BEST PRACTICES/COMMERCIAL BANKING
FINDING THE BEST BANKER FOR BETTER BUSINESS
As a business owner, it is critical to maintain a relationship
with a bank that can help you navigate the
treacherous waters of entrepreneurship. How do you
select the bank that you want to build a relationship
with?
As banks continue to merge and grow, community
banks become fewer and fewer. It is important to research
a bank and a banker to form a long relationship.
Today’s technology allows the business to not focus so
much on the actual location of the bank but rather the
potential for a long-lasting banking relationship.
Talk with other like companies to see where they
bank. Specifically talk to them about what they like
about their bank or banker and ask if they have a
personal business banker that they work with. Most
often the large mega banks do not have a person that
business owners can work directly with. This can be
problematic for a growing business.
BUSINESS OWNERS SHOULD
USE THE BUSINESS BANKING
SPECIALIST AS A CONSULTANT
JUST AS THEY SHOULD USE
THEIR CPA AND THEIR ATTORNEY.
HAVING A SUPPORT TEAM
WILL ENSURE THAT YOU ARE
MAXIMIZING ALL RESOURCES
AVAILABLE.
Business owners should meet with potential
business bankers and interview them to ensure
that they understand the current needs and
the goals of your company. After you make this
important decision choosing a bank and banker, it is
important to communicate often to ensure he or she
understands where you are in the business as well as
where you are heading in the near and distant future.
Some people believe that it is only important to
talk to their bank when they have a need. That just
isn’t true. As a relationship banker for more than 30
years on the Treasure Coast, I find that talking with my
46 TCBusiness.com
TAMMY RONCAGLIONE
Tammy Roncaglione is senior vice
president and St. Lucie community
president of CenterState Bank and
previously worked with Barnett
Bank and Bank of America. She
is a founding member of the
Treasure Coast Manufacturers
Association and is the recipient of
the 2019 Pete Hegener Leadership
Award from the St. Lucie County
Economic Development Council.
clients often helps me to become more proactive in
making recommendations to the business owner.
FORMING A RELATIONSHIP
Operating a business during a booming economy
is just as tricky as navigating during a slowing economy.
The challenges are different, but both can put
you out of business. Managing growth is a common
mistake that businesses make that puts pressure on
the cash flow of a company.
For example, some new business owners jump
into selling a product without realizing that the
invoice will need to be carried for sometimes up to
90 days. Working with your community banker can
help you put a line of credit in place that will help
you bridge the gap between the sale and the collection
of the invoice. That same line of credit can
help you during a slowdown as you use the line for
support during the slower months.
Your business banking specialist can also advise
you when purchasing equipment. What type of
equipment should you finance and how long
should you finance the equipment? Equipment
should be amortized based on the actual life expectancy
of the equipment and technology as well as
the need for future equipment.
Your business banker will also want to discuss a
succession plan for the company. Who will take over
in the event of your death? Not a pleasant conversation,
but for many companies the owner of the company
is a key player in the daily operations. Will the
company be passed down to the next generation
or will the company be sold? Your banker should
want to understand your plan, and that includes the
overall forecast even after your passing.
Business owners should use the business banking
specialist as a consultant just as they should use
their CPA and their attorney. Having a support team
will ensure that you are maximizing all resources
available. v
/TCBusiness.com