These days, banks are more than just lenders to small businesses. Most banks have small business divisions, where their staff are focused specifically on helping small businesses expand and grow. So itâ€™s important that you, as a small business bank, get the message across to your customers that youâ€™re not just a glorified ATM â€“ if they need more money, youâ€™ve got some tips to help them find it, without increasing their loan capacity.
Small business owners, especially if theyâ€™re considering an expansion project, are often surprised by just how much their own internal resources can be maximized to provide at least some of the cash they need. What you can do as their banking partner is sit them down and go through those options, before resorting to borrowing more money.
So hereâ€™s where you get to switch hats. Instead of talking about a small business ownerâ€™s assets in terms of collateral, you get to work out how they can be used to raise more cash.
Help your small business customers to explore all available financing options for their growth plans. Some suggestions you can make are:
Itâ€™s important for you as their small business banking partner to encourage their growth plans, but also to make sure theyâ€™re realistic. Will they have enough money to finance their expansion without impacting their core activities? So not only are you helping them to find more money using their own internal resources, but you can also gently restrain them if you think theyâ€™re biting off more than they can chew.
Here at TSBC, weâ€™ve got plenty of content around growth plans, cash flow management and raising capital. Get in touch with us so we can help boost your online content.