What should you look for when choosing the right banker for your business?
1) Any banker that is worth his/her salt needs to have a firm understanding of your business. This knowledge includes a) having a good understanding of how you make money, b) it includes knowing who your main competitors are, c) knowing what differentiates your service or product offering from these competitors, and d) what your plans/objectives are for the future.
2) A good banker should be aware of all the services their bank offers and which ones may be of benefit to your immediate efforts. Additionally, they should make you aware of services they offer that may help you in the future.
3) They should be a strong advocate for you with their higher ups when you need a loan or easing of the bank’s credit requirements.
4) They should carefully review all of your quarterly statements that you’ve provided to them and let you know when they see potential problems with things like accounts receivables, debt to equity ratios, aging inventory, etc.
5) Finally, they need to visit your business every 3 months or so to discuss where they see the market heading and keep you apprised of any new developments at their bank. Hopefully, they’ll treat you to lunch afterwards.
A good banker can become a trusted advisor and helpmate in the successful running of your business.
Next Week’s Blog: Improve Your Chances for Bank Loans: