 TITLE: How to Negotiate With Your Bank When Your Company’s Cash Is Tight CONTENT: 7 Steps to a Better Negotiation With Your Bank\n----------------------------------------------\nIn a tightening economy—and faced with a cash crunch—you may wonder whether this is a good time to ask your bank for a loan or for any other consideration. While it may not be the best time, it could definitely be the right time. If you're a valued customer and you represent a good risk, you are ready to negotiate. Here are a tips for preparing to negotiate:\n1.  Know your business credit score. Your small business has its own credit score, based on factors that include the number of trade experiences you've had, outstanding balances, payment habits, credit utilization and business size. Getting a copy of your [business credit report](;WT.ti=small%20business%20credit%20score&WT.srch=1&bcd=ad_c_sem_7_&k_id=4db0a5eb-de35-4c9a-b8b3-6e074004e2c4&k_kw=small%20business%20credit%20score&k_mt=e&gclid=CjwKCAjwp-X0BRAFEiwAheRui7f_K6W2GAptIhWutibGGYPfg8x5TD098mDWSXo2b426wzb7_gv5LBoCVYkQAvD_BwE&link=5558) in advance will help you speak with authority about your creditworthiness and your business's ability to transcend your current challenges.\n2.  Get your story straight. Be ready to articulate—in a few sentences—what your situation is and how you would like your bank to help. You can, and will, provide additional details throughout your discussion, but having a quick summary ready will frame your conversation from the start.\n3.  Know your numbers. Review your finances so you can speak to overall growth and profitability in your business, the impact of recent events or trends, and how much money you need to position your company for success.\n4.  Bring ideas. Take a few moments to familiarize yourself with some of the options your bank might have to offer, including SBA loans, lines of credit and low rate credit card offers. Also review everything you're currently doing with your bank. Can your accounts be consolidated? Are all of your services necessary? Are discounts available based on the business you bring?\n5.  Be open. While you want to stand your ground in any negotiation, be prepared to compromise if the terms you're offered are acceptable and you think a better offer is unlikely. If your banker has an idea you didn't think of, hear them out.\n6.  Understand your alternatives. At the same time, don't agree to anything you don't understand fully. Ask questions. Get an outside opinion if you think it would be helpful. Remember you have other alternatives: contacting another bank, using personal funds, negotiating with vendors and creditors, crowdsourcing, and cutting expenses. Hopefully, your bank will beat these options. If not, you have a plan B.\n7.  Take your time. Any financial shortfall can feel like an emergency—especially when your business is at stake. Nevertheless, don't be afraid to take a moment at the end of your negotiation to think through what you'd like to do next. Will the proposed solution really solve your problems? Are you prepared to take on additional debt? Can you move forward with confidence? Find clarity before you proceed: The road ahead is long.\nBuilding an Alliance\n--------------------\nThink of your bank as your ally in maintaining the financial health of your business. When cash is tight, the idea of having a discussion with your banker may not be fun, but it may help you overcome temporary challenges, build a more productive banking relationship and set your business on the right track for recovery. END