Why Owe a Loan… When You Can Own a Lending Relationship?
The term “lending relationship” sounds old school, much like a relic of yesteryear that has long since left us standing alone on a street corner shouldering the wind. Yet, even today, business depends on strong relationships that are supported and bolstered by underlying trust. As the lending world has become increasingly digitized and centralized, there is far less-person-to-person connection, especially at the local level. This can leave a company feeling like a transaction, a mere number within a database on the cloud.
Yet lending relationships, the antithesis of a transaction, still exist. Albeit rare, they are complex information-based bonds between people. As with all relationships, they start through a person-to-person educational process about the business and the people that run the business and grow from there. These relationships are strengthened through open and ongoing two-way communication between the parties. Strengths and weaknesses, goals and objectives of the given business are discussed.
When objective information is honestly communicated, trust is forged which creates the bedrock of any good lending relationship. The lending relationship is the most important thing you can gain from your lender because it gives you the power to manage and scale the relationship.
If your lender trusts you, they will “go to bat” for you. It’s that simple. They will give you the benefit of the doubt. They will stand behind you if the company has a downturn. They can give you more money, should you need it to scale. Lending relationships allow people to deal with one another outside of a transactional context on a personal relationship basis that’s built on trust. When you own a lending relationship, you have the power of financial strength behind you.
Interested in learning more about lending relationships and how they can benefit your business? Call or email us today at [email protected] or visit us at www.attractcapital.com .