Can You Bank On Your Bank? By John Eubanks At Isnare.com Ezine Articles

A critical series of steps, checks and balances exists that you must address, in sequence, to make your corporation or LLC business credit worthy.

Your relationship with your primary lender (the bank that holds your business accounts) is one of the critical steps in that sequence. And while we can’t tell you everything today, the most important thing to remember is that this is a relationship.

Banks make money by lending to individuals and businesses. It is a myth they do not need your business! Banks understand their fundamental role in handling your business--by making loans and credit available to individuals and business owners, they are strengthening the local economy, as well as branding themselves as a local or regional bank that “cares.” By providing banking services in an efficient, timely and professional manner, they remove one less “worry” from your ever-revolving list of business concerns.

The following questions will help you determine how well you know your banker…and more importantly, vice versa.

- Do you know your banker by their first name? What about the teller in the business line?

- Does your banker know you by first name, or the name of your business by memory?

- Does your bank know what your business does or provides as a service or product?

If any of your answers is “no”, then you have some relationship work to do.

There are thousands of banks out there—each of which should have a vested interest (to some degree) in knowing you, your business, and the way you manage your accounts and affairs. Test the waters within your own bank by simply talking to the teller or business manager the next time you make a deposit or withdrawal. If you’ve never sat down with a representative to truly discuss your goals, needs and concerns, schedule an appointment.

And if you’ve ever made a serious call to your bank that went unreturned, or asked a question that went unanswered in a timely manner—then you owe it to yourself to consider switching banks entirely.

The point is, the better you know your bank, and the better they know you and your business, the greater the chance your relationship will bear fruit as your business grows, and your need for additional services like credit or small business loans arise.

As you might have guessed, how well you know one another is only the tip of the iceberg when considering which bank should hold your financial assets. How banks determine and use ratings, how assets and collateral mean different things to different banks, and how your history of revenue management comes into play are all legitimate concerns in this relationship—and it’s why our coursework and consulting services exist.

But without an initial comfort level with your bank, these deeper issues may never be addressed at all.

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