How This Bank Earned a Customer For Life

April 30, 2019

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“My experience with (your bank) has been nothing short of exceptional on all counts and with that – because of it – I fully intend that our company will be with you for a very long time in all banking matters as we establish and grow domestically and internationally.”

 

A VITAL lender recently received a note from a happy commercial borrower after their successful SBA loan. The statement above was part of a lengthy letter the borrower sent to the bank’s Board of Directors, detailing how pleased they were with the experience.


So pleased, that in addition to the SBA loan, the company now has payroll, treasury, and insurance services with the bank. And, they’ve already referred additional new business opportunities.


I’m sharing this example to demonstrate how effective an SBA lending program can be for attracting new customers and building loyalty.


Here is what the bank did to create an experience that earned them a customer for life. It is great information for any lender that wants to form long-term, mutually beneficial and profitable relationships with business customers.

 

They looked for ways to say "yes" – without unnecessary risk.
The borrower was a start-up that needed several million dollars in working capital – which didn’t make them an ideal candidate for a conventional loan. Though they had raised capital from investors, the company faced difficulties obtaining traditional bank credit, and was concerned about the impact this could have on growth opportunities.

 

A thorough review of the CEO’s work experience showed him to be a capable businessman. He had a long history in the industry, and a track record that included creating high-performing sales engines. His start-up had a solid business plan, good cash flow, a growing client roster and major opportunities for growth.


The lender decided to extend $3 million in credit, backed by a guarantee from the Small Business Administration. This allowed the bank to support the company’s growth trajectory while mitigating additional risk. It also sent a clear signal to the company that this bank would be partner equipped with solutions.

 

Interested in building your pipeline of commercial & industrial borrowers? We can help.  


They gave the customer everything they needed – and nothing they didn’t.
Financial institutions often have specific products they promote at different points throughout the year, which help customers become aware of the full scope of services. This is a good idea – but can become problematic if promotional products are pushed when they don’t make good sense.


In this case, an analysis was done to understand the customer’s specific needs and how they aligned with the bank’s products and services. In addition to the SBA loan, the bank identified opportunities to offer payroll, treasury and insurance services. This created a comprehensive and efficient financial solution that delivered real value to the customer.


They let the company know they cared about its success.
Particularly when a business has never received an SBA loan, the willingness to answer questions and provide guidance through the process can cement a positive, long-term working relationship. This is what you can expect when partnering with VITAL. The customer said it best in his letter:

 

  • “I knew everyone was busy, but I was never made to feel that way.”
  •  “I never felt like I was bothering anyone – something I am certainly not used to having been with (big bank).”
  • “I always felt I was the bank’s highest priority no matter when I called or what I needed help with.”


SBA loans are a valuable tool every community bank can have in their commercial lending toolkit with the right expert partner. We’ll help you create an exceptional customer experience that builds long-term, rewarding relationships with your business customers. 


Interested in learning more about SBA and USDA-guaranteed loans? Download our free e-book: Your Guide to SBA and USDA Lending.  

  

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Tags: SBA Loan Commercial and industrial loan C&I customer loyalty