March 3rd, 2025 | by Mary Windham | This post may contain affiliate links
When it comes to turning your business vision into reality, one of the most critical aspects is securing funding. But here’s the thing—banks don’t fund ideas; they fund people. That’s why building strong relationships with bankers is essential to your entrepreneurial success.
In this post, we’ll explore why forming connections with banks early is a game-changer and the practical steps you can take to secure funding for your business.
Why Do Relationships with Banks Matter?
Banks don’t just look at your business plan; they look at you. They want to see that you’re responsible, reliable, and capable of managing their capital wisely. Think of it like networking—you wouldn’t ask a stranger for a favor the first time you meet them, right? The same principle applies to banks.
When I started working on The Thomas Manor, I didn’t just meet with my personal banker—I reached out to multiple financial institutions to explore all my options. My meetings with these banks and potential investors were eye-opening.
They weren’t just interested in my business; they wanted to know about my financial habits, my goals, and my ability to execute my vision.
Here’s what I learned banks care about the most:
Your Business Plan: Can you clearly explain your vision and how you’ll make it profitable?
Financial Health: Both your personal and business credit scores matter.
Industry Knowledge: Do you truly understand your market and the risks involved?
I came prepared—with financial statements, projections, and even the personal story behind The Thomas Manor. That preparation made all the difference.
4 Steps to Secure Funding and Build Bank Relationships
Whether you’re applying for a business loan, a line of credit, or even pitching to investors, following these four steps will help you stand out and secure the capital you need.
Step 1: Build Relationships Early
One of the biggest mistakes entrepreneurs make is waiting until they need money to start talking to banks. Instead, take a proactive approach:
Schedule Introductory Meetings: Reach out to your local bank or credit union and introduce yourself as a business owner.
Build Rapport: Share your business vision, milestones, and ask for advice—don’t make it all about loans.
Stay Connected: Keep your banker in the loop about new contracts, revenue growth, or updated financials. This demonstrates that you’re proactive and trustworthy.
Step 2: Organize Your Financials
Before a bank will lend to you, they need to see that you’re running a responsible operation. Here’s what to focus on:
Your Personal & Business Credit: Aim for a score of 680 or higher.
Financial Statements: Keep your Profit & Loss statement, balance sheet, and cash flow statement updated.
Tax Returns: Most banks will ask for at least two years of personal and business tax returns (if applicable).
Debt-to-Income Ratio: Ensure your existing debt load is manageable, as it will impact your loan eligibility.
Step 3: Solidify Your Business Plan
Your business plan isn’t just a document—it’s your blueprint for success. Here’s what banks want to see:
Clear Business Model: What’s your product or service? How do you generate revenue?
Financial Projections: Show realistic income, expense, and profit projections for the next 12 to 24 months.
Risk Mitigation: Explain how you’ll handle potential challenges like market shifts or supply chain issues.
Use of Funds: Clearly outline how you’ll use the loan—whether it’s for equipment, hiring, or working capital.
Need help crafting your business plan? Download my free Business Plan Checklist!
Step 4: Explore Alternative Funding Sources
Traditional bank loans are great, but they’re not your only option. Consider these alternatives:
SBA Loans: Offered by the Small Business Administration, these loans provide lower interest rates and flexible terms.
Grants: Look into federal, state, and private grants for small businesses.
Lines of Credit: These are useful for managing cash flow without taking on long-term debt.
Private Investors: If you have a compelling business story, investors may be willing to fund your growth.
Final Thoughts
Building relationships with bankers isn’t just about getting money—it’s about forming partnerships that support your long-term success.
If you need help developing a funding strategy for your business, book a 1:1 strategy session for personalized guidance.
If you found this post helpful, share it with fellow entrepreneurs, and let’s continue the conversation in the comments: What’s been your experience with business funding?
In next week's post, we’ll be discussing why I launched the virtual side of The Thomas Manor before the physical space was even built—and how this approach can help you strategically grow your business.
Now… let’s get to planning! 💡
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