As a business owner, you know that finding the right banking services is crucial to your success. But with so many options out there, it can be tough to figure out which ones are the best fit for your company. This guide will help you match your business to the right banking services so you can get started on the path to success.
A Good versus Great Business Bank
When it comes to banking services for your business, there is a big difference between a good bank and a great business bank. A good bank may have some industry-specific knowledge, but they don’t have the deep understanding and experience that a great business bank has. A great business bank will have a team of relationship managers who are dedicated to helping you grow and manage your business.
A great business bank will have a full-suite of business banking services that are designed to help businesses of all sizes, in all industries.
Matching Your Business Needs to the Right Banking Services
It’s crucial that your company goals and operations are in sync with the banking tools you utilize.
Your Industry and Client Needs.
The first thing to grasp is that your company’s industry and customer requirements are two of the most important elements in determining which financial services may be helpful to you. If you have a business with many moving parts and a lot of inventory, for example, you might need a business bank that offers more sophisticated financing and cash management services than a company that sells professional services and has little in the way of physical assets.
On the other hand, if your customers are primarily other businesses, you may need specialized services, such as foreign exchange or documentary collections, to facilitate cross-border payments.
To get an idea of what might be helpful for your business, start by looking at your current banking relationship and seeing which services you are already using. If you’re not sure what’s available, ask your banker for a list of services that would be a good fit for your business.
Your Business Plan and Forecast
A well-written business plan will ensure that your bank provides you with more precise and useful financial service suggestions. If you don’t have a business plan, your banker can help you put one together. In addition to providing valuable insights into your company’s future, a business plan will also give your banker a better understanding of your current financial needs.
After reviewing your business plan, your banker should be able to provide you with customized recommendations for products and services that will help you achieve your goals.
Short-Term Versus Long-Term Needs
It’s important to remember that your banking needs will change as your business grows and evolves. As your company expands, you may need additional services, such as lines of credit or Letters of Credit, to support your increased sales volume.
On the other hand, if you are planning to sell your business in the near future, you may need different services, such as succession planning or transition planning.
A great business bank will be able to provide you with the services you need today and the services you will need tomorrow.
Maintaining Your Banking Relationship
This is critical to keep your banker informed. A professional business banker should proactively contact you on a regular basis to find out how you and your company are doing, but keeping up with your banker means providing updates (conversations) that will help your banker better understand your business situation and future requirements.
It’s a two-way street for business banking. The things you can do to ensure that your banker gives you the best possible business banking services as a company owner include:
- Even if you don’t need money immediately, give them a copy of your yearly financial statements.
- Invite a prospective banker to inspect your operations. Bankers enjoy getting out of the office and seeing how things operate. Be honest in your evaluation of our firm’s strengths and areas for improvement.
- Let them know if you’re planning any major changes in your business, such as an expansion, new product line or change in management.
- Keep them updated on any changes in your industry that could impact your business, such as new regulations or technological advances.
- Get a referral from your bank to people you want to do business with. Bankers are often willing to provide introductions because they tend to be acquainted with many individuals in the local business community. Several people you’ll want to meet should be familiar with your appropriate banker.
Whether you are looking for a new business bank or trying to get more out of your current relationship, it’s important to find a bank that is the right fit for your company. By taking the time to understand your business needs and goals, you can ensure that you are getting the most out of your banking relationship.
There When You Need Us
Contact our Business Relationship Bankers to discuss your company’s requirements now. Our financial professionals work with you to develop a strategy that works in your company’s best interests.