Part of being an effective leader of your small business is to be able to make sense of the numbers and to know that cash is king!  Understanding the role of banking in your small business is important because your business must be able to understand how to properly manage banking relationships and services in order for your business to expand and grow.

As an entrepreneur, having a sound banking relationship is an invaluable asset as you travel the journey of building your business.  In simple terms, banks are financial institutions that accept deposits and lend money.  Many banks have different appetites for risk and industries, so it is important that your small business is banking with a bank that can provide the level of service and care that you require as a small business.

  • Treasury Management – The treasury management department of a small bank can be an asset to you if you are using the bank for ACH payments and merchant services. You never know when there may be an issue with these services and it is always good to be able to contact your bank directly to handle these issues.  Many banks will hold deposits and when you are a small business, managing cash flow is an important issue.  Being able to talk to the treasury management department can help you to manage bank check holds so that you can better control your cash flow.
  • Banker and Loan Officers – Maintaining a sound relationship with your banker is an excellent way to manage your cash flow. The loan officers can be valuable so that you know what types of loan products are available.
  • Financial Products
    • Bank Term loan – traditional lending from banks can be some of the least expensive money in the marketplace but it is also some of the most conservative financing available. A traditional bank term loan is what most people re used to where there is a fixed rate and a fixed repayment period.  Many banks have different appetites for industries and risk.
    • Revolving Line of credit – a revolving line of credit will give your business the ability to pull money from a credit line on an as-needed basis. This is a convenient resource to help businesses when they need liquidity, such as for working capital and payroll.
    • Raising Capital – Investment Banks can also help a business raise money through equity or debt.

As a small business owner, it can be a daunting task to shop around banking relationships to see if your relationship is really the correct one.  We can help you with this so that you can find the banking relationship that will value your business the most.