One of the aspects of managing a small business is that you have to set up a business checking account. You’ll probably get a business credit card and seek financing too. There are two things that the bank may do. It may appoint a specific banker to be in charge of your account, or it may place it under the small business department. Either way, it’s pivotal that you be in good terms with your banker because of the following perks:
You’ll come to realize that your banker is full of financial advice and will tackle any finance questions as well as help you pin solutions to any financial problems that you may have. For this reason, meet with your business manager regularly to have a look at the business’s finances. Your banker will evaluate the health of your business’s finances by taking a look at the balance sheets, cash flow, assets, payables, and receivables. By engaging your business manager, you’ll be able to come up with strategies that will help the business grow and hit financial goals.
As you run your business, you might urgently need a real estate agent or a CPA. Your banker might save you on this by suggesting one of these professionals. Business bankers tend to network widely with various professionals and businesses and are thus a walking directory if you engage them. Plus, they can also help you find partners and vendors to work with and who will benefit your business.
Financing and loans perks
If you are new to a bank, your chances of landing a loan might be slim to none. On the other hand, if you have a relationship with the bank of say, months, or years, you will be more likely to get a loan because the bank knows you, and it has tabs on your business finances. In addition to securing a business loan, your banker can help by vouching for you. And when the application is marginal, the business banker can help secure approval.
In the same way that your business manager can lead you to vendors or CPAs, they can also lead you to potential clients and customers. And with a testimonial from them, you might land a new customer and get into a new market.
Being close to your business manager will undoubtedly pay off in the long end, and it doesn’t have to cost you an arm. By setting regular meetings to go through your finances, you’ll build trust, and your business will benefit from this.