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W W W. M A I N E B I Z . B I Z 29 A P R I L 1 8 , 2 0 1 6 F O C U S S pring brings growth and new activity. In the commercial lending world, it's also when small- and mid- size businesses get serious about launch- ing, growing or expanding. We cel- ebrate national Small Business Month throughout May, which is a great time to honor the impact small businesses are making throughout Maine. With growth on our minds, businesses can benefi t from learning to work with a banker to support that growth. It is said that longevity in business is based upon ensuring relationships with a good attorney, CPA, insurance agent and banker. Here are fi ve ways to work with your banker as you grow your business: 1. Contacts A connected commercial lender knows many people in a variety of geographi- cal regions and industries. ese include fi nancial service professionals as well as other business owners who might pro- vide complementary services. Whether you want to strike up relationships with important centers of infl uence or you are considering expanding into a diff er- ent market, ask your lender to put you in contact with the people most quali- fi ed to off er vital assistance or services. 2. Portfolio Management Part of being a good business owner includes placing your business in the best possible position to deal with inevi- table change. Every business is at some stage within its own business cycle. Understanding where yours resides dictates how you should structure exist- ing and future debts. Sometimes it is most important to maximize cash fl ow whereas, in other instances, debt reduc- tion should be the focus. A collaborative lender will take the time to help you best position your business for whatever the future may hold. 3. Knowledge An experienced commercial lender has resources. He or she may possess experi- ence in diff erent industries or knowledge of programs that can help you expand your business. Lenders know where to refer small business owners for assistance in preparing business plans or fi nding a respected fi rm to prepare a feasibility study. He or she will also know when a fi nancial intermediary like FAME, SBA, Rural Development or a more localized source is needed. Sometimes, a business owner considering an expansion might hesitate based upon the common notion that 25% down is required for an acquisi- tion. e business owner may possess the resources for this contribution, but at the cost of depleting reserves to inad- equate levels. An informed lender may be able to fi nd other fi nancing resources to bridge the gap and leave emergency funds intact. 4. Communication One mistake some small business owners make is to not keep their commercial lender informed. If there is a material change taking place within your organization, your lender should be one of the fi rst to know. It is increasingly diffi cult for lenders to assist with adverse circumstances the longer that they persist without his/her knowledge. A concerned lender may be able to help you through diffi cult circumstances before they snowball into a major problem. Additionally, the best growth opportunities are ones that require immediate action. In business, timing is everything and a few days lost in bringing a lender up to speed can be the diff erence between celebrat- ing a golden opportunity and bemoan- ing the one that got away. 5. Partnership A successful business is about rela- tionships. Your banker has a vested interest in your success and is often- times one of your biggest fans. When things are tough or your business is making a leap of faith, you want a trusted advisor standing next to you. If you have based your banking relationships upon who can save you that extra percentage in pricing, you may or may not be able to count on the next lender when you need his or her assistance most. A good business owner should aspire to create mutu- ally benefi cial relationships — with customers, vendors, service providers or even bankers. A good commercial lender will endeavor to treat you fairly. If you reciprocate, everybody wins. D M . E , w h o manages the commercial lending division at Androscoggin Bank, can be reached at DE@ . Work with your commercial lender to grow your business B Y D A V I D M . E L D R I D G E H OW TO 95 York Street | Kennebunk www.HancockLumber.com • 30,000 sq. ft. state-of-the-art facility • Built to Deliver drive-thru warehouse • Interactive hardware store • Modern kitchen + bath design showroom • Now open in Kennebunk LUXURY COMBINED WITH UNPARALLELED SPORT UTILITY. 72 Lafayette Street Yarmouth, ME 04096 (207) 846-9050 YarmouthBoatYard.com Ultimately, There is Pursuit THE NEXT INNOVATION IN DUAL CONSOLE PERFORMANCE DC235 DUAL CONSOLE DC265 DUAL CONSOLE DC295 DUAL CONSOLE INTRODUCING THE ALL NEW DC325 DUAL CONSOLE

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