Jul 5, 2023 11:30:00 AM | Financial Goals Why Your Relationship with Your Bank Matters in Business Planning

The U.S. Bureau of Labor and Statistics reports that 20% of new businesses fail within the first year of operation and 30% do so within the second year. But why? A few reasons:

  • Inadequate capital or funding
  • Poor management
  • Unsuccessful marketing initiatives
  • A faulty infrastructure or business plan

A solid business plan is central to starting, developing, and growing any size company, but for the survival of small and mid-sized businesses it is crucial. Without clearly identified objectives for the future of the business (and what it will take in terms of planning and capital to reach those goals) the effort is doomed. That’s where your banking partner comes in. 

Often overlooked in the business planning process, a partnership with an experienced banking team is invaluable when it comes to building a sustainable business.

Understand the Role of Your Bank in Business Planning

A business plan gives a picture of current finances and lays out a growth plan for the next five years. It explains business goals, strategies for reaching them, and market research to support those strategies. 

The primary role of a bank is to provide financial products and services such as business loans, credit lines, transactional banking, and treasury services. Funding may be needed throughout your business’s lifetime for operational costs like employee payroll, accounting support, inventory, and supplies. Develop a relationship with a financial institution early on so you have a partner at every stage to help you understand trends, make educated predictions, and learn about services that can benefit your bottom line.

Get Access to Vital Business Services

In addition to a place to make deposits and write checks, a bank can help to keep a business afloat with money management tools, payroll assistance, and short-term or revolving loans, and other financial services.

Cash Management

Cash management helps businesses balance and manage the funds in their accounts. Online banking tools allow business owners to:

  • Track transactions
  • Check balances
  • Make payments
  • Generate payroll
  • Monitor ACH (Automated Clearing House) payment and collections 

Effective cash management tracks income and outflow to prevent accounting errors and help you keep more of your hard-earned money.  

Business Loans

Whether you need capital to operate or purchase commercial real estate, your banking partner can help. Your situation and goals will be reviewed to find the best small business loan options. Financing can be arranged for short-term expenditures, like cash for renovations, or longer-term needs such as commercial real estate or loan refinancing. 

Business Lines of Credit

A business line of credit can give you access to funds to bridge the gap between payables and receivables. It offers a way to pay for unexpected expenses while building a credit history for the business. This is important for the growth of the business.  

Debit Cards

Business debit cards provide access to accounts without the hassle of writing checks or wiring money. They can be used for domestic and international transactions just like a credit card. When you use your debit card for business expenses, you don't rack up additional debt or have to worry that a check might bounce. And because you can easily access funds, you’ll likely save money with lower processing fees than those associated with checks and credit cards.  

Having access to these services can help streamline operations, manage cash flow, and fuel growth.

Choose a Community Bank or a National Bank

When looking for a bank to service your small business, it is common to feel overwhelmed by the possibilities. While national banks may boast of having access to the latest technology, community banks have a lot to offer.

A community bank is more likely to offer personalized services and understand local market conditions. Staff members usually have the incentive to get to know customers better, and the customer in turn gets the feeling of doing business with an organization that truly cares. Unlike larger national banks that may feature rigid rules and guidelines, community banks like Valliance tend to be more flexible and understanding with accounts and loans. This is especially beneficial for small and medium-sized businesses.

Start Building Your Business Plan. Start Reaching Your Goals.

Banks provide a multitude of business-specific financial services to help owners of small to mid-sized businesses manage their money. In addition to offering basic checking account services so that businesses can deposit funds, write checks, and make withdrawals, they provide loans, credit cards, debit cards, and cash management services. They may also allow businesses to transfer money via ACH and wire. A strong banking relationship in business planning provides owners with the tools they need to be successful. 

Valliance Bank offers full-service banking to businesses of all types and sizes. Some of our products include:

  • Free Business Checking: For businesses that are just getting started, a monthly minimum balance is not required. The first 100 transactions are free.
  • Business Interest Checking: For businesses with a $10,000+ daily account balance who want to generate passive income, this checking account earns interest. 
  • Commercial Analysis Account: For businesses with 100+ monthly transactions and/or large balances, this account comes with an earnings credit to offset fees.
  • Tailored Loan Solutions: We offer competitive rates on capital funding, lines of credit, and commercial real estate loans.
  • Treasury Services Solutions: With our solutions, your business gains access to mobile banking, online reporting, ACH capabilities, remote deposit capture, lockbox, and fraud prevention service.    

To achieve your business goals, explore a deeper relationship with your banking partner. Contact Valliance Bank today to learn more about how a strong bank relationship can support your business planning and growth. We offer Oklahoma and Texas businesses unique account options needed to grow and thrive.