What is the best bank for you? Hi this is Judi Otton with GrowthCast, and I’ve actually gotten this question a few times from clients and other business owners in the community and I thought I would share what I shared with them.
The first thing I want to say about choosing a bank is the most important thing about this is the relationship with your business banker. This is the person that’s going to be able to go to bat for you when you need it.
Now, how do you find a good relationship with a business banker? I point my clients and people that ask at regional banks. There are the great big multinational banks and for most small businesses, you’re too small. They’re not gonna care about you. I’ve heard horror stories during the pandemics about businesses with these banks not being able to get PPP loans because they couldn’t even get in the queue because they were you know, only a $15 million dollar business.
The small banks, the local banks are great, you can have wonderful relationships but what you’re missing there likely is the technology, the technology and the robust integrations with your accounting system, robust financial controls to provide security, are not really there for most of the local banks. There may be exceptions.
So again, I point my customers at regional banks. These midsized banks that operate in a couple of states or in the Northeast, there are probably some in the Pacific Northwest find a banker that you can have a relationship, someone that you have a little bit of chemistry with and do all of your banking there.
Another related question that I’ve gotten should I go to my bank for a loan or a line of credit or should I be going elsewhere? You should absolutely start with the bank where you have the rest of your banking relationship and again work with your business banker because they will be able to help you prepare the application and prepare the documents that is going to present your case in the very best light.
I’m not going to name names here but if you are interested in detailed recommendations or even an introduction to some fabulous business bankers, I have quite a few in my network and I would be happy to do that for you.
This is Judi Otton with GrowthCast and I’ll be back next week with a new Fiscal Fitness Tip of the Week.