One of the main reasons that banks develop relationships with small businesses is finance. Usually itâ€™s about lending solutions, but banks can â€“ and should â€“ cement their relationships with their small business customers further by offering finance solutions that arenâ€™t just about loans.
Itâ€™s no secret that successful banking relationships are based on more than just what loans are available. The best partnerships are when banks become more than just a lending solution â€“ they become trusted advisors.
So one of the best ways a bank can improve its relationship with its small business customers is to help them find creative ways to raise finance.
Itâ€™s one of the biggest challenges that small business owners face â€“ finding and accessing capital to grow their business. What a bank should be looking to do is guide them towards finance solutions they may not have otherwise thought of, such as:
Most banks are pretty flexible with their small business lending packages. It could be that just by sitting down with your small business customers, and discussing their financial needs, you can restructure their current loans to help free up more capital, without jeopardising the bank.
Help them to recognise their strengths and assets, and go through their business plan with them so that itâ€™s honed and up-to-date. Work with them to make sure theyâ€™ve got the right borrowing solution, and offer advice on things like what to do after theyâ€™ve landed a big contract.
At the end of the day, banking relationships are about so much more than just lending money. The more you understand about your small business customers and their businesses, the better placed youâ€™ll be to help them succeed.
Here at TSBC, we can offer you great content around raising finance creatively and helping your small business customers. Contact us on firstname.lastname@example.org to find out how we can help you.
Glen is the founder and CEO of The Small Business Company, a New Zealand based agency that specialises in helping banks communicate with small businesses through content marketing. He has written a number of books on small business principles and is a sought after consultant and conference presenter.