Volume 8, Number 3, March 12, 2009Creating The Best Relationship
You’ve Ever Had with Your Banker
And Getting The Financing
You Need for Your Business
Speaker Gary Gordon
TUCSON, AZ--CPA and veteran jeweler Gary Gordon shared his financial insights step-by-step for retailers at the Centurion show on January 31. His purpose was to teach fellow retailers how to work with their bankers so their financing requests are met – and even exceeded. Gordon is a third generation jeweler and runs 104-year-old Samuel Gordon Jewelers, Oklahoma City, OK.
Gordon talked retailers through reports, financial statistics and strategies developed over years of practice, many of which are considered daring by some retailers.
“The whole spirit is that you can get away more with honey than you can with vinegar,” said Gordon. “If you give your banker more information than they ask for and pay them faster than what they ask for, then they are much, much more inclined to be on your side.”
He also explained how retailers could create a summary of monthly financial activity to better work with bankers; how to always put their best financial foot forward with honesty and integrity; when to give their banker more information; and the simple tests that a bank performs – and a retailer can perform – to let them know where they stand.
“Retailers tend to treat their bankers like they’re playing a game of poker,” continued Gordon. “We want to eliminate that ‘us against them’ feeling, to get them on our side, to meet the needs of our business.”
Gordon offered many his own personal techniques in the seminar that have worked for him over the years to build a solid and beneficial relationship with his banker. The attendees of the seminar responded well, and many stayed later to approach Gordon with more questions.
Gordon said that he could tell some were hesitant about his techniques but still very interested in how they work, and walked away with quite a bit to think about. The bottom line, he said, is to get the banker to want to help you. To do this, you have to help them.
7 Forms Available for $25 Donation to Jewelers For Children
You can get the seven special financial forms Gordon uses to ensure the best possible relationship with his banker. Click the headline to this paragraph to get the form to make a $25 donation to JFC and fax it to Centurion at 413-683-1333. Centurion will mail you the forms. Those contributing up to $125 will receive the forms as well as a phone consultation with Gordon. Gordon has served on the Board of JFC, and was Chairman of the Jewelry Information Center.
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The Centurion What Jewelers Think email newsletter is published to benefit higher-end retail jewelers, designers and manufacturers of fine jewelry and watches. The newsletter is edited by Howard Hauben and contributors include Gary Gordon, Denise Mignone, Jeff Pierce, Caroline Stanley, John Von Bargen, Steve Yenco, Natalie Zacharia and others. To OPT Out, please email hh@centurionjewelry.com and put Opt-Out in the subject line.
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I suppose few have had the banking education I have. Like Gary, I had a very favorable relationship with my bankers; in fact I was heavily recruited by the bank’s regional president and was continually offered more credit at better terms. The bank officer encouraged us to open our seventh store, and despite some personal reservations (mostly, my wife was against it,) my management team and the bank convinced me to do so. We received a five year note to finance the new store along with inventory and had a perfect payment history. The only negative experience I had with my loan officer was when he purchased an engagement ring, under very favorable terms, kept it for 18 months, and then demanded a full refund, threatening one of my managers in the process. Three months later, our loans were “re-classified,” called (yes, a five year note was “called” in only five months) and six months later, our inventory was seized under false pretenses (to conduct a collateral “review”) and then our bank attempted to sell our inventory to a third party liquidator, and our regional chain was forced to shut down.
ReplyDeleteSeveral issues drove our situation. Our bank, Wachovia, now Wells Fargo, was in need of cash. They apparently misspelled our corporate name in their lien search and believed they were the only secured creditor for our inventory. Their reporting period ended June 30th, and they took our inventory on June 26th. If they had spelled our name correctly and identified other secured creditors, or if more of our suppliers had filed UCC’s, and if I had an inventory which was not as liquid as precious metals, our bank would probably have looked elsewhere for quick cash. But, we can’t live on “what if’s.”
I’ve learned some valuable lessons. A man’s worth is not based on what he owns; a man’s value is not determined by what he does and you cannot fail if you don’t quit, because you’re only still trying.
A returning Civil War veteran wrote the following observations:
“I asked God for strength, that I might achieve;
I was made weak, that I might learn humbly to obey.
I asked for health, that I might do greater things;
I was given infirmity, that I might do better things.
I asked for riches, that I might be happy;
I was given poverty, that I might be wise.
I asked for power, that I might have the praise of men;
I was given weakness, that I might feel the need of God.
I asked for all things, that I might enjoy life;
I was given life, that I might enjoy all things.
I got nothing that I asked for, but everything I hoped for.
Almost despite myself, my unspoken prayers were answered.
I am among all men most richly blessed.”
Thanks for the comment and highly valuable input for all readers.
ReplyDeleteI may be interested in the forms, but I wasn't in Tucson and don't know what the forms are for. ????
ReplyDeleteThe forms are meant to help you collect and provide the banks what they need to ensure the best possible relationship.
ReplyDelete