How to Build a Banking Relationship as a Business Owner
Robins Financial Credit Union is dedicated to our mission to be Member Focused, Financial Partners, Community Proud. We empower our members with the financial knowledge and resources they need to make informed decisions and achieve their financial goals.
As a business owner, establishing and maintaining a solid relationship with your financial institution is essential for stability and growth. A strong banking relationship can provide you with access to funding, better financial advice, and tailored banking solutions that meet your business needs. We'll be exploring the best way to build and nurture a successful banking relationship that will support your business in the long run.
Find the Right Financial Partner
Every financial institution is unique. If you’re unsure where to start, check with other business owners you know and trust. Ask who they bank with and what their experience has been. Once you’ve narrowed down your search to a handful of potential institutions, you can start doing deeper research to find the one that best fits your needs. A good financial partner will offer competitive rates and suggest new banking products that will allow your company to save money, increase efficiency, and be more competitive in your market.
As a credit union, we’re a member-owned financial cooperative that exists solely to serve our membership. Being a not-for-profit institution allows us to give back to our members through lower rates on loans and higher returns on deposits, and as your trusted financial partner, our commercial lending team will provide expert advice to help your business grow and thrive.
Open a Business Account
Once you’ve chosen the right financial institution that best fits your personal and professional needs, it’s time to open a business checking account. Having a dedicated account helps separate your personal and business finances, making it easier to manage cash flow, track expenses, and file taxes.
When opening your business checking account, be prepared to provide:
- Business formation documents (e.g. Articles of Incorporation, LLC Operating Agreement)
- Employer Identification Number (EIN) or Social Security Number (for sole proprietors)
- Business licenses or permits
- Personal identification (e.g. driver’s license or passport)
Read our blog to learn the importance of having a dedicated business checking account.
Start Building Trust
Trust is a two-way street. For the team at your chosen financial institution to be strong advocates, they first need to understand your needs and trust you as a worthwhile partner.
Be transparent about your current revenue, and future expectations, so that you can have open and honest discussions about strategy and financing. If you have a future expansion planned, building trust will help to get your financial team on board and potentially better your chances of being approved for financing.
Maintain a Healthy Banking Record
Your financial institution is more likely to extend favorable terms and lending opportunities to businesses that demonstrate financial responsibility. Here are some tips to maintaining a healthy banking record:
- Keep Sufficient Balances: Avoid overdrafts and maintain an adequate balance in your business accounts.
- Make Timely Payments: Whether it’s loan repayments, credit card bills, or vendor invoices, timely payments build trust with your financial institution.
- Monitor Your Credit Score: Both your business and personal credit scores can impact your banking relationship. Do your best to keep them in good standing.
- Manage Cash Flow Efficiently: Use accounting software and business banking tools to track income and expenses.
Leverage Business Banking Products & Services
Your ideal financial institution should offer a variety of products and services that can support your business’s financial needs. Make the most of these:
- Commercial Loans: Establishing a healthy banking relationship with your financial institution can improve your odds of being approved for future financing. From construction, equipment, and commercial automobiles, we offer commercial loan options to help your business thrive.
- Merchant Services:If your financial institution offers merchant services, you can use this to accept credit card payments to streamline business transactions.
- Treasury Management Services: If you own a large business, you could benefit from cash management solutions like automated payments and fraud protection. Visit our website for more information about our Treasury Services.
- Business Credit Cards: Using a business credit card responsibly can help build your business credit score. We are proud to offer our Business Visa® Platinum credit card, allowing our business members to enjoy perks such as our Scorecard® Rewards Program, Travel & Emergency Assistance Services, and much more. Visit our website to learn more.
Utilize Digital Banking & Other Financial Tools
Many financial institutions offer online and mobile banking services, which can help streamline your business operations. At Robins Financial, we are proud to offer Commercial Digital Banking for our business members, allowing you to take control of your business finances anywhere, at any time. Use our digital services to easily:
- Transfers money between accounts
- Set up recurring payments to external lenders
- Use mobile deposit to skip the line and deposit checks
- And much more!
Communicate Proactively
Good communication is the key to a strong banking relationship. You can stay proactive by:
- Informing your banking team about major business developments
- Asking for financial advice on improving cash flow or preparing for economic downturns
- Seeking guidance on new banking products that could benefit your business
It’s important to keep communication open and honest. Consider setting up regular meetings with your banking team to ensure everyone stays informed and moving in the same direction.
The Bottom Line
Building a strong banking relationship as a business owner requires strategic planning, financial responsibility, and ongoing communication. By choosing the right financial partner, maintaining a good banking record, and keeping open dialogue with your banking team, you can create a partnership that supports your business’s success.
Looking for a financial partner? We’re here for you! At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members, and we are proud to offer a full suite of business products to help you and your business succeed. Need additional help? Call to speak to our dedicated commercial lending team by calling 478-923-3773 x.2240 today!
Read our other blog articles to help you gain the financial knowledge you need to succeed.