 TITLE: How to Negotiate With Your Bank When Your Company’s Cash Is Tight CONTENT: How to Get Help From Your Bank for Your Business\n------------------------------------------------\nReaching out to your bank if you're anticipating (or experiencing) significant cash flow issues is always the best first step. In addition to helping relieve your cash needs, your banker may also be able to discuss the possibility of deferred payments, reduced fees, improved rates or additional services to help you through a tough time.\nYou don't need to contact your bank for every minor cash flow hiccup. But if your business is experiencing long-term challenges or if you are likely to miss loan payments, sooner is better for a frank conversation. Here are a few reasons why:\n*   **Acting early means avoiding pitfalls.** The best time to create a plan of action is before you deplete business funds, tap into personal assets, raid your retirement, miss payments or max out your available credit. If you plan to borrow money to get your business through a tough period, you are likely to get better terms when your assets and credit are intact—before a spike in credit utilization or late payments affect the business credit score you've been working hard to establish. In fact, acting strategically early may help you avoid these pitfalls entirely. If you're already past that point, don't worry—you're not the only business in a difficult situation. Read on.\n*   **You can learn about your options.** A new loan or a low-interest credit card offer could be just the infusion your business needs to weather a crisis. Although you may ultimately consider alternative sources of funding, understanding what your bank has to offer is a good start. It may also be the gateway to specific resources, as it has been during the COVID-19 crisis. In this case, many banks processing SBA loans have worked almost exclusively on applications from their existing customers.\n*   **You can optimize your banking relationship.** If your banking relationship consists of a basic checking account and a credit card, you may not think of your banker as a trusted financial advisor. But in an ideal world, they might be. This is your banker's opportunity to be more to your business. Can they offer competitive rates on merchant services? Are there discounts available to premium customers? Can your banker provide referrals, resources and advice? A good banking relationship is symbiotic: Your bank succeeds by helping you succeed. END