The Power is In the Question

So what impressed my client is Banker #2's ability to ask questions.  The questions were thoughtful, showed genuine interest in the client's business and did not come off as interrogating.  Bankers pay attention, here is what your clients say is important.  Business owners pay attention to what questions your banker is asking.  Are they thoughtful and show genuine interest in your business?  Hopefully, the banker is not making you feel like you're being cross examined by the DA.  So, what's important?  The power is not only in the question but in how the question is asked.

Some bankers just go through the motions of asking questions because that's their job.  The only way they can get the loan approved is by asking all the questions that they are going to get asked by credit administration.  (The people that approve the loans).  Other bankers show genuine interest in how their client started their business, how did they find the industry that they are in, how the business works, what are the things that are going well in the business and what challenges does the business owner face.   The banker and business are emotionally engaged because there's genuine interest on both side.

My client also said how the questions were asked was also important.  A CPA friend of mine, does a presentation frequently to business owners and college students preparing to enter the business world on body language.  Here's an interesting fact.  93% of communication is body language and tonality.  Only 7% of communication is the actual words you say.  You've probably heard "It's not what you say but how you say it" There's truth in that statement.  Can you ask bad questions with good body language and tonality?   Maybe...  Can you ask bad questions with poor body language and tonality?  Probably not...  Good questions and good body language and tonality is a slam dunk.

Yes, the power is in the question.  But, there's probably more power in how the question is asked.  Business owners and bankers beware.  What is your body language and tonality saying or not saying?  There's a lot more to questions than words.

The Client Picked Banker ...........

#2!!  Why you  might ask?  Banker #1 took the client to a nice Italian meal.  That's true.

I asked the client why he chose Banker #2.  Here's his answer "Banker #2 asked good questions, but was never interrogating.  After I shared information about my company, Banker #2 shared information about herself and the bank she worked for.  It was an exchange.  (Interesting... a two way dialogue, an exchange of information.)  She came to my office for the visit and brought her manager to meeting #1 and when she delivered my commitment letter, she brought a cash management specialist to meeting number #2.  She anticipated I would have questions about implementation and how my cash management system would work.  (Hmmm...proactive, not reactive) The bank commitment was exactly what I asked for and there was a slight cost savings for my line of credit.  (Nice...cost is not the only factor, but it is a factor).  She delivered the documentation to my office and the closing was as I expected.  No surprises."

So, why Banker #2.  Stay tuned tomorrow for some additional thoughts.  My apologies to my readers who have been waiting too long for this post!

Game Show Bankers

You may remember the popular game show, Let's Make a Deal where Monty Hall would ask contestants if they wanted the prize behind door number 1, 2, or 3.  Sometimes they won the big prize...sometimes they didn't.  It was a guessing game.

Recently, I had a client who wanted to move his banking relationship from his current bank, so I worked with him as he interviewed three bankers to choose a new one.  Although my client now knows more than the show contestants did about what lies “behind each curtain,” in the end, I asked him to choose: Would he like the banker behind Door number 1, Door number 2 or Door Number 3. Wanna play too?

Door #1

This banker invited my client to lunch.  The banker included one of his co-workers and me.  We had lunch at a nice Italian restaurant, so the meeting involved good food (nice).  It was on neutral turf and didn’t feel like a meeting because the banker and client spent time getting to know each other.  At the end of lunch, the banker communicated an interest in providing what my client needed, and about 5 days later provided a letter of intent with terms similar to those discussed at lunch.  This banker also offered free company and personal banking to my client. Would you choose the banker behind Door #1  (Hmm…Maybe? Probably?)

Door #2

This banker wanted to meet my client at the client’s office.  The banker brought a co-worker.  Because the meeting was at my client's office, my client had home field advantage, but the bankers seemed totally comfortable with that.  The meeting was the typical getting to know you, the client told his story about the business, the bankers asked questions and my client gave answers.  At the end of the meeting, these bankers also expressed interest and about a week later provided a letter of intent with very attractive pricing and terms.  The banker again came to my client’s office and this time brought a cash management product specialist to discuss the company's deposit needs.  Would you pick the banker behind Door #2? (Hmmmm. Nice Banker. They come to me.)

Door #3:

This banker invited my client to the banker's office.  My client showed up to be greeted by the banker, a co-worker and the credit guy.  I'm glad I was there to support my client.  The bankers had home field advantage and outnumbered my client 3 to 1.  The meeting lasted for two hours. My client felt interrogated and intimidated.  Door #3 banker sent me an email stating that he had more questions and wanted to know if he could call the client directly.  I said, “Go for it.”  Five days later: No expression of interest, no letter of intent and more questions.  So, would you pick the banker behind Door #3 (hmmm... Probably not.  No, definitely not.)

Lessons learned by my client:

Some bankers want to entertain first, and then get down to business (nice touch); Some bankers are comfortable giving the client home field advantage, some aren't. Some bankers ask questions, some interrogate.  Bottom line: Be ready for anything, Italian food or Gestapo interrogations.

So which door did you pick?  Check back tomorrow to find out which my client chose and why.

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