Everyone is looking for ways to cut costs and save money. And with things as they are, the banking industry may be making you consider a relationship with a different bank.
Whether or not you are satisfied with your current bank, abundant media attention covering the financial industry may inspire you to shop around. When was the last time you “interviewed” banks? When was the last time you considered your own business goals in relation to your bank’s objectives for the future?
“Before you decide to change banks, conduct an evaluation of what your business needs are today and what they may be in the future, based upon current economic conditions,” says Darlene Nowak-Baker, executive vice president and lending manager with First Place Bank. “Once you have figured out your needs, you can begin the process of selecting a financial institution that has a talented team to provide products and services to meet your needs.”
Also, prior to entering a new banking relationship, make sure you select an institution that will serve your business needs not only now but years down the road.
Smart Business spoke with Nowak-Baker about shopping banks and what to look for when you do so.
What must business owners do to prepare to ask the right questions when shopping banks?
Before you do anything, evaluate your own business. Where are you today, and where do you see the company heading in the next three to five years? What will revenue look like? Will you expand your facility, move to a new location, potentially add more products to your lineup or hire more employees? What are your immediate growth goals, and what are your objectives for sales/growth in five years?
Will your lending needs be great, or is acquiring capital not an issue in coming years? This is important because you want to make sure the new bank you partner with is equipped to handle your banking needs down the road. Be sure to ask this question.
Finally, spend some time defining your company culture and business philosophies. The financial institution you choose should share these mindsets. You will share intimate business information with your banker and should feel comfortable and on the same wavelength as him or her.