Successful businesses need successful relationships. Everyone in the company, from front-line workers to the C-Suite, must develop close relationships with customers, vendors, colleagues, and local communities for the business to thrive.
However, there is a common bond we forget: business bankers.
Business bankers represent their bank, of course. But they’re also your champion. A worthwhile business banker advocates for the success of their client – you! – because that ultimately leads to a more successful community, which in turn helps to support the bank.
Finding Your Business Banker
Every bank, and banker, is unique. Start your search with other business owners you trust. Ask about their banking experiences. Once you narrow the list to a handful of candidates, meet with each of them.
When you meet with potential bankers, ask questions:
- Are they familiar with the local economy?
- Do they understand your industry?
- Can they provide case studies that break down their results?
- Will they connect you with other clients you can speak to directly?
Trustworthy business bankers offer competitive rates and suggest new banking products that help your company run more efficiently and compete more vigorously in your market. They’re invested in your short-term and long-term goals and will put their entire team in motion to help you reach those goals.
Communication is Key
If you only call your banker when you need a loan, you’re missing out on valuable insight and advice. Regular chats to discuss your business keep both of you informed and ready for any unexpected changes.
Set up a meeting agenda with your banker. Decide what the objective for the meetings should be and what information you are looking to learn – or share. Be open to sharing concerns, opportunities, and expectations.
These meetings are a great time to disclose financial information, both good and bad. Additionally, ask for an assessment of your borrowing capacity if you need financing for operating costs or expansion. Finally, ask for industry comparisons so you better understand how your company stacks up against others when comparing financial ratios.
Trust is a Two-Way Street
For your banker to be a strong advocate, they first need to understand your needs and trust you as a partner. As we outlined above, much of this trust is built through communication.
Share who your key employees are, the value they bring, and how your company is succeeding. Be transparent about your current revenue, and future expectations, so that you can have open and candid discussions about strategy and financing.
If you have an expansion planned, and your banker is on board, they still need to sell that plan to their internal credit team for the loan to be approved. That process is much easier if the banker is already confident in you and your business.
If you have a dedicated leadership team or C-Suite, reserve time at least once a year to have your banker meet with them. Spend time brainstorming ways in which the company can grow. An idea-generating session is a great way to help build trust with your banker and showcase the depth of your team.
Show up Prepared
When meeting, bring copies of your finances – paper or digital – for both of you to review.
Your banker will work closely with you to sketch out likely scenarios based on your industry and current markets. It’s also great to work out sales forecasts for the next 6, 12, and 24 months with an eye on your expected cash flows. The cash flow is critical because that’s what you’ll need to repay the financing you get from the bank.
If your banker isn’t already familiar with your industry, help them learn about it, and how you expect your business to succeed within that market and against competitors. The better they understand your industry, the more helpful they can be in helping you to grow.
Know your market share and explore ways that, with the banker’s input, you can expand your reach. Ask for — and expect — ideas and strategies from your banker on how to improve financial results. Remember, your banker is your financial partner and should be available to provide advice, counsel, and solutions.
Contingency and Succession Planning
Create an action plan for possible economic downturns and market shifts and be open to sharing these plans with your banker. They can help you understand the risks in your business, such as the potential loss of key customers or a shift in product/service demand.
Should illness or some other crises prevent you from working, succession planning can ensure your business continues as uninterrupted as possible. If the plan includes current members of your leadership team, introduce your banker to them and create opportunities for them to work together.
Be honest and upfront with your thinking and planning. Use these discussions with your banker to gather more input and ideas that can help you survive a crisis.
How Starion Bank Can Help
Building a solid banking relationship, and strengthening it over time, will pay big dividends for you and your company.
If you’re just beginning your search for a business banker, or you are open to a new perspective, Starion Bank business bankers are here to help you maximize the potential of your business.
Click here to find a Starion banker and schedule your appointment today.
