You know choosing the right bank is important. Even more important is the relationship you have with that bank and your banker. They fill a critical role for your farm or business, so it makes sense they should be someone you trust and who understands you and your business. The right bank should be your ally, advocate and advisor. It can take time to find the right fit, but it’s worth it.
5 things to consider when evaluating a new bank:
1. Honestly assess your needs
Consider your personal needs and those of your farm now and into the future. Where do you want your business positioned five years from now? What are your personal long-term goals? The right banker will listen to understand where you’re hoping to be down the road. They should help you assess your growth potential and work to support business and personal financial growth.
2. Technology for the long-term
Thoroughly evaluate a potential bank’s technological capabilities. Many banks may offer the latest innovations but don’t ask the right questions to see if these innovations are right for you. The technology they recommend should help you manage your business better. If you’re a smaller operation, you may only need something like online banking to track transactions and move money between your business and personal accounts. Ask your bank if they have the technology you need for your business today, and as you grow.
3. Know your expectations and share them
Once you’ve identified several banks that meet your criteria for current and long-term needs, arrange for a banker from each organization to meet you and your team at your farm or place of business. A frank discussion of your situation and goals will help facilitate an understanding. With more information, those involved will better understand each organization’s goals, expectations, and capabilities.
4. Determine your potential banker’s passion for their business…and yours
Look for a banker who is passionate about your business. They will make a superior financial partner because they care about your success and they understand the unique nuances of your industry. They’re willing to go the extra mile to find banking resources and services that best fit your needs, personally and professionally, now and in the future.
5. As a business owner – look for experience
Banks often offer specialty areas, and you’ll want to look for one with knowledge in farming and agribusiness. The more a banker knows about your industry, the more they can tailor strategies and solutions to meet your unique situation. Your banker should be able to help you anticipate challenges, whether it’s government regulation or cash flow, and make helpful suggestions. One of the best ways to identify a banker who understands your industry is to ask other farmers with similar size operations for a reference.
The right bank provides more than money. It provides a true financial partner who cares about your business and your personal success. A good banking relationship supplies support, service, and structure – everything you need to succeed with financial matters.
Bob Moreland is the community president of Commerce Bank in Bolivar. Mo.
