PORT ANGELES — In the midst of the recession, bankers are encouraging businesses to learn the best ways to deal with financial institutions, especially with borrowing.

Three representatives of banks on the North Olympic Peninsula talked recession and offered tips at Monday’s Port Angeles Regional Chamber of Commerce weekly luncheon, which was attended by about 80 people at the Port Angeles CrabHouse Restaurant.

Gina Lowman, senior chief banking officer of First Federal, offered up five tips for business owners who are trying to get loans, which she said can be more difficult in tough economic times:

• Get to know bankers at several financial institutions.

“As a small business, it is important to do this because even if one financial institution doesn’t offer what you need there is probably one who can provide that service,” Lowman said.

• Be prepared to articulate your target market and how you plan to reach it.

“You could say customer service, but everyone says that,” she said.

“What makes a big difference to loan officers is how what you are providing is different from what is out there.”

• Think like a banker.

“If you come in and are ready to talk about the risks of operating in your industry, what the best scenario is and what the worst scenario is, it really shows that you have given it some thought,” she said.

• Develop at least two ways to repay the loan.

“The more you can assure the loan officer that the loan will be repaid, the more likely it is that you will not only receive a favorable answer, but also favorable rates — because those are set on risk,” she said.

• Don’t ask for loans that should be funded with equity.

“Banks aren’t in the business to take equity risks — we need to make loans that will be repaid on time,” she said.

Tim Mc-Laughlin, senior vice president of KeyBank, offered up several tips for those in or thinking about starting a business.

• Evaluate your bank and how well it’s capitalized and the rate strength.

• Manage the numbers.

“There are many tools that are very sophisticated and can help those starting in business,” he said.

“After evaluating the numbers, one customer realized that through reducing trips to the bank he could save $1,000 in expenses.”

• Get the most bang for your buck.

“Now that everyone is competing in the down economy, make sure to only purchase equipment that will generate revenue — efficiency is a valuable strategies as well,” he said.

• Waste not, want not.

“You want to make sure and streamline your business processes,” he said.

“One thing I’ve recently heard about is that [package deliverer] UPS found that just by avoiding left turns when possible, they could save something like 3 million gallons of gas.”

• Recession-proof your business.

“By choosing stability and analyzing your customers and costs, you can decide if this is the time that you might need to be reaching beyond your current customer base,” he said.

• Be smart with excess cash.

“By starting a rainy day fund — cash reserves — you can help the business achieve stability by planning ahead,” he said.

Lisa Meyer, Port Angeles branch manager for US Bank offered a suggestion for the state.

Noting an idea that began in Michigan, Meyer said Washington state could establish a small business reserve.

“This capital access program money is put into a reserve accounts where banks and small businesses can get funding where it is tight and cash flow is not where it should be,” she said.

“About 1.5 to 2 percent is put in by the lender, and the borrower puts in the same amount, and then it is matched by the Michigan Access Program.

“The pool of money covers loan loss reserves and gives people who wouldn’t have access to lending and it has resulted in an increase in jobs.”

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Reporter Paige Dickerson can be reached at 360-417-3535 or at paige.dickerson@peninsuladaily news.com.