Recently I attended the one of the Breakfast Series sponsored by the Austin Family Business Program. The topic for that particular event was Family Business Banking for Long-Term Success. The presenters gave 5 tips on issues to consider when choosing a bank for you and your business.
1. Do you know your bank? Your bank knows your business, but do you know your bank's business? How is the bank rated? What is its capital structure? What is the bank's balance sheet? Do you know its rating on Bankrate.com?
2. Bank with the smartest person in the room. You want to know that your bankers are qualified and understand business, especially your business.
3. Do you know the decision makers? You should know who is the decision maker for your business. Have you met the underwriter? Do they understand your business? Does your relationship manager understand your business so that they can be an advocate for your business?
4. Ask your banker for a reference. You should talk to other customers and find out what their experiences have been with the bank - during good times and bad times. What support has the bank given them?
5. Don't make the decision based on price. Your bank should be a partner for you in your business. Who is going to be the best partner for you for the long-term success of your business.
