Every business needs reliable service providers for everything from legal matters to branding. Banking is no different – a strong relationship with a bank can give you access to capital, improve your small business cash flow, and minimize monthly expenses.
If you’re looking to choose the right bank and create a mutually beneficial relationship with your financial institution, these five tips will help:
1. Pick the right bank
This is the first step in any successful banking relationship. You need to pick an institution that is conveniently located, with branches and operating hours that work for you and your team. ATMs are important too, especially if you will be relying on them for deposits and quick access to cash.
Also consider the bank’s operations. Do they offer technology like mobile apps and online banking that can improve your revenue management? What are their support hours? You should ask these and other questions before you decide on a particular bank to do business with.
2. Work with the same banking professional
If possible, try to develop a relationship with a specific banker at your local institution so that you can work with someone who knows your business and its needs. The more a banker gets to know your contracting business, the easier it will be for them to help with your banking. Once you’ve gotten acquainted with a banker, they may even be able to anticipate your future requirements as your business grows. A personal relationship with a single banker isn’t possible at every institution, but it can be highly beneficial for your business.
3. Consider their lending capabilities
You might not have a need for a small business loan right now, but what happens if you decide to expand or you get offered a large job that you need to quickly scale up to complete? Make sure you pick a bank that is able to grow with your business and can provide services you might need in the future, even if it isn’t for another few years. It doesn’t make sense to limit your growth by choosing a bank that won’t be able to support your needs in the long run.
4. Be specific about your goals and requirements
For a bank to sufficiently help its customers, they need to know about them. If you don’t provide your financial institution with the information they need, you limit their effectiveness. Your bank doesn’t need to know every facet of your business, but you should be upfront with them about all matters relating to banking: your schedule for deposits and withdrawals, how often you expect to receive payment, what kind of assets you have for collateral, and so on. The more information you can provide your bank, the easier it will be for them to assist you.
Working with the right bank is an essential element of success for any small contracting business. Choose your institution carefully and make sure you do everything possible to let them help you.
