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Be honest with your lender
This is the second of two-part series on business expansion. The first part, “Research expansion capabilities before initiating growth”, can be found here.
If you want to grow your business in any way, it’s critical to have a strong relationship with your financial backer.
Tom Marx, CEO at Marx Group Advisors, LLC, says aftermarket businesses should be proactive in communicating with their banks and financial lenders in all situations. Day-to-day transparency grows the relationship between the two businesses, he says, which can help when topics like expansion are addressed.
TEC Equipment President Dave Thompson says his business can sometimes be quick to seize expansion opportunities through acquisition, and says the company wouldn’t be able to react that fast without its strong financial footing. Thompson says he works hard to keep his lender and OEM informed, and in doing so they are supportive and helpful in his quest to grow.
“I think those relationships are absolutely paramount,” he says.