Many business owners turn to their
banker only when they need a loan,
but that can be a mistake, says Jamie Brotherton, senior vice president of
Ohio Commerce Bank.
Instead of viewing bankers simply as a
source of money, business owners should
develop relationships with them, viewing
them as valuable partners who can help
grow their business.
“They need to work together and communicate as to what that business’s financial objectives are and how they can meet
those needs going forward,” she says.
“(Bankers) need to be part of it so they
can understand what the business is trying to accomplish, what their financial
objectives are, maybe areas where they
anticipate growth.”
She says that by getting to know the
business, the banker is in a better position
to offer ideas.
“What they will do is they will offer solutions for them through offering appropriate
products or services that might meet their
needs,” she says. “It aids in the decision-making and problem-solving. If a company
needs to borrow money, it would simplify
or streamline the process. When someone
knows you, they know the issues the business is dealing with and facing on a daily
basis. That aids in obtaining financing for
your company.”
To ensure the banker is helping you
make the best decisions, never lie about
what’s going on at your company.
“People need to be upfront and open
and honest with the bank because the
banker is going to be a financial partner in
their business,” she says. “They need to
understand the good, bad and ugly. They
need to know the ups and downs so they
can offer good solutions for them.
“As much information as possible is
always helpful.”
Brotherton says poor communication
with your banker can hinder the decision-making process when a banker is looking
to extend credit or find other financial
solutions.
“The banker has to understand why certain things are happening,” she says. “We
as bankers can help businesses go to that
next level. We can offer suggestions for
dealing with economic life cycles because
I deal with different types of businesses.
I have the exposure to how they have
dealt with situations in the past, so it
helps us offer suggestions or advice to
other customers.”
To maintain that open communication
and to make sure you’re getting the most
informed advice, set aside time to meet
with your banker and be prepared to
answer questions. Arriving at the meeting
ready to provide as much information as
possible can go a long way toward
impressing the banker.
“Understanding things that have happened in the business that you can point
out, so the banker understands the economic life cycle of the business, like historical information, is always really
important,” Brotherton says. “It’s important to meet with the banker on a regular
basis.”
Therefore, don’t just schedule meetings
with your banker when you need something.
“A good banker should be meeting with
their clients quarterly,” she says. “If a
business owner can set aside time for a
banker to help them understand their
business goals and objectives, then that
just makes a solid foundation for expanding that relationship going forward.”
HOW TO REACH: Ohio Commerce Bank, (216) 910-0550 or
www.ohiocommercebank.com
Choosing a bank
When choosing a bank, a business
owner must consider a number of factors, including size, location and convenience.
Darren Nicolli, owner of Michael
Christopher Salon, says that before he
decided where to do business, he
shopped around and settled on Ohio
Commerce Bank because of its smaller
size. He says that while the bank has
fewer branches than a larger bank and
he has to drive further, the service
makes it worth it; when he needs something, the bank knows who he is, making
it easier to get things done.
But regardless of the size of the bank,
Nicolli says it comes down to loyalty and
honesty in dealing with a bank that helps
him daily.
“They knew if I was doing something,
the first thing I was doing was calling
them,” he says. “It’s a trust factor.”
When you have that loyalty and that
trust with your bank, you feel a lot more
comfortable when you are doing business or signing papers, Nicolli says.
“I never felt like there was anything
else they were having me do that I didn’t
feel good about,” he says.