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One of the most important relationships that any small business owner has is with his or her banker. Michelle Field, Vice President of Business Banking at BMO Bank of Montreal notes that many businesses only approach their banker when they have a specific need for a loan or other financial services. She suggests that a better approach might be to foster an ongoing relationship that can help nurture the business through its many stages of development. There are many ways to develop that relationship and to make sure your banker is familiar with your business. They include:

• Have a business plan and discuss it with your banker regularly.
• Prepare a cash flow budget and update it monthly.
• Prepare a list of aged receivables and payables monthly; weekly or even daily if you encounter unanticipated business challenges.
• Give your banker regular business updates before significant changes occur:
  - new large orders anticipated
  - plans for expansion
  - additions to premises.
• Proactively share any business challenges or changes to your operations with your banker:
  - receivables lengthening
  - inventory turns slowing down
  - suppliers becoming more demanding
  - increases in rent
  - loss of contracts or orders.
• Have regular meetings with your banker whether or not you are currently borrowing.
• Establish a line of credit in anticipation of financial needs as determined from your cash flow.
• Invite your banker to your premises to find out more about your business your customers and your staff.
• Always pay down "bulges", term loans and special loans on time.
• If you are going to be late with a loan payment, discuss the problem in advance and suggest a solution.
• Use your banker as an introduction to other professional sources of business support and capital.
• Keep your own personal finances in order. You don't have to use the same bank, but it helps sometimes.

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