Your business had a storybook beginning. It started as an idea on a cocktail napkin. World headquarters was the garage at home. And office hours were before sunrise to well past bedtime.
 Cathy Clark
You’re starting the next chapter of your company’s story, and that’s exactly when you should ask: Is my financial services provider on the same page? Or is it still serving the needs of a startup? And how do I know when I need more?
If you have a great relationship with your business banker, you may know the answers already because your banker is asking you the right questions. Yet business owners should know the signs that their business banking needs are changing and growing.
• Credit needs: As your company’s credit requirements increase and become more complex, talk with your banker to learn about the different services and options available to you.
For the growing business, credit lines and loans can be used to expand office space, purchase inventory, and finance receivables and daily operating needs. With rapid growth and significant working capital needs, your business may benefit from customized solutions, such as asset-based lending – secured by your business accounts receivable, inventory or other assets – and specialized equipment lending and leasing.
• Deposit relationship: As your company’s bank deposits increase, your business should receive ongoing account analysis services. This would include regular reports from your financial services provider that detail balances, trends and activity for all of your accounts. Also, when your business has higher deposit balances, your business banker should offer recommendations for actively managing your account, such as an overnight sweep service that routinely moves funds from your checking account into a higher interest earning account.
• New construction: When your business is ready to build or expand an office or plant, make sure your business banker is providing the support you need, such as exploring all options for financing the expansion and getting the best rates.
• Full-service support: If your financial services needs are handled by more than one provider, consider bringing all your business to one financial services company. As your business grows, a full-service provider can offer convenience. It’s likely you’ll also earn added value such as discounts and savings.
What’s more, as you grow, you will want a business banker who can access a full array of resources to help your business. Hiring more employees? Check to see if your provider has payroll services, and benefits and retirement plan consultants to assist. Looking to expand payment options for customers? Your provider should offer merchant card services. Are you ready to buy supplies or do business overseas? You need a business banker who can take care of issuing trade bank letters of credit to make it possible.
You’ll also want to ensure that your financial services provider offers comprehensive electronic and Internet banking solutions. These services save time, and they’ll likely streamline your processing for maximum return.
• Getting ready: The best way to know if you need more is to talk with your banker. Many new businesses miss opportunities to rise above startup status because they don’t ask for help. Some don’t take the time to develop and share business plans with a banker when they need access to capital. Others operate their business from a personal account instead of a business account – using up personal credit and home equity instead of building a credit history for their business.
The right financial services provider can be the key to helping your business reach the next chapter in its success story.
Cathy Clark is community banking president for Wells Fargo in Sioux Falls
575-4944
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