Lots of Miles, But Still Running Strong.

In these pages I’ve talked about experienced professionals who help with aspects of running, growing, and selling businesses. And there are many other people offering to guide you to the best ways to use business capital. But where does the money come from? If you’re borrowing, how can you make sure you’re getting a safe, stable loan that meets your needs and suits your unique circumstances?

Guess what! I know a guy. Meet my friend Greg Sheldon with BOK Financial. Greg’s favorite part of his job is helping clients achieve stretch goals – whether that be buying a building or a competing company, opening another location or consolidating operations, or reaching a particular milestone, such as topping $100 million in revenue.

We’ve all heard stories about the frustration, even exasperation, some people have experienced in a lending relationship. Sometimes the experience stems from turnover, lack of experience, or lending guideline or policy changes. Many times, these bad outcomes could have been mitigated or avoided by someone experienced in guiding clients through the lending process. “The banker,” Greg says, “should understand the bank’s credit appetite and credit policy, know who makes the lending decision and what latitude they may possess to get a loan approved. This is acquired through experience.”

Some large banks approach lending by dumping loan application data into a work queue and randomly assigning the application to a loan officer who processes the application based on an algorithm set within the bank’s credit matrix. Even if the borrower participates in any of this process, there is usually not a lot of room for deviation.

One way to avoid a “one size fits all” approach involves getting to know both the bank and the banker. Ask them for examples of when they’ve made loans similar to the loan you may be seeking. If a banker isn’t capable of giving you the specifics of the bank’s credit policies, it’s a red flag.

Greg tries to look at the borrower’s unique situation and apply his experience of more than 35 years to craft a loan that suits the needs of the client and the business. Greg starts his process with an interview designed to help him to get to know the client and to help the client to get to know the bank. Greg next builds a risk profile, based on “lots of math and a little bit of data,” to determine whether and how the loan might work. Greg also relies on past performance and experience-based projections to make sure the borrower will be able to manage the loan, both in the near-term and where the borrower plans to go in the future. This may include establishing the metrics of near- and mid-term success that will enable the bank to continue to support the client. Using this long-term perspective, Greg works with the client to create a lending plan that helps the client accomplish their goals.

Greg emphasizes that a banker must be a good listener, ask lots of questions, and shouldn’t be afraid to have a hard conversation if the borrower’s numbers don’t work or if the bank doesn’t offer the right product. “I don’t like to tell people ‘no’,” he says, “but sometimes because of industry limitations, stretch on cash flow, or inflexible terms needed for the specific situation, it’s better to set realistic expectations at an early stage rather than allow the process to continue only to result in the loan being declined.”

Clients describe Greg as experienced and reliable, noting that “Greg gets it done” and “If Greg says he can do it, he’ll deliver.” In one example in which the client’s existing banker wasn’t delivering as needed, Greg helped create a relationship offering better solutions to address the client’s problems without creating any down time that the client would typically experience in a similar changeover.

Greg has helped more than a few clients with long-term business strategies, such as developing a growth plan and strategy that required only a single banking relationship. In many cases, Greg’s clients who reached their goals may not have enjoyed the same results with other bankers. In one case, Greg’s client was designing a flagship building and by the time they reached Greg, had interviewed 10 other bankers. Even with the complications of a large loan request, multiple cash flow streams, and several affiliated companies, Greg delivered the $25 million loan and the client began construction. The resulting new building allowed the client to consolidate all its affiliated employees under one roof.

Greg says he particularly likes taking on complex projects, especially if other bankers are likely to pass. I guess Greg likes to accomplish things that others can’t or won’t do.  If you might be looking for a banking relationship, Greg suggests looking for someone with experience and who enjoys rapport within their bank. Ask how long have they been in the industry and how long at their bank. Ask who makes the lending decisions and how often the banker talks with the decision-makers. What metrics will the bank require for a favorable outcome? And most importantly, what are some recent examples of similar loans the bank and banker have made?

Greg’s ideal client is a growing business with $25 to $50 million in revenue and whose owners want active input from their banker about borrowing and managing cash. If you might like to meet Greg, please contact me. I’d be honored to connect you.