What to look for in a bank relationship part 2: Bank Relationships

Friday, October 31, 2008

How do you go about nurturing a relationship with your business’ bank? And how can this effort result in better service for your business? Surprisingly, a close relationship with the bank and bank representatives can lead to a surprising amount of savings, both through better loan rates and discounted services. There are a few key points in creating this rapport.

The Importance of Bank Relationships
Bank consolidation is leading to bigger chains and fewer choices, meaning that creating a relationship with a bank and being a face rather than a number is becoming more and more important. Why? Loan rates can be negotiated and services like a line of credit and payroll deposits can be added for free or for a small fee. Bank managers have some leeway to offer deals when working with valuable customers and you can benefit from that practice.

How to Foster a Good Relationship
Your bank contact is a valuable business advisor. Offer business plans or other information that would help convey what your business is all about. Let him or her know about your plans for the business' future and ask about the financial aspects of getting there. And don’t forget to treat your banker as a valuable employee, taking time to learn more about him or her. A little effort can go a long way.

Additional Resources:
Buddy Up: How to Develop a Friendly Relationship with Your Bank - http://www.entrepreneur.com/money/moneymanagement/article22796.html
What’s New in Bank Relationship Management? - http://www.afponline.org/pub/res/news/ns_20040715_masson.html
The Importance of Building a Good Relationship with Your Bank - http://www.articlesbase.com/finance-articles/the-importance-of-building-a-good-business-relationship-with-your-bank-487499.html

Labels: Accounting, Budgeting, Finance Tips