When it comes to the financial health of your business, who you’re banking with matters just as much as the size of financing you get and the amount of revenue your company earns. A bank that is a good fit for your company can save your business money in the long run and can save you time, as the bank will have an understanding of your business’ strategic plan and how it operates. A virtual CFO can help you find a bank and develop a strong business relationship with it.
Take the Time to Shop Around
Not every bank will be the right fit for your company. The bank you’re currently using for your accounts or loans may not be ideal, for several reasons. A bank that’s not doing well financially won’t have the funds or ability to give your business the financing it needs, for example.
Size matters when it comes to finding a bank, too. Ideally, the bank you end up working with will have experience dealing with small or mid-size companies. It’s easy to become lost in the shuffle if your company is a mid-size business working with a bank that is used to working with larger clients.
Keep Your Financial Details in Good Order
Your relationship with your bank can only be as strong as your financial details. If you don’t know what is going on with your company’s finances, it will be difficult for your bank to know and to provide you with the services you need. The team at New Direction Capital can help you create a strategic business plan and keep track of the day to day financial details, so that you can provide the bank with the information it needs to best meet your needs. A virtual CFO can prepare your company’s financial statements and explain them to you and the bank, so that everyone is on the same page.
Keep in Touch with the Bank
Communication is key to building and maintaining a solid banking relationship. That means keeping the bank up-to-date on any changes in your company, including any new hires, changes to the products or services you offer, and changes to the vendors your business uses. As your company’s needs change, how you use the bank will change, too, which is why it needs to be kept updated.
If your company is struggling, the bank should know that as well, within reason. When you have to give bad news to the bank, do so in a way that shows you are working on the problem, so that your overall relationship doesn’t suffer. The sooner you let the bank know of any issues, the sooner you can work together to come up with a solution.
You also want to keep up-to-date on what is going on with the bank. Banks can fall on hard times, too. Even if you’ve had a years or decades long relationship with one financial institution, if it should start struggling or be unable to provide the financing or support you need, it may be time to move on and find another bank to work with.
New Direction Capital has helped numerous small and mid-sized businesses establish and maintain strong, working relationships with banks. Reach out to us today to learn more about how we can help you find a bank that best meets your needs.