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Case StudiesLender & Investor Communication
There is more than one language spoken in a deal process. Lenders speak their own language that many business owners are not fluent in. This language uses abstract words and can be overly financial and technical. Entrepreneurs speak in their own language as well, using industry terms and more practical terms. Much like it’s a challenge to conduct business with people in other countries with different languages, it can be just as daunting if you do not understand the language of a lender. You need an advisor to help you translate the language and anticipate their process. Without this, you may feel lost and not in control. You should also ensure you have your ducks lined up before you engage with the lender and make sure you know their expectations relating to:
- Quality of your Confidential Information Memorandum.
- Timing & Negotiating.
- Financial Statement Reporting.
- Professionalism.
- Management Quality and depth.
Building Strong Lender Relationships Through Clear, Transparent Communication
Most lenders do not have real operating experience, making it challenging for them to communicate at a grass roots level. Regardless of the language they use, it is important to make sure you understand them and grasp their performance and relationship expectations. Strong communication leads to a good lender relationship which can help you out should the company struggle. If your lender believes you are trying your best and being transparent with them, they will stay in your corner. Like any important relationship, whether a customer, vendor or strategic partner, you should prioritize your lender, so they feel special.
Frequently Asked Question
You should speak or email them at least once every two weeks. It can be a routine update on the business or filling them in on a new development. The more you share with them, regardless of how basic the information, the closer they feel to you.
Just because you have a new person does not mean you have to stop communicating with your original contact. It is best to build a new relationship with the new person while maintaining the old relationship.
It is important to note what the lender says as well as what they do not say. Sometimes, the latter is more important than the former. Lenders often send mixed message as well which are hard to decipher. It is a good idea to discuss this type of interaction with your investment banker.
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Attract Capital is a highly skilled translator of the language and expectations of a lender. With us leading the process, you’ll not only understand them but be able to communicate your position with clarity and authority.
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ATTAIN BETTER LENDER-INVESTOR COMMUNICATION TODAY…
Let us act as the go-between needed to foster a relationship between your company and your lender. This can pay-off in a big way for funding future growth opportunities.
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