Do You Have A Bank Or A Banker?
In today’s challenging business environment, everyone is looking for the best price around to save a buck. Whether you’re buying detergent at the grocery store or shopping around for a brand new car, the goal is to get the best deal possible. The same concept should apply to your banking relationship. However, when providing a service there are the tangible considerations, such as fees. But there are the intangible considerations as well, or the value that comes with having a true relationship.
I come across many not-for profit organizations who merely utilize their bank to put money in and take money out. Yes, it’s very important to be competitive on monthly service and analysis fees as well as potentially earning money on the back-end in an interest-bearing account. You could spend countless hours “rate shopping”, but all you will have is a bank to put your money in. It is the banking relationship that will provide the intangible benefits to you and your organization over the long run.
Here are a few questions you should give consideration to when thinking about a banking relationship:
- When was the last time we had a quality conversation with our banker?
- Is our banker actually managing our account?
- How many banking relationships have we had over the last 5 years?
- When we have an issue, can we call someone we know directly or do we have a relationship with an 800 number?
- How long does it take for someone to respond when we have an issue?
- When was the last time our banker invited us to a networking event, made a quality introduction or went out of their way to truly add value to our organization?
All of these questions are essential when deciphering between the bank and the banker relationship. Any bank can offer you a working capital line of credit, term loan or commercial mortgage to buy or refinance a building. However, when things get tough (i.e. something I like to call a recession) or when your organization is growing and expanding, do you really have a relationship with someone who is going to help you through those challenging times and grow with your organization during the good times?
Contact Matthew at 847.517.8822 if you are interested in discussing your banking needs.