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.
Reducing costs such as travel expenses, showing them smarter ways to use their credit cards, looking at leasing rather than buying equipment (and selling any un-used assets), and looking into what government grants and subsidies might be available are all suggestions you can put to your small business customers.
And then there’s you – the bank. 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.
The below article looks at other creative ways of raising finance.
Read the full article at: www.blackenterprise.com