Rose Report: Issue 63

Building Better Banking Relationships

By Ted Rose, CEO, Rose Financial Solutions

In the fallout of the collapse of Silicon Valley Bank (SVB), many business owners are looking at their assets, questioning their banks, and asking themselves, ‘is my money safe?’ During times of uncertainty, having a good relationship with your banker can mean the difference between your business thriving or closing.

According to the J.D. Power 2022 U.S. Small Business Banking Satisfaction Study, the most significant determinants of small business banking customer satisfaction are trust and people, and bank relationship managers play a critical role in both of these areas. Remember that your bank has a stake in your business’ success. Therefore, it is not only in your best interest but also theirs to have an open line of communication. Here are some tips on how to build a better relationship with the keeper of your money.

  • When searching for a banker, look for one with experience working with companies similar in size to your company and knowledge of your sector. Conducting an interview will help to ensure they are a good fit for your needs.
  • Ask specific questions such as: How can you help me reach my business goals? Should I get a business loan or a line of credit?
  • The more your banker knows about your business, needs, and goals, the better. Arrange an annual face-to-face meeting to discuss your concerns, review your financial statements, and discuss your goals.
  • Your banker is one of your most crucial allies in growing your business. When banks have an established relationship with a customer, they are more likely to offer them better fees, interest rates, loan structures, and terms.
  • The best time to establish a rapport with your bank is before you need to. Don’t wait until you have cash flow issues to contact your banker. Reviewing your financial reports, including KPIs, on a weekly and monthly basis will enable you to identify issues and take proactive steps to resolve.

During this unpredictable time, having the financial clarity needed to make sound business decisions is more critical than ever. At Rose Financial Solutions, we make managing, monitoring, and making sense of your financial balances and transactions easy with our upgraded Banking module through Easby®. Providing a host of advanced management tools and analytics for your banking, credit, investment, and debt activities, Easby lets you view your financial accounts, balances, and transactions, and quickly assess your cash flow.

For more information on our Banking module through Easby, please schedule a meeting below.

This content is for information purposes only and should not be considered legal, accounting, or tax advice or a substitute for obtaining such advice specific to your business.