By this time, you are well on the road to executing your strategic plan for this year. You spent time at the end of 2019 putting together your goals and aspirations for yourself and your business. You evaluate your client relationships – do they fit into your business model? Are they time consuming? Are they as profitable as they can be? Business owners should also evaluate their banking relationship, as this can have a profound impact on their ability to execute that strategic plan. Banks play an important role by providing working capital, equipment financing and real estate acquisition financing, which helps to continue to drive economic growth.
You should be continuously evaluating your clients to see if they are still well suited to your business. You should do the same thing with your suppliers, and that includes your bank. The banking industry continues to evolve. The consolidation (which is expected to continue) that has occurred in the industry of late has impacted many businesses. But it isn’t just consolidation that can impact on your banking relationship.
Here are some reasons your banking relationship might change:
Here are some things that the bank can do to make your relationship better, or more difficult. Some of these may push you to find a new bank. Some of them may be the result of changes in your company that make it difficult to find a new banking relationship.
But there are other reasons to consider looking around:
A banking relationship is complex, but it is a critical part of the way you run your business. The bank that you used to start your business may not be the bank you need today. You may need greater access to funds, or you may need a bank that can be more flexible – because your business is changing so rapidly. Take the time to talk to some other banks. You might be pleasantly surprised about what they can provide you, and the way your account will be managed. And that’s a good thing.
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