Developing a sound, long-term relationship with the professionals at your bank can help you grow your enterprise and maybe even develop new contacts. The information they provide is based on economic conditions in your local service area, as well as their knowledge about your particular industry.
To make the most of your relationship with your business banker, here are some questions to ask at the outset:
1. Will my company be assigned a single point of contact who’s familiar with my business sector? Client-centered banks recognize the community and business value of growing companies within the region. Some banks assign business relationship managers who review company activity and provide counsel on a range of business banking topics. Look for a bank that assigns a business relationship manager. Then, get to know each other well.
2. Are you familiar with my industry, our competition, the company’s value, and our plans for the future? The American Bankers Association® recommends that, before choosing or changing commercial banks, you talk to a business relationship professional to determine how much he or she knows about what you manufacture, or the value of the services you deliver. For best outcomes, work with a bank representative who understands where you are today, and where you expect to be in the future.
3. Will my bank relationship manager talk strategy? Share your company’s recent history, as well as anticipated future changes that may require capital borrowing. It’s important to keep your banker up-to-date on your plans for business growth and increased revenues. That’s how sound strategies develop.
4. What financing options does the bank offer? Your business relationship representative will review borrowing options based on the value of your company, your credit history, and other factors. Carefully review the types of credit available – from company credit cards, to term loans, to lines of credit that can be used as needed.
5. Will my bank relationship manager take a proactive approach to my company’s development? An open dialogue between your bank representative and your management team may generate new opportunities that can help grow your business, cut operational expenses, and identify mutually-beneficial connections between one or more businesses. Your banker knows the local business community and may be able to recommend a new vendor, a reliable sub-contractor, or other important contacts.
6. Is my business relationship banker accessible? Senior management should meet with your bank representative regularly to review strategies, measure performance, help assess success, and develop refinements.
Look for a bank that works with your company on a variety of levels, providing information, assessing current business activity, and helping to develop business synergies and strategies that may grow your company to higher levels of profitability faster.
