Many businesses are digging out of debt. If you have read my previous posts on this topic, you know just *what your debt situation is*, are being *careful to spend improved revenues on the most important needs*, are *holding off paying debt down early* unless that is the best choice, and are *in touch with your lender* already if you are missing any covenants or behind on your payments.
Just like in the story of Goldilocks and the Three Bears, your business debt level might be too small, too big or just right. No matter, the next step in dealing with business debt could actually be fun.
Call your lender up and invite him or her to stop on by. Business lenders are out calling on customers and prospects. They are looking for loans. If you are a customer and things are looking up, you want them to know about it. Even if you are not going in for a loan or loan increase now, you want them to have a good feel for your business.
Here is the agenda:
- Give them a tour. Let them see that your business is active.
- Tell them a story. What has worked and has not worked in the last two years. What core business strategies have you employed? Or have you branched out, up or down to pick up related business? How are your major customers doing? How about your industry? Bring them up to speed so they’ll be able to tell your story in their loan write-up when the time comes.
- Refer them to other prospects. Your lender wants to make business loans. (Yes, I am repeating myself.) Give them referrals to other prospective borrowers and you are establishing yourself as a business partner, not someone with their hand out.
Follow up with a hand-written thank you card. I can promise you, when it is time for the loan request, you’ll be ahead of the game.
The last step to dealing with your business debt is in the next post: Start courting other lenders.