How can a positive banking relationship help a company grow?
When your business banker intimately knows you and your business, he or she will be aware of your immediate goals, as well as your long-term goals, and can assist you with a variety of products to ensure your growth and prosperity through many economic cycles. Your banker’s expertise and advice is a valuable resource that’s often left untapped. Whatever you want to do — launch a new line of business, expand into new territories, do business overseas, etc. — your banker has probably done it before. This person can share his or her experiences in those areas and help you avoid some of the mistakes or missteps that are inherent in a new venture.
Bottom line, your banker should be with you during the good times and the bad. He or she will be responsive, consultative and solutions-driven to help you grow.
When looking to expand your banking relationship, what are the first questions to ask your banker?
With the recent changes in financial institutions and the volatility of the financial markets, the first thing you should ask is: How safe and sound is the financial institution? Other questions to ask might include: What banking or financing products are available to support my short- and long-term goals? How can the bank support my business’s needs based on projected growth? Does the bank provide a cohesive set of services that address my business’s diverse banking needs?
What are some different or unique banking services that business owners may not know about?
Many banks offer a wide range of products and services that customers are usually unaware of, including 401(k) planning, asset based lending, foreign exchanges, specialty physician financing through MATSCO, factoring, business evaluations, workplace banking, private banking, wealth management services and cash flow management.
If business owners are happy with their bank, why should they expand their banking relationships? Are there consequences to keeping with the status quo?
It is always beneficial to allow business bankers to review your business’s current services and products to determine if they are deriving full value. It may be determined that alternative products could save you time and money. Even if your company is healthy and growing, it may be beneficial to expand your banking relationship. Again, it’s all about communication. Your bank needs to know you, your business and your industry, and understand the complexities and challenges of it all. In turn, you need to understand the bank’s expertise and its limitations. There’s not necessarily a consequence to keeping with the status quo, but if you’re not constantly and consistently communicating with your banker, a disconnect will surely occur and you could end up missing out on some great opportunities.
Trina Howard is a relationship manager and a vice president with Wells Fargo Community Business Banking. Reach her at (281) 282-2206 or [email protected].
