What are three actions you could take now to build a stronger relationship with your bank?
Jay McCabe
I’m a commercial banker at Comerica Bank and I partner with business owners, CEOs and CFOs of San Diego-based mid-size companies to help them execute their next phase of growth.
I recently had the opportunity to visit LEGOLAND. It caused me to think about building, and specifically building stronger relationships.
Building, LEGOs...I think you get it?
So what are three actions you could take now to build a stronger relationship with your bank??
#1 Understand your Loan Agreement
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If, at some time or another, you receive a commercial loan from your bank, it's important to understand the key provisions in your loan agreement including reporting deadlines, financial covenants, and other material terms.? This will help you stay on top of important items that may require you to communicate with your banker.
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#2 Schedule a Treasury Relationship Review
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A treasury relationship review involves a conversation with your banker to discuss the back-office operations of your company and determine ways a bank can help its operations run more efficiently.? The goal of the review is to identify opportunities for efficiencies and improving automation; ultimately making the business more scalable.? This type of review should be performed annually to address any changes in a company's operations.
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#3 Know and Communicate Your Priorities
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Every business owner, and their employees, should know an understand the key priorities for their company.? At least three to five priorities is ideal.? Communicating these to your banker is also important since it will help them in considering relevant ideas and solutions for your business.? For example, let’s say your goal is to expand production capacity or acquire a competitor.? It would be helpful for your banker to know this since they can advise the company on potential capital solutions and help it plan accordingly.
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Understanding your loan agreement, scheduling a treasury relationship review, and knowing and communicating your priorities.? These are three simple actions you can take now to improve your banking relationship.
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I hope you found some value in this article. If you have any questions send me a direct message.