It is critical when running a business that you avail of the services of a bank. Many businesses have a bank but do not have a banker. Nurturing a good bank relationship can lead to various benefits for your business that can help it grow.
1. Fees
Some banks have charges in place for the processing of payments. It is important to contact your bank to find out if they charge these fees or not. Having a good bank relationship can benefit you here because if the bank understands your business they may be able to manoeuvre fees or you could negotiate lower fees with them.
2. Funding
The main way to fund your business is through borrowing money from the bank. If you have already established a relationship with your bank then this will be a huge advantage in the borrowing process. The bank will already be familiar with your business so if it is seasonal then they are more likely to understand that revenue is low in summer but high in winter for example. Banks can also offer you better advice on what funding is best for you as they are familiar with your business. Without a sound business proposal to consider or an ongoing relationship, the bank will be less likely to lend to your business.
3. Advice
Your business can also benefit from advice given from the bank. They can identify potential business opportunities for you. As well as this if your business is struggling then the bank can become a financial adviser that can assist you in developing strategies to survive as they understand your business well.
4. Business Contacts
Seeing as banks work and network with multiple businesses and professionals in different industries, they can introduce you to these clients. From this your business may meet potential customers, suppliers or employees. It requires a very strong relationship for the bank to give such personal introductions.
To be able to benefit from a good bank relationship it is important to be professional and have a two-way conversation in order for the relationship to form. Even if your current business status is bad, it is important to tell your business adviser so that you have an honest relationship. We have created an entire guide on bank relationships that further explains its importance and provides you with a handy checklist.
