This post was provided by www.ResourceNation.com, a website that helps businesses find the best vendors at the best prices
In the course of running and maintaining your small business, you will open a business checking account, apply for a business credit card, and apply for financing. Your bank may assign a specific banker to your account or have it managed by their small business department.
While it seems like a menial aspect of your business, after you’ve signed up for your business accounts your bank will be very important to your business as it continues to grow. It is crucial that you maintain a relationship with your banker in order to take advantage of the many benefits they can offer your business.
A Trusted Financial Advisor
Meet with your banker regularly – every month or quarter– and go over your business’s finances. By analyzing your cash flow, balance sheets, assets, receivables, and payables, your banker can assess how healthy your business’s finances are.
- Your banker can provide you with expert financial advice, answer your finance questions, and help you find solutions to financial problems. They can be integral in helping you strategize ways to grow your business and reach your financial objectives.
Source of Business Contacts
Your business banker works and networks with a wide variety of businesses and professionals – and can be a valuable resource in connecting with them. By capitalizing on your banker’s knowledge and contacts, you can find prospective vendors and partners that will work best with your business. From CPAs and real estate agents to insurance companies and service providers, your banker can introduce you to the right ones for your business.
Better Financing and Loans
If you walk into a new bank and immediately apply for a business loan, your chances of receiving financing are low. But when you’ve developed and maintained a relationship with your bank over several months or years, you have a much better chance of getting a loan, because the bank already knows you and knows how your business finances work.
- Your business banker can not only help you put together the best possible loan application; they can also vouch for you during the loan process.
- In cases where your application is marginal, a good relationship with your business banker can be the key to getting approval.
Facilitate Transactions and Lower Fees
When you have developed a good relationship with your business banker, that relationship can become integral during emergencies or difficult financial times. If you overdraw your account or accidentally rack up other fees, a banker who knows you well can reduce or remove those fees (when appropriate).
If you need to make a fast wire transfer or obtain emergency financing after a sudden event, your personal banker can make it happen. It’s because they know you, your business, and your financial history, that they’re willing to help you out of a tight spot.
Testimonials on Your Behalf
Just as your business banker can point you in the direction of the right CPA or vendor, they can also point potential customers and clients in your direction. A testimonial from your business banker can help you find new customers and break into new markets.
Maintaining a relationship with your business banker isn’t difficult. Arrange a meeting to introduce yourself and go over your business’s finances. Check in with them regularly to discuss the status of your accounts and maintain an open line of communication. When you and your business banker trust each other, they benefit from your business and you benefit from their assistance and expertise.