We asked a handful of banking experts for their top tips on fostering an effective two-way relationship with your business bank.
Bank manager 1:
David Robertson, head of financial markets & business finance solutions, Bendigo and Adelaide Bank
How can business owners improve their relationship with their business banker?
A business banker can be an asset to a business in many ways. It’s really valuable to establish a strong relationship with your business banker from day one, as a trusted advisor who has a clear understanding of your business goals and needs, with products and services that can support you to achieve your goals. While your business finances will be at the core of your dealings with the bank, the more your business banker understands your business, the more likely they will be able to meet your specific requirements.
So by developing a partnership with your business banker giving them a better understanding of your needs, better outcomes will follow for you. This may be in the form of financial products you may not have been previously aware of, and the expertise and service that can save you time and money.
What common mistakes do business owners make when dealing with their business banker?
Occasionally, some business owners might treat their business banker as an adversary, perhaps fearing a negative assessment, and so play their cards close to their chest. This attitude can make it more difficult to establish a cooperative working relationship, making it harder to benefit from the help your business banker can provide you.
Working collaboratively with your business banker with an open and positive outlook is much more effective, as you will not only benefit from their expertise, but also the extensive resources of the bank.
What makes a dream business owner in the eyes of the bank?
As the economic climate continues to be challenging, business bankers should encourage their customers to look more critically at their business – including their finances – to find ways to build a more sustainable business model now and into the future. This might mean restructuring business loans, reviewing merchant facilities or implementing risk management strategies, and doing this with the support of an experienced business banker is giving their business the best chance of growth and future success.
Bank manager 2:
Daryl Johnson, executive general manager, NAB
How can you make the most of your relationship with your business banker?
Having a strong relationship with a banker who understands your business can be a key factor in making the most of growth opportunities when they arise, as well as supporting you through any down times you may experience. First and foremost, your banker can advise you on the most suitable products for your specific requirements. Circumstances will differ for every business owner but if your banker understands your business, they can ensure lending is appropriate for your needs, competitively priced and advise you on how to keep costs down.
You should be able to turn to your banker for guidance and advice in navigating the peaks and troughs that your business will inevitably experience. They will be a valuable partner who helps you run your business and shares their insights. Bankers can also put you in touch with specialists throughout the bank who can help in areas such as cash flow solutions, foreign exchange and wealth management.
To get the most out of this relationship it’s important to stay in close contact and ensure your banker has the most up to date and relevant information. This means they can proactively help you make the most out of opportunities or help you solve problems before they arise. Conditions can be challenging for businesses given the multi-speed nature of the economy. Taking the time to discuss all of your business and personal needs and requirements will mean your banker has the essential information they need, and will be able to tailor the best solution for you.
Bank manager 3:
Doug Snell, general manager business banking and agribusiness, BOQ
How can business owners improve their relationship with their business banker?
The key to a great business owner and banker relationship is communication. If the relationship is treated as a partnership and both parties are proactive in communicating their requirements, plans and forecasts, it creates a great environment.
What common mistakes do business owners make when dealing with their business banker?
A common misconception with business owners is that when their business performance is on a downturn they should keep their bankers in the dark, at least until things improve. Early signals, such as days debtors drifting or liquidity issues, are the best time to let your banker know that your situation is changing, providing you both a chance to plan for the coming months.
What makes a dream business owner in the eyes of the bank?
A dream business owner in the eyes of a banker is someone who treats their banker like they would a family or staff member. A good banker will want to be seen as a trusted advisor to their client and although they may not have all the answers I am sure most will try very hard to provide the best outcome where possible. Lastly, a business owner that is acutely aware of and fully understands their cashflows and cash cycles will be proactive with their banking needs and banking relationship.
