SBI spoke with TowneBank banker Cecil Hobbs to discuss a few strategies for small business owners when working with their banks. Here, Hobbs gives a few pointers on how to better interact with your bank.
SBI: What is the best way to find a business banker?
CH: Just as you would with any other line of business, look for referrals from trusted sources that have prior experience with that banker. That way, you are getting a warm handoff from someone that has past experience with that person. Also, research the experience of your banker and make sure he or she appears to be knowledgeable. Finally, find out who handles your line of business within the bank. If you are in a specialized area, such as government contracting or real estate, find out which line of business fits you best. While your branch banker may be a nice person, he or she might not be the right person for more sophisticated transactions.
What questions should you ask when searching for the right banker?
Well, asking generic “interview” questions won’t get you where you want to go. I would look for referrals, then talk with those bankers conversationally to see if it is a good fit. You should already know if they are qualified at this point. “Is it a good fit for you and me?” Use the backdrop of your business, then ask yourself “How does that match up with me?” and “Does it look like this person is going to help me grow my business?
When should you seek a business banker?
Before you need it. Many small businesses may never need credit, others may need it down the road. Others might be getting ready to take on contracts, buy buildings, etc. Those businesses should be getting to know the banker long before they need that loan. Asking your banker to give you strategies on how to approach him or her when you are ready is a great plan.
What can a business banker do for owners than a CPA or financial manager can’t?
We have the money. We create your credit facility. While we are not a paid advisor, we bring to the table not only the credit you seek, but the array of financial products your company may need. Basic checking, merchant credit accounts, corporate lines of credit, commercial real estate investment are all sample products you may need. Many banks have
mortgage investment, insurance and other financial service companies within their organization. Having a banker as a resource allows you to capture the strength of all of those affiliates for your business needs.
