Sad as I am to admit it, I have current clients that have at best mediocre relationships with their bank.

A couple of client’s in recent times have had their bank reduced “lines of credit” by at least half.  Where the banks were attempting to get the clients to leave the bank.

One of these clients went looking to potentially switch.  But they ignored my recommendations of banks that I had talked to about them and their industry, to the extent I am allowed without a “consent disclosure”.   The client did meet with one distant small local southern suburban bank.  The bank was not targeting my client’s industry nor specialized in their industry, so I am not sure really why the meeting took place for business reasons.  But the fit was never there so they were denied.  Now the client claims that all banks are the same, and is no longer looking to switch.  Which I believe is a long term mistake.

If a client is unhappy with their banking relationship I can and do make recommendations, but these recommendations are based on discussions with bankers.  I don’t believe that they are all the same.  Each has certain goals and industries that they want to get into or out of.  They have to evaluate risk, some banks have been in such financial straits that they were boarder line violated banking rules and regulation in how they treated their customers funds.

Banking is one of those five basic relationships that businesses have to have to succeed.  The other four major relationships for a strong small business to grow is with those of their attorney, insurance agent, financial advisor and most important their CPA.

 

 

Pin It on Pinterest