For personal and business banking, a lot of Entrepreneurs may have a favorite bank that they use. However, good business is having multiple options when banking. Banks provide a service, do not be afraid to shop around and see who has the best service to get you the best profit.
Build as many relationships as you can with banks and credit unions, to create at least 2-3 strong one banking relationships. Some banks offer better services to businesses, others will you a credit when others will not, and still others have lower fees. Many entrepreneurs fail to realize that what one bank will not do, another one will. You can have a great relationship with a bank, money in the bank and so much more, BUT still get denied for financing. Having a relationship with more than one bank allows you to be in a position to compare fees, and sometimes play one banking relationship against the other when needed.
You don’t ever want to get caught in a position of where you need financing, or anything from the bank, and they don’t provide it for you. You aren’t the banks only customer, so don’t get stuck on the relationship. Relationships help, but the other bank or credit union may be better able to give you what you need at that time. In fact, having banking relationships can get you pushed through to an approval by a bank manager, even when the account manager did not initially improve it.
To find multiple banks, build relationships, and see which one support your profit better consider the following:
- Who do I bank with now?
- Who can I start a new banking relationship with?
- Which banks cater directly to businesses?
- Will this banking relationship help my business growth?
- What are the pros and cons of each banking relationship considered?
Now… start building relationships with creating banking besties!!