According to a recent
survey by Right Management, 75 percent of organizations involuntarily lost top talent in the past 12 months. While this type of movement may be good news to individuals who are thinking of changing jobs or looking for a job, it can be bad news for your banking relationship.
This is because the work experience of a business’ management team is one of many important criteria used by banks to determine the risk associated with a commercial loan applicant. Of course, bankers always care about the condition of your balance sheet and the condition of the market in which you operate. The experience and qualifications of the management team are also evaluated to help the bank determine the potential for a business to succeed and the team’s ability to judge opportunities and risks over the business’ life cycle.
If you are trying to expand your business or need to refinance to free up some working capital, it is important to be sure that you have strong, experienced people on your management team and that you are working to retain these employees. Retaining top talent will help your business in myriad ways on a daily basis and will provide you with additional credibility with your banker.