1. Effective Telephone Techniques to Secure Bank Information

Of course telephone contact is much faster than relying on written communication. However, some banks will only supply information upon written request. The best results are achieved on the telephone by the more experienced personnel. One can expect a lower level of the quality of response to inquiries that are made by those who are at a more clerical level. Senior level personnel can permit the more junior level of credit personnel to listen in on an extension for training in the use of telephone inquiry techniques. 

One can expect to sometimes have to make several calls before reaching the account officer to obtain information about the applicant company. Often, bank employees are reluctant to release sensitive information over the phone. Bankers often ask trade creditors to put their requests in writing. As an expedient, creditors might want to fax their questions to the account officer. 

Some tips: 

1. Some banks never provide credit ratings to trade creditors. Instead, they will rate only to another bank; the creditor must arrange for its bank to contact the applicant company’s bank for a rating. 

2. Another popular twist involves banks charging creditors a fee to provide references on their clients. These fees typically range from $10 to $25. Caution: Paying for the bank reference does not make the reference any better or more detailed than one given for free. 

3. Prior to the call, completely familiarize yourself with account information so that you will ask intelligent and knowledgeable questions. Have the complete account file on your desk at the time of the call. 

4. Try to get the actual account (or loan) officer who handles the client’s account. Avoid speaking to secretaries or clerks who are merely familiar with the account and have little to do with the granting of credit to the client.  

5. If the client’s file is marked restricted or the account officer is unwilling to rate or provide you with relevant information about the customer, you might call the applicant and ask him or her to contact the banker to give permission for the account officer to answer your questions.  

6. Tell the bank officer your name, your position, the name of your firm and its location. State the purpose of your call. Bank officers get scores of these types of calls each week and know the type of information you can use.  

7. They should tell you the following information readily: a. Average cash account balance b. Secured loan balance c. Unsecured loan balance. Repeat that information over the phone so that you are sure that you have it correctly noted.  

8. Using a professional manner, ask about the type of collateral used for secured loans, the credit limits the bank extends on various types of loans, guarantees and other possible loan data.  

9. Ask about the loan pay-back history. “Satisfactory” means that loans have been liquidated on time. “Good” can be taken to mean that loans were liquidated prior to the due date. Try to elicit a distinction.  

10. Inquire as to whether loans are cyclical or seasonal.  

11. Ask bank officers if they have any other comments about the account, remembering that they may be hesitant about weak situations unless they are confident that you understand “generalizations.” Be alert to grab the significance of well-chosen words.  

12. Remember to thank the banker for his or her time and assistance. It is not only the right thing to do, but you might need the banker’s help again in the future.

"The question is, 'What did the private equity company bring to the table, besides the acquisition money and then a big load of debt?'" she says. "That information is usually available in the private equity company's portfolio, which is posted on the Internet. If the company has been in our line of business for awhile or has been successful with other acquisitions in our field, we can be somewhat comfortable." But with these debt loads, you never really know."