No one likes unpleasant surprises. Unanticipated things happen routinely of course, but no one likes to learn about unwelcome developments long after they manifest. Nowhere in business is this principal more important than in the borrower-lender relationship. Businesses depend on liquidity for daily operations, and it is the lender’s role to provide it. Maintaining open lines of communication is especially important when the economy comes under stress, when the unexpected becomes the expected.
Non-bank commercial lenders have a special place in today’s financial system as capital providers to small and medium sized businesses. The eCapital group of companies, along with others in our industry, support hundreds of thousands of enterprises across the US and Canada, employing millions while indirectly funding many more suppliers, landlords, and capital goods providers. Our success is solely dependent on the good health of our borrowers.
Given this relationship, transparent sharing of real time information is vital to shared prosperity. We abide by this principle of regular communication with all of our customers, and this core operating belief will be on full display in the coming weeks. But this relationship works best when borrowers keep their lender fully informed. Good or bad, up or down, a candid dialogue opens the door to necessary short-term accommodations, modifications, and a host of other creative solutions that preserve value. Global Merchant Fund companies have a host of liquidity solutions available to help borrowers through difficult times. Tailored solutions work best. Help us help you by sharing all you know about your condition.
Communication is the beginning of understanding. Don’t keep problems and issues to yourself. Sharing challenges with your lender early and often will not only help ensure we get through challenging times together, but also help build a foundation of trust for a brighter future. The benefits of this kind of approach will come as a surprise to no one.
F. Bruce Sim