Are You Maximizing Your Commercial Banking Relationship?

Are You Maximizing Your Commercial Banking Relationship?

Selecting the best commercial banking partner for your business is an important decision. You want to choose a bank that can help you make the most of growth opportunities and, even more importantly, successfully navigate times of economic headwinds. 

Here are a few questions to consider when thinking about your lending partner:

• Do you know your debt capacity? Economic slowdowns can push companies into uncomfortable situations or create transformational opportunities. Your banker should be leading these discussions and walking you through your options.
• Do you know who approves your deal? Establishing relationships with executives early on may make future deal changes easier. Your banker should encourage and foster these important relationships.
• Is your banking relationship based on an aggressive pricing, loose credit structure, or a long-term mutual relationship? As your business changes from year-to-year, so can your banking terms and requirements. Ask your trusted advisors about the reputation of your current or potential bank partner, particularly in times of stress or challenge. Your banking partner should be able to help you prepare for potential risks and opportunities.

Additionally, your treasury partner should be helping you prepare for the future. Here are a few additional questions to consider:

• Does your treasury officer understand industry challenges? As your business faces different challenges, your treasury officer should be able to understand and deploy various solutions that will help you manage your cash more effectively.
• Is your bank staying ahead of the technology curve while keeping customer service a top priority? Your bank should have a dedicated product team that works closely with treasury officers to deploy best-in-class products. This team studies industry trends to identify technological advancements and heavily vets these technologies to ensure they provide the maximum benefit to their clients.

Whether you’re considering changing banks or want to prepare for the future with your current partners, asking these questions will help you elevate the relationship you have with your banker and better understand the role they can – and should – play in your company’s long-term success. ABI