Most people get a physical checkup at least once a year. Such things as blood pressure and heart rate tell a lot about one’s health and the direction it is going. Why not do the same with your business’s financial health as well?
Sue Zazon, president and CEO of FirstMerit Bank’s Columbus region, says the idea of a fiscal — rather than physical — checkup is not a new one. However, it is typically overlooked in the rush to meet other deadlines.
“Many business owners get regular medical or dental checkups,” Zazon says. “Yet, when it comes to evaluating their relationship with their bank and bankers on a regular basis, they fail to do so. Periodic evaluations are a must for business owners.”
Smart Business spoke to Zazon about why the right bank and banker are essential as a company attempts to achieve its business goals.
Why are periodic evaluations with a bank important?
Regular evaluations are important primarily because companies evolve constantly. The banking industry is dynamic: consolidation and personnel turnover are constant within it. Therefore, it is important to assess your ever-changing needs and how your bank is meeting those needs.
As the business evolves, you need to evaluate if the bank can and/or will grow with you. You should ask whether your banker possesses the required skill set and whether the bank has the credit appetite and expertise to grow with your company and industry.
Banks and bankers — which are separate entities — need to be evaluated individually. You might discover that the banker may be right for your needs, but the bank is not. Or vice versa. You might have to change one or the other — or both — in your own best interest.
How do you know which bank to choose?
You should look at where the bank directs its money, energy and resources. Does the bank have a focus on commercial banking? If it does, what size companies does it serve best? A bank that focuses on very large institutional clients may not be the right fit for small or middle-sized businesses. A bank that claims to specialize in all sizes will be forced to spread resources over a wide array of clientele.
It is absolutely a necessity to have a bank that has accessible senior management and other decision-makers who can help process requests quickly, act as your advocate and respond consistently to credit needs.
