I'd like to share the benefits that many small business owners are enjoying by having a good relationship with their Bank Manager - and how your business can benefit too.
Bank Managers have been the butt of the occasional joke, but times are changing and it's now imperative for every small business owner to see their Bank Manager as not only a real person, but also as a valuable ally and resource for their business.
When you run a small business, banking needs to be done person-to-person, not between faceless organisations. A personal relationship with your Bank Manager can potentially open up a world of opportunities:
-
Pricing
Most Bank Managers have some discretion on pricing, ranging from the amount of up-front fees charged, through to the interest rate offered. It's human nature to look after those we know and relate too, so take advantage of this opportunity to save your business real money on bank fees and interest costs.
-
Flexibility
Every business needs flexibility from their bank at times. If you're calling up for something like a temporary overdraft on your account, it's invaluable to have a Bank Manager that knows you and your business, and feels confident to provide an approval because of this insight and relationship.
-
Service
The never diminishing workload of a Bank Manager means loan approvals and other requests are prioritised. The turnaround time on your request is likely to be far less if your Bank Manager already knows your business well, as this familiarity saves time.
-
Advice
Given there's an ever-growing array of financial products and services available to small businesses, your Bank Manager can be a wonderful source of free advice regarding account structuring, loan covenants and how to save on banking costs. Just remember to ask!
-
Protection
If your business hits a bump and there are serious financial problems meeting loan repayments on the horizon, your Bank Manager can be a vital voice and advocate for your business inside the bank, giving testimonials regarding your business to those higher-up in the bank. By championing the virtues of your acumen and ability to turn things around, they can potentially earn you valuable additional time to overcome difficulties.
So how do you get all these benefits from your Bank Manager?
Here are five easy steps that will see your Bank Manager become a valuable asset to your business:
-
Get a Bank Manager
It doesn't matter how small your business is, you must find a local Bank Manager that you can meet with in person. All banks may seem the same, but individual Bank Managers are far more unique, so find one that suits your style and understands your type of business.
-
Face-to-face
Bank Managers spend plenty of time on the phone with clients, but this is no substitute for seeing someone in person, engendering a positive relationship with a smile and a handshake. Establish this relationship through face-to-face meetings at the branch and don't forget to invite them out to your business from time to time. Then remember to pop your head into their office next time you're near the branch and give them a friendly hello.
- Keep them updated
Your Bank Manager will be in a better position to assist if they have a good knowledge of your business and its recent activities, so let them know developments such as new product launches or any potential problems and they'll be better positioned to assist.
- Return the call
It can be tempting to ignore a call from the Bank, but don't give in to this temptation. Return the call promptly as you normally would, showing your Bank Manager the respect you'd like to be shown in return.
-
Change is inevitable
Like any employee, Bank Managers change jobs from time to time. If you do get a new Bank Manager, be one of the first to greet them into their new role and help them get to know your business quickly, so that they're in a position to assist you sooner.
Spending time with your Bank Manager is an investment like any other business relationship. The dividends in this case can be enormous and mean that your small business has the right financial backing to grow into a large business one day soon.