Chapter 1: Building Relationships Beyond Transactions

Building Relationships Beyond Transactions

This year, I’ve decided to begin a monthly series of articles focused on topics that have significantly shaped my professional journey and, over time, become integral to my personal life as well. My hope is that by sharing these reflections, I can provide valuable insights to help others approach these topics with clarity and confidence.

To kick things off, I want to discuss something that has been a cornerstone of my career: building relationships beyond transactions.

Over the years, I’ve been fortunate to work alongside some incredibly wise banking managers who championed the traditional, old-school approach to relationships. My work in the SME and Emerging Corporate markets has consistently reinforced one truth: relationships are the foundation of everything we do.

So how does a lender define relationships? The first step is to understand who you’re working with. Anyone who has worked in a lending role will be familiar with the “C’s” of credit. Some institutions teach three “C’s”, others teach five, seven or even nine. But no matter the number, the first “C” is always Character.

Character is the foundation for any lending decision. No matter how strong a client’s financials are (“Capacity”) or what securities they offer (“Collateral”), if we don’t trust the Character, we don’t lend a single dollar.

Assessing a person’s character requires multiple elements that include understanding their history and experience, ability to articulate the business, company culture, how do they compare to industry norms, were they a referral from trusted source, historic payment behaviours, credit checks, who their advisors are, and sometimes just an instinct honed by experience.

Unfortunately, some banks have shifted away from this principle, prioritising other “C’s” and adopting a more clinical, process-driven approach. This is especially noticeable in areas like home lending, where many clients feel frustrated by a “tick-the-box” mentality and the lack of commercial pragmatism.

This is why brokers, particularly in the commercial space, play such a vital role in bridging the relationship gap. Clients need someone they can talk to and trust, understands the facets of their business, someone who sees beyond the numbers and genuinely cares about their goals. A commercial broker is a professional, no different to an accountant or lawyer that prioritises the client’s best interest.

The second step is to build trust with a client, but it can be difficult especially early in the relationship. Trust isn’t formed overnight nor is it the result of the transaction (although a positive outcome certainly helps!). What truly builds trust is the journey you take together. Every client’s path is unique, and the road is rarely smooth. By offering sound advice, perseverance, and collaboration, even the most challenging journeys can be navigated successfully.

Building relationships beyond transactions often means:

• Providing honest opinions, even when they aren’t what the client wants to hear.
• Offering alternative approaches or perspectives. This includes sharing lessons from past experiences.
• Providing access to my other clients, advisors or networks that could help boost their business.
• Showing empathy for their circumstances and valuing their well-being beyond the transaction.
• Going the extra mile and putting in additional time.
• Maintaining open and consistent communication, even after the deal is done.

For instance, in my experience with hostile M&A transactions, the challenges often extend far beyond the transaction itself. Issues include hostility in family run businesses can have devastating effects on the family dynamics, divided staff loyalism, impacts on succession planning, and collaboration between advisors can create complexity if not aligned (you can be on the same boat but are you steering the same way?). Helping clients navigate these sensitive issues with empathy and clear advice has been key to earning trust and fostering long-term relationships.

When I look back at my career, many of my clients have become close friends. The one constant in those relationships? I stood by them during tough times, offering support beyond just professional obligations. That reciprocity of trust and care is what transformed these connections into lasting friendships.

I’m reminded of a timeless African proverb that captures this sentiment:

“If you want to go fast, go alone. But if you want to go far, go together.”

I hope this encourages you to reflect on how you can cultivate deeper, more meaningful relationships with your clients beyond the professional realm.

How do you maintain relationships beyond transactions?