Starting and running a business is an exciting and rewarding endeavor, but it comes with a lot of responsibilities, including managing finances. One crucial aspect of financial management is selecting the right business bank, which can have a significant impact on the success of your business.
Making that selection can be a challenging task. It is important to carefully consider the financing options, account types, electronic services, fees, and service levels offered by each institution. Additionally, it is important to consider the bank’s approach to customer service, as some individuals may prefer the anonymity of a large bank while others may value the personal touch of a smaller community bank.
While most financial institutions offer similar product offerings, the way in which these products are delivered can vary greatly. Larger banks and online financial institutions may offer more convenient online application processes, while smaller community banks may offer more personalized service and customized solutions.
It is important to remember that no bank can be all things to all clients, and not all banks are created equal. Each institution may have a different focus and core competency, making it essential for businesses to ensure that the bank they choose is a good fit for their specific needs.
DO SOME RESEARCH
Before choosing a bank, it is important to conduct research to determine the bank’s strength, health, and direction. This can be done through a quick internet search, which can provide ample information about the philosophy and focus of various institutions. Once you have narrowed down your choices, set an appointment with a relationship banker to learn more.
During this meeting, ask questions about the bank’s interest in establishing a relationship with your business, the array of products and services offered, and the bank’s willingness to be honest and transparent about your financial situation.
WILL YOUR BANK SERVE AS A TRUSTED ADVISOR?
As a business owner, managing finances and making strategic decisions can be a daunting task. In fact, it is one of the most common challenges that many business owners face. From understanding financial statements and tax laws to identifying growth opportunities, the world of business finance can be complex and overwhelming. That is why many business owners turn to trusted advisors for guidance.
A trusted advisor is a financial professional who provides guidance and support to business owners as they navigate the many challenges of managing their finances and making strategic decisions. Whether it is a CPA, financial planner, or business banker, a trusted advisor can provide valuable insights, resources, and expertise that help business owners achieve their goals and succeed.
One of the key benefits of having a trusted advisor is that they can help business owners navigate the many challenges that they may face when managing their finances and making strategic decisions. Depending upon their area of expertise, a trusted advisor can help business owners identify their strengths and weaknesses, understand their financial position, and develop a strategic plan for success.
Another benefit of having a trusted advisor is that they can help business owners prepare for major transitions, such as mergers and acquisitions, succession planning, or exit strategies. These transitions can be complex and emotional, and a trusted advisor can provide guidance and support as business owners navigate these important decisions.
Over time, the relationship between a business owner and their trusted advisor typically evolves. As business owners gain more experience and expertise, they may require different types of guidance and support. By staying in communication and working together, both parties can ensure that the relationship remains productive and beneficial.
Looking to the future, the role of a trusted advisor is likely to become even more important as businesses face new challenges and opportunities. With the rapid pace of technological change, evolving regulatory landscapes, and uncertainty in the economic forecast, business owners will need guidance and support to navigate these complex issues and stay ahead of the curve.
ACCESS TO FINANCING, TOOLS, AND RESOURCES
While establishing a relationship with your bank is perhaps the most important factor, there are other aspects of financial management to consider starting with access to financing. As a business owner, you may need a loan or line of credit to fund operations, expand the business, or manage cash flow. The right bank can offer a range of financing options tailored to your specific needs that can help achieve your goals.
If your business accepts credit card payments, you’ll need a merchant account to process those payments. Choosing a bank that offers merchant services can simplify the process of accepting payments and managing transactions. You may also be able to get a better rate for credit card processing fees by bundling these services with your business banking.
With the rise of online banking and digital tools, it’s important to choose a bank that offers modern and convenient banking services. This includes online banking, mobile banking, and access to digital tools that can help you manage your finances more efficiently saving you time and money in the long run.
Another important factor to consider when choosing a business bank is customer service. You’ll want to work with a bank that has a reputation for excellent customer service, which can help resolve any issues or concerns quickly and efficiently.
IS IT A GOOD FIT?
Having a relationship with your banker is invaluable, as a good banker can serve as a Trusted Advisor who is invested in the growth and success of your business. There is tremendous value in working with a client-focused, relationship-driven bank who will invest the time necessary to get to know your business and understand its unique needs. By developing long-term relationships with bankers who demonstrate expertise, experience, and dedication to your success, you can set your business up for lasting success.
Tamara Gurney is president & CEO of Mission Valley Bank, a locally-owned, full-service, independent community business bank headquartered in Sun Valley, with a business banking
office in Santa Clarita.
For more information, visit MissionValleyBank.com or call (818) 394-2300.