Today’s business climate has provided opportunities to many more business owners than ever before between social media platforms, the rise of work-from-home culture, the increasing need for additional income to support households, and resources available.
As small businesses start up, grow, prosper, and work through everyday challenges, community banks play a pivotal role by offering essential resources to help these businesses thrive.
How can a local bank help small businesses?
Relationships
One of the biggest advantages of working with a community bank is access to a local person with expertise on the local market and knowledge of your business. Bankers have many resources that can assist you with financing, cash management services, understanding industry trends, as well as facilitate connections with other local partners. It’s essential to have a team of trusted advisors who understand your goals to help your business succeed.
In addition to your banker, your team should include several other key individuals such as an attorney, a bookkeeper, an accountant, and an insurance agent. Your banker can help direct you to a team that works best for you and advise on when to incorporate them into your business. Another advantage of having a strong relationship with your banker is that they do not charge a fee for their services.
Banking
Banking encompasses more than maintaining a checking account. One of the top priorities for your bank should be accessibility. Does your bank answer the phone promptly to provide timely responses to your inquiries? When you own a business, time is money.
Additionally, does your bank offer products and services that assist your business with its growing needs? As your business expands, you might require enhanced protection against fraud or a locally serviced business credit card. Online banking and mobile deposit can offer your business remote access to your accounts. Lockbox services, a solution where your bank collects your mail for incoming checks, handle receivable processing, and make deposits on your behalf, can streamline your financial operations. Look for a full-relationship community bank offering personalized, responsive service that is capable of meeting the evolving needs of your business.
Loans
There are a variety of financing options such as capital expenditure term financing, operating lines of credit, business acquisition loans, ownership purchases, and construction and development loans. Your local banker will assist you in finding options tailored to meet your business’ specific needs.
They can also explore financing options such as SBA guaranteed loans, which offer enhancements for businesses that may want assistance with a longer payback period, or under-collateralized business loans. A community banker can guide you in selecting the best options for your business and assist you in filling out your application. Local banks offer personalized and hands-on support. Business loans can be intimidating to apply for, and your banker should be your ally who can assist you throughout the application process. Loans can require many documents such as projections, historical financials, andmultiple years of tax returns. If you aren’t prepared with those items, your banker can suggest resources to help you obtain them.
Bottom line, a local business banker embodies the roles of cheerleader, advisor, and supporter, functioning as an extension of your business and a trusted business partner. They will ask questions to get to know your business on a deeper level than the story that is on paper.
Teresa Jensen is the Business Banking Officer at Cedar Rapids Bank & Trust. Her direct line is (319) 743-7061.
