Don't just say no...

My God its easy to simply say NO when someone comes to your bank. After all if we try hard enough we can find a good reason to not do anything. But before you say your next NO think about a few things first.

I can't tell you how many times someone comes to me with a business, either new or existing, lays out their plans with enthusiasm and sits back cringing waiting for what they assume is the inevitable "NO". What I try to do is give a "soft" NO, not a hard one. What does that mean? One of my mentors, Steve Gurin, was and is notorious for going the extra mile, a strategy I try to emulate. He would take what right now is an un-bankable deal and offer advice on how it could some day be bankable. That is just who he is, he likes to help.

 

How unique is that? Turns out it is super unique. More often than not when I take the time to really hear a person's story, and then offer advice on where they can go next (Vermont Community Loan Fund, Vermont Small Business Development Center maybe to help tweek their plan) they are shocked. You see these folks often are coming from other institutions that simply looked at what they had (or sadly just looked at them), decided it didn't fit and sent them on their way (don't let the door hit ya...). Funny thing is these folks remember that, and someday if and when they achieve a "bankable" status you can be darn sure they will remember then.

 

They will also remember the banker that took the time to really listen, offer advice and do a bit of coaching to help them refine their plan. This is self serving to a point, especially if they go out and work hard to develop a business that qualifies for bank financing, but you will find it greatly satisfying at the end of the day if you can offer something useful to the many folks you come in contact with each day.

 

So the next time someone comes to you, try and take a little extra time with them and do a bit of coaching, after all we as the banker know best what it takes to get approved, and we also have the network in place to offer sound advice and connect them with the many financing partners and agencies in our communities that may serve them best at this point in their development.  Heck, you may even find one of your clients would be a good quasi-mentor fit for them to talk to. The point is take the time to listen and try for the "soft" NO, instead of the quick and easy "hard" one.