Given a list of suggested topics for this month’s Advisors Desk, I chose the one that immediately triggered a personal response—How to Build a Strong Relationship with Your Business Banker. People who know me, professionally or personally, could tell you why. They understand the value I place on trust. They appreciate my efforts to earn their confidence. They have worked with me to establish connections fostering mutual respect and long-term collaboration. That kind of reliance and faith is what you should expect from your business banker.
One question I’m known to ask is, “Do you have your banker on your phone?” If not, why not? How many of you can walk into your bank and know with certainty the manager and/or at least one staff person really understands your business? If you walk by, will they wave or smile at you, even if they’re with another client? These opening queries are meant to prompt your thinking process; once your banking relationship strengthens, you should naturally begin to ask more nuanced and targeted questions about your business banker.
Before any relationship can begin, of course, you first have to decide which features are most important to you in a bank. Large institution or small community lender, they each have their advantages. A big bank is perfect if you’re certain automated systems work well for you. Let’s say, for instance, your debit card isn’t working. Are you comfortable and satisfied solving the problem by working your way through phone prompts and receiving a recorded response? If you value convenience and don’t mind relying on self-service options, these systems can provide quick resolutions without needing to visit a branch—a real time saver. Big banks have a wealth of technology and expertise at their fingertips and it’s reassuring to have those resources at your disposal.
Small banks, on the other hand, don’t have the same extensive infrastructure and assets in their operations. Instead, they offer a personal touch and the unique qualifications of their individual staff members. The human connection and tailored attention are wonderful and have the ability to build the trusting relationship I advocate. One point to keep in mind, however, is this: more often than not, these bankers know a little bit about many things, but they don’t know everything. Will they be able to give you the specific guidance you need?
Now that I’ve laid out the basic advantages and disadvantages to large and small banks, it’s important to note that both employ knowledgeable professionals committed to assisting customers with their financial needs. Whichever bank you choose, though, it will be up to you to discover the right banker for you—the one whom you can trust to be a steadfast partner in nurturing your business’s prosperity.
To help you do that, I’ve prepared a checklist of sorts. It contains actionable steps and simple strategies to help you identify the best banker for you and your small business. It comes to you out of my 35+ years in the banking and finance world:
- Represent yourself as a new or existing small business. If you simply ask for a business banker, you might get a commercial person who won’t do anything less than $100,000.
- Ideally, you’re looking for a small business banker who will serve as your center or contact person. They should be able to direct you to all the right resources.
- You want someone who will invest time listening to you and asking appropriate, thoughtful questions. That is a far cry from a banker who sits down, asks you a handful of questions, labels you, summarizes quickly, and then goes into a 30-minute spiel. Getting to understand as much as possible about you and your small business is a progressive thing. It takes time. Will your banker give it to you? Do they want to hear about your business, how you decided to open it, what’s most important to you, why you are passionate about it, etc.?
- Find a banker who will want to meet with you at least once a year on the business level—not the social level. By that I mean there are no disruptions and the banker is fully focused on what you are doing with your business.
- A banker who has your best interests at heart is going to ask you tough questions, such as: Are you making money? Do you have a net profit? What’s your cash flow? What’s your cash flow cycle?
- In the smaller banking world, the managers are usually the small business bankers, too. So, you get a two-for-one special. They’re usually specialists and can direct you and connect you with the right people for whatever you’re looking for.
- To begin building relationships with my banking clients, I have them put my name and number on their phones. I tell them it’s a two-way street where they can reach out to me if they have a problem, or they’re worried about fraud, or they need answers to a question or two. You should expect your banker to offer you the same service.
- Listen for comments such as, “I’m going to check with you in a week to see how things are going,” and, “Call me if you have a problem,” and, “What’s the best way I can reach out to you?” That’s a banker interested in you.
- Here are some of my banking red flags. If you encounter them, they could be signs the bank isn’t a good match for you: (1) The banker doesn’t make time for you or doesn’t acknowledge you two or three times after you’ve already met with them and talked to them; (2) It’s hard to connect with them. They don’t return your calls or respond to your emails.
From my perspective, trust is what’s most important in banking. Appreciating and respecting your banker play essential roles, too. If you’re looking for a small business banker, the steps and strategies I’ve outlined above will help you discover that right person. If you already have a small business banker, when is the last time you assessed that relationship? If it’s been awhile, take time to evaluate whether your current banker is providing the level of service your company truly needs. Use my checklist to guide your assessment. Every business owner deserves trusting, tailored, customer-focused service from their banker.
If you need help with anything I’ve discussed here or if you’d like to discuss my suggestions a bit further, please connect with me through LinkedIn or email me at [email protected]. I’d enjoy hearing from you.
John Anderson’s background is business management. With 35+ years in the banking and finance world, he provides expert guidance through his consulting business, Anderson Advisory Services. His passion lies in helping businesses optimize cash flow, secure funding, and develop sustainable growth strategies.
You are invited to attend attend his Milwaukee Breakfast Club meetups.