So how DO you build a ‘banking relationship’?
By Deborah Jeanne Sergeant
A lot of small business advice encourages small business owners to build a relationship with a bank. But since there’s no business–bank dating app, how does that happen?
It may not be as complicated as you think.
As with finding a special someone, getting out and mingling with others in real time can often generate serendipitous encounters that can help you build a banking relationship.
“Bankers are very involved in the communities in which they work and live,” said Marc Valerio, financial services partner at The Bonadio Group, with New York locations including Syracuse and Utica.
“Whether it’s a local industry trade group or nonprofits and charitable organizations, it’s never hard to find networking opportunities to connect with local bankers. By being involved and active in their communities, small business owners and leaders are able to connect with these individuals and build longer term relationships.”
Larger banks may not be as involved or accessible around town; however, Valerio said that local, community bank personnel are often involved on the local scene and for good reason.
“Local community banks are strongly embedded in their communities and have a vested interest in the success of their customers and overall markets,” he said. “Often, there are more streamlined processes and decision-making, thus less red tape. Credit approvals do not have to go up to a distant national office and businesses generally have a direct line of communication with the actual decision makers.”
Many romantic couples meet because of a friend of a friend. In a similar sense, building a banking relationship can start from a place of association.
“Start with a bank that you are familiar with,” said John Halleron, advanced certified senior adviser at SUNY Oswego, retired and owner of JRH Business Consulting. “Be open, honest and clear about what your needs are on both the deposit and loan sides. When you are asked for information, provide it, especially year-end tax returns.“I never liked chasing customers for tax returns for their files. Simply have your tax preparer send a copy to your bank each year.”
Online banking has made moving money easier and more convenient than ever. There’s no need to drive over to the bank and wait in line, only to drive back to the office after the transaction. But in-person interactions can help your small business generate some trust between yourself and your banker.
“I suggest going to a couple of banks and finding a truly interested employee invested in helping you specifically,” said Tracy Chamberlain Higginbotham, founder of Women TIES, LLC in Syracuse.
She connected with someone she knew at M&T Bank who could help her with her business needs during the COVID-19 pandemic. This enabled her to tap into banking services she didn’t know about before and to stay abreast with changes in the banking world.
“You have to connect with someone who cares and proves it with constant interaction,” Higginbotham said.
Otherwise, your business could experience a one-way relationship with the bank.
Should you find your banking relationship sours, there’s no time like the present to get back out there and find a new bank to do business with.
