Hack to grow your business: Maintain a banking relationship

When was the last time you spoke to your bank about your business? If it’s been a while, we recommend touching base at least once a month. See below why it is to your advantage to have a banking relationship and tips on how you can easily maintain it!

Why maintain a banking relationship 

  • Banks have insight and experience in every industry, meaning they can see opportunities you may not Be sure to share your business plan that articulates your finances, your customers, your suppliers, known facts about your industry, and a detailed explanation of what you do.
  • Your banker is the gatekeeper for your business to receive funding. By having a strong relationship with them, you build trust that can help you get cash for your business with preferential rates and terms.
  • Keep in mind banks genuinely want you to succeed as it is to their advantage and, therefore, yours. If you maintain a banking relationship, you will have another team member.

How to maintain a banking relationship 

  • Before you commit to a bank, it is vital to shop around looking for the best fit. Consider if potential banks have dealt with companies of your size and in your industry. By shopping around, you will save money and time in the long run.
  • Once you choose a bank, state what your short term and long term plans for your business are. The more they know, the more they can help you reach your goals by setting achievable milestones. You want to show them that you are reliable and can hit targets.
  • Keep your bank updated. Let them know about new hires, products, revenue streams, and expenses. Go in person for the update meetings if you can. It is equally important to update your bank on not so good news, such as not being able to make a payment. It is better to tell them in advance so you both can work on a recovery plan.

As a business owner or CEO, it is hard to know what information to give to your bank and how to communicate financial data. We can help you create a business strategy to show your bank and update them as you grow! Email us at hello@getupgrow.ca to learn more.