Five Ways to Grow Your Business to the Next Level
When starting a business, your goals may be humble or sky-high. But whatever your initial intentions, business success often leads to business expansion and, surprisingly, growth can be one of the largest challenges for a business owner. Your banking partner can and should be a valuable ally in meeting and overcoming these challenges.
The right bank can help you address immediate business needs and plan for the future. Too often, businesses, particularly smaller businesses, don’t expect enough from their banking partners, perhaps because of time constraints or because they think this level of support is reserved for larger companies. But the right bank can help you grow and thrive in at least five key ways.
1. Working Capital
This is the lifeline of almost all companies. Without adequate cash flow, growing companies can literally grow themselves out of business. Most owners of growing companies have experienced the elation of a large new order only to fall into panic as to how to purchase the needed raw materials or pay for that extra shift of employees. In many smaller companies, credit cards and the owner’s personal capital usually bear this burden. As a company grows and matures, working capital lines of credit fill this need. These are based upon receivables and inventory, with repayment typically tied to the company’s cash cycle.
2. Term Loans for Expansion
Many times, a company’s growth can be limited to their capacity to absorb a new customer, finance the purchase of a competitor, or purchase capital equipment. Management often decides to only take on what they can process from internal cash flow. This is where term loans can provide an option for this growth. Appropriately structured, term loans can match repayment to the asset purchased, allowing the repayment to coincide with income and profits tied to that purchase.
In today’s world, companies of all sizes must take advantage of, and demand, top quality technology products from their banking partner. A business owner should look for a bank that routinely reinvests in their banking technology platforms, not just for the largest customer, but for all levels of business customers at all levels of product offerings. Single log-in capability to tie together multiple accounts, multi-factor authentication for wires and transfers, and mobile deposit capability are just a few of the products that company owners are utilizing to manage increased demands on their growing businesses.
4. Direct Access to Bank Decision Makers
While the technology landscape has certainly made its presence known in the banking world, business owners still want a face-to-face relationship with their banking partner. As companies grow, owners and management come to understand that to take their company to the next level, they must entrust others to be their partner in areas that are likely not within their core skillset. Banking is a key example. Business owners and managers should look for a banker who has decision-making ability, backed by a corporate banking structure that empowers local market responsiveness and authorizations. This is key to a company’s ability to remain nimble. Further, they should look for breadth, as well as depth, of experience. An experienced banker should bring a wealth of experience to the table and be able to assist business owners and managers in evaluating critical business—not just financial—decisions.
Company owners want to surround themselves with people who are as passionate about their business as they are. A true commercial banker revels in the opportunity to learn about a company owner’s passion and finds ways to increase that passion, safely, prudently, and with measured risk-taking.
Growing your company to the next level is an exciting challenge, and business owners should look for banking partners who are willing to grow with them. New products, technology, capability, and passion are a few of the hallmarks that one should look for in their business banking relationship.
To learn more about PlainsCapital’s business banking culture and services, visit the PlainsCapital Bank website.