Sure, it’s easy to open a commercial banking account for a business entity, but the best value comes with building a relationship with your commercial bank.

Commercial banks or commercial arms of larger banks enable businesses to fund their operations, investments and expansion plans. Few companies would thrive without the strategic partnership a commercial bank can provide.

This article will look at banking for commercial entities and provide insights on streamlining the relationship to deliver more value for your company.

What is Commercial Banking?

We’ll start with the question, what is commercial banking?

Commercial banking offers essential services and financial products such as deposit and checking accounts. They also provide loans, lines of credit, payment processing, advisory services and more to serve businesses.

Commercial banking helps businesses access the funding they need to buy inventory, pay employees, invest in real estate and equipment, and fund the operation and growth of the company.

How to Simplify Your Commercial Banking

Establish a Banking Relationship

Go beyond the basic transactional relationship. Your commercial banker is knowledgeable, experienced, and eager to help your business succeed with additional services such as strategic planning. A seasoned banker can assist you in developing growth plans tailored to your business, offering insights and suggestions based on their understanding of your financial and strategic goals.

Inviting your commercial banking team to your business is a good idea. The more the team knows about your company, the more they can provide crucial guidance based on the specifics of your situation.

Access Customized Financial Services

A dedicated commercial banker ensures you receive the appropriate financial products and acts as a liaison between your business and the bank, tailoring services to match your current and future needs. Your banker can be a strategic asset as your business grows and expands into a larger enterprise.

Simplify Accounts

It’s tempting to chase a few tenths of a point on interest rate. You could end up with fragmented relationships if you have deposits, loans, and other services split among several commercial banks. You may be spending more time than you need and missing out on the benefits of a deeper relationship. Focusing on one banking relationship can better provide the banker with an overall picture of your financial status to develop solutions to fit your needs best. If your credit situation is a bit out of the box, relationship-based pricing results in a more cost-efficient banking relationship.

Improve Access to Capital

With a long-term relationship, your bank can streamline access to lending through intimate knowledge of your business. The bank will be able to quickly assess creditworthiness, collateral, and business viability to meet your need for capital to expand, innovate, and create employment opportunities.

A commercial banker who knows your business can examine financials and tax returns to prepare the loan process, analyzing trends, liquidity, and cash flow to anticipate any problems in obtaining the financing your business needs to grow.

Focus on Efficient Cash Management

A commercial banker specializing in business cash management can help streamline your collections and disbursements. Your banker will guide you in implementing tools and procedures to improve efficiency, reduce costs and mitigate fraud risks. Ask your bank how you can simplify cash flow, enhance liquidity, and streamline payment processes. Options include automated investment and loan sweep and receivable and payable automation deposit accounts that do the work for you.

Streamline accounts payable with various payment options, such as business credit cards, to pay invoices. Simplifying this process can save administrative overhead and improve spend tracking.

Grant Trusted Advisor Status

Remember that your commercial bank is vested in seeing business clients succeed. Your banker should be more than a service provider; they should be a trusted advisor.

Your commercial banker could help you network with potential clients and vendors in your city. It’s helpful to share ideas for growth and connect with the larger business community.

Amplify Your Commercial Banking Relationship

Meet your financial needs through a streamlined commercial banking relationship. You’re more likely to have access to the products and services you need and cultivate meaningful connections that can pay off in many ways. With a collaborative and communicative relationship, your commercial bank can help you navigate the complexities of the financial world.

Contact a Cadence Bank Commercial Banker today to find out how we can help you achieve your potential.

Read more about how Cadence Bank can help streamline your commercial banking situation.

Sources

https://www.linkedin.com/pulse/commercial-banking-fueling-business-growth-economic-noor-uddin/

https://www.theforage.com/blog/careers/what-is-commercial-banking

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.