Business Insights

Benefits of building a relationship with your bank

Your business banker can prove a mainstay of your success. Here’s how to start a relationship today for tomorrow’s success.

Owning a business can be a lonely thing.

That’s because few know what it’s like to walk in entrepreneurial shoes, whether it’s wingtips or heels in an office or steel-toed boots at a construction site.

“There are plenty of rewards to owning a business,” said John Anderson, head of Small Business Product and Strategy for Consumer Banking. “Yet a feeling of isolation often comes with the territory. It’s easy to suffer from tunnel vision in the day-to-day grind and to think you’re on your own.”

However, one source of guidance might be closer at hand than you think: A banker who truly understands the ins and outs of building a business.

More than transactions. Conversations.

If you consider a bank as where to keep your money—and little else—you could miss out. After all, with the right relationship, your business banker can prove a storehouse of wisdom, too.

“An experienced banker doesn’t have a narrow range of expertise,” Anderson said, “but the perspective that comes from serving a wide range of customers. From expansion and payroll to building credit and getting through the tough times, your banker could be your best ally when it is facing challenges.”

So, what are the benefits of tapping into this wellspring of knowledge and experience?

Personalized service

Equipped with a thorough, ongoing knowledge of how your business works, a banker can recommend the lending and banking products suited to your unique needs. That means recommendations based on your long-term plans for growth, not just getting through the next several months.

Better loan and finance opportunities

When it comes to financing, bankers can help you sort through options that include business credit cards, loans and lines of credit and SBA lending. Which ones are best for your unique needs?

“When it comes to credit, it’s been my experience that many entrepreneurs believe they’re on their own when it comes to figuring out financing,” said Anderson. “So, it’s important to think of banking as a toolkit, with each product designed for a unique purpose. That’s where a good banking relationship comes in. By taking a close look at your business, a banker can help you choose the right product for the right time.”

Internal advocate for your business

People do business with people, and banking is no exception. A solid relationship can open the door to the full range of expertise and resources at your banker’s fingertips.

“The longer a business banker knows you, the longer they have to think about increasing your odds for success,” Anderson said. “Sometimes that means knowing who to call to resolve an issue, or what expertise is needed. A strong relationship can provide access to a wider range of potential resources.”

Networking opportunities

It’s a given: the more people you know in business, the better off you’ll be. A wide array of contacts can translate into potential customers, resources and even potential friendships over time. When you have a relationship with a business banker, his or her entire network of relationships come with the territory.

“Many people don’t realize that a business banker is at the center of an entire world of business activity,” Anderson said. “From the small business starting down the street to the larger firm elsewhere looking for help with its expansion plans, an established business banker knows about business activity in your area—and who’s involved in it—more than just about anyone.”

While it’s not the job of a banker to play matchmaker with different businesses, a good introduction can mean a lot. They’re likely to know of legal, accounting and even real estate experts who could give your expansion plans a boost.

How do I strengthen my business relationship?

Trust is the foundation of all relationships. This holds especially true in banking. Because of the unique nature of the relationship between a business owner and business banker, it’s important to develop a connection based on transparency and communication.

Communicate, communicate, and communicate

First, it’s important to introduce yourself. It’s even more important to fully acquaint a banker with your current situation and future plans. The deeper and more sustained those conversations are, the better off you’ll be—and the better equipped your banker will be to provide solutions and timely advice.

The other aspect of communication? “Honesty is always critical for building trust,” Anderson said. “That means sharing both your good news and bad, along with plans for getting through the inevitable rough spots in the road. With the wealth of insight at your banker’s disposal, they might have a solution to a problem you might not even realize exists.”

Anderson offered one other pointer. “Don’t just have conversations with your banker when you need a loan. It’s a good idea to have frequent check-ins, often on a quarterly basis, just to keep them updated on your progress.”

Keep your books in order

The more accurate your financial reports, the more confidence you create. To build all-important trust with your banker, you should be able to provide your balance sheet, income statement and cash flow statements promptly. Even if your financial reports aren’t rosy, they provide vital clues on course corrections to make.

In fact, it’s a good idea to provide your business banker with financial reports on an annual basis. That create opportunities for dialog as well as the potential for an accelerated loan decision if the need arises.

Use your bank’s services

The more ways you use a bank’s services and products, the higher your profile. Beyond basic business checking and savings, there are lines of credit, merchant services, cash management tools and more.

Discuss goals and challenges

Bankers are people, too. It is their point of pride to help businesses grow and achieve. So, the sooner you enlist a banker to solve a problem or serve as your catalyst for growth, the better.

Make your banker your strategic partner

In short, a strong business banking relationship can provide the essential support and confidence needed to realize success—however you define it.

That means sharing your short- and long-term business goals, even asking for a reality check. With a unique perspective that comes from working with many different businesses in a host of different situations, a solid business banking relationship can bring extraordinary value to the table.

Are you ready to learn all the different ways your business can grow? See the Small Business section of Regions.com to learn more about creating your free, personalized Regions Greenprint® for Business plan and other services, insights and tools to help your businesses grow and achieve its goals.