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Tip: Mike Rorie of Groundmasters suggests that it really pays to get to know your banker before you need him, so when the need arises, he or she will be there.

One of the biggest mistakes landscape contractors and other business owners often make is they wait until the eleventh hour to request a loan, says Mike Rorie, president of Cincinnati-based Groundmasters. "Over the years, I've found it really pays to get to know your banker before you need him, so when the need arises, he or she will be there. If you know you will need money three to six months from now, call the banker now. Don't wait."

What Rorie suggests -- asking for something when you don't need it -- may go against human nature, but it works. One way to get started with a bank is to obtain a line of credit -- with two qualifications, he adds. "Consider getting qualified for a higher line of credit than you think you need (sort of like an insurance policy). And make sure to use your line of credit responsibly."

Being able to borrow money before you need it is not the point, Rorie emphasizes. What is the point is getting to know your banker before you have to. Go to a banker ahead of time, meet with him, and demonstrate how competent you are at presenting your business plan and other documents. All banks will put you through the ratio machine to determine if you can pay back a loan. Being competent and self-confident will give the banker more confidence in you, and that is the first big step toward lending . . . and borrowing money.


From Mike Rorie

Groundmasters, Inc.

Loveland, OH

mrorie@groundmasters.com