There was a time when you could dial a direct line and your Banker would answer the phone, and he or she would have full authority to do almost anything you needed. Your Banker knew your business in detail and would likely be a trusted advisor. Well surprise, those days are back. Small community banks have brought back all the traditional relationship benefits plus many leading edge services that larger banks can’t offer. And they can do it at a much lower cost to their customers.
Why am I beating the drum for small local banks? The quick answer is communication. By having all the decision makers in one room and “in the loop” with your exit plan, you get answers in hours and not days or weeks.
The small local bank is just like you and me. Small! Their goal is for both of you to get bigger.
Is your Banker a website, an 800 number or a human?
I recently moved a Client from a large national bank to a small local bank. The Client has seven Squat ‘N’ Gobble sandwich locations with thousands of transactions and they make daily cash deposits from all locations. Core Business Bank in Bellevue is a small bank with a well-stocked vault. The Core President, Dave, and the Client Services Manager, Sheri, analyzed the business and the large bank’s processing costs line by line and saved over two thousand dollars PER MONTH in bank services fees.
Additionally Core Bank provided a bridge loan for immediate debt relief and worked as a team to consolidate seven existing loans into a two million dollar re-finance package. Once prepared, the loan was approved within ten days. The bank president, relationship manager and credit officer are all on direct speed dial. All attend regular planning sessions and look forward to funding the Buy/Sell for a new Owner.
Adding value is my main reason to be high on small business banks. Remember that every additional dollar that goes to the bottom line can be worth multiple dollars added to your selling price. In the above case the transition benefits from large bank to small bank with reduced service fees and much lower debt service equates to a twelve-month bottom line increase of one hundred and sixteen thousand dollars. The reduction in bank fees alone will add over one hundred thousand dollars to the selling price.
So how do you decide if a change is good for you?
- Every month you receive a “Customer Analysis” from your bank. This has all the activities and fees for your accounts.
- Call a couple Small Business Banks and talk with the President or Relationship Manager. ora human?
- Send them the Customer Analysis for the past three months.
- Be amazed at what comes back. Here are four Eastside Small Business Banks you may not be aware of.
Core Business Bank, Bellevue
Dave Huguenin, President & CEO
Foundation Bank, Bellevue
Pam Drexler, SVP Operations
Fortune Bank, Bellevue
Cheryl Gunderson, VP Relationship Mgr.
Puget Sound Bank, Bellevue
Jim Mitchell, President & CEO
Pick up the phone and call. A human will answer.
Learn why it matters.
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