Business Owners: Tips to Build Lender Trust

Be the Kind of Borrower Every Lender Wants to Back

In business, financing isn’t just about accessing working capital; it’s about building a long-term relationship that supports your growth, even through challenges. Whether you’re working with a traditional bank, an asset-based lender, or an alternative finance partner, how you’re perceived plays a major role in how much support you’ll receive.

When lenders see you as reliable, proactive, and transparent, they offer more than money. They offer flexibility, speed, and advocacy when it counts.

Why Being a Trusted Borrower Matters

Your lender’s view of you affects:

• Your ability to access capital quickly.
• The level of trust and flexibility they extend.
• Their willingness to continue financing your business over time.

Being seen as a top-tier borrower gives you leverage during growth and breathing room when things get tight.

5 Proven Ways to Be a Trusted Borrower

1. Communicate Proactively and Regularly

Don’t wait for problems or for your lender to ask for updates. Share performance reports, milestones, and key changes monthly or quarterly. It shows leadership, earns confidence, and makes you memorable (in a good way).

2. Submit Financial Reports Ahead of Deadlines

Stay ahead of your reporting schedule. Submitting financials, compliance docs, and performance metrics early shows that you’re organized and respectful of the lender’s process, and reduces the chance of red flags.

3. Respond Quickly to Requests

When a lender requests financial statements or documentation, don’t delay. Quick, complete responses signal reliability and strong financial control, which are two things lenders prize. Remember: it’s risk management, it’s not personal.

4. Be Transparent About Financial Challenges

If your business is facing revenue drops, supply chain delays, or a cash flow crunch, don’t hide it. Lenders can work with challenges; they can’t work with silence. Sharing the situation early helps prevent panic and encourages support.

5. Always Bring a Plan

If you miss a covenant or foresee a financial issue, bring it to your lender with a solution. Explain what happened and what you’re doing about it. This builds trust, shows accountability, and keeps the door open to future flexibility.

The Benefits of Your Lender’s Trust

A strong borrower-lender relationship offers powerful benefits:

• Faster access to working capital.
• Greater flexibility in loan structures and renewals.
• More support during market disruptions or downturns.
• A long-term financial partner who advocates for your business.

Remember, your lender controls your funding. When you’re seen as a standout client, lenders want to help you grow, not just manage your risk. Especially in today’s financial landscape, your credibility is just as valuable as your credit.

About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power, and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset-based financing solutions from $500,000 to $8 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at celticcapital.com.