BusinessTN

In an economic downturn, it's particularly important for small business owners to know who their friends are. Often, this means suppliers, partners and, of course, customers, but it should also mean bankers. A good banker who understands your business and responds to your needs is crucial in tough times. But what's the key to choosing the right banking partner and making the most of that relationship?

Jim Rieniets, president of Nashville's InsBank, suggests seeking advice from other business owners as to which bank might be a good fit. "Don't just stroll into a bank branch--you'll find someone who can sell you something, but you might not find someone who understands your business," he says.

In fact, Rieniets and others stress the importance of finding not just the right bank, but the right banker. After all, convenient services like online account managing can be available anywhere, but the person one calls for an emergency loan can be the difference between raising the cash and being left out in the cold. As a result, Rieniets says a single banker should become the go-to person for a small business. That person then becomes an advocate when it's time for that loan--and, Rieniets says, "God forbid, you can't check 'yes' on every box on the form."

The best advocate combines agility with authority, says Stan Puckett, CEO of GreenBank in Greeneville. He or she has the agility to respond quickly to a customer's needs and enough pull with the powers that be to see that those needs are met. For example, if a competitor is closing its doors and selling useful inventory or equipment at half price, a rival business might need a large loan approved in a day to seize the opportunity and make a purchase. "You don't want someone who's just another layer of bureaucracy," Puckett explains, adding that such bureaucracy can fatally slow the process.

Being unable to get in touch with that "go-to person" is yet another factor that can needlessly slow the process. You may know what numbers to call when trying to reach your banker, but do you know who or what will be on the other end when your banker is not there? Is it an automated answering service with a labyrinth of options, a receptionist who can patch you through to a person in charge or an actual banker? "I encourage all my bankers to have their cell phone numbers on their cards," says Claire Tucker, CEO of CapStar Bank in Nashville. "I find that when a small business owner needs something, he or she needs it now."

Along those lines, be aware of whether a bank has high employee turnover. Ron Samuels, CEO of Nashville's Avenue Bank, says "customers hate having to tell their story to a different person every six months." This, too, can be more than just a hassle--it can be a liability when one needs capital in a hurry. "One of the biggest frustrations is a bank that isn't timely in its response," Samuels says. "It's better to have a fast 'no' than no answer at all."

Still, communication goes both ways, Samuels says. It's important to assess your business thoroughly, and when explaining your needs to a bank, turn that banker into the customer. Don't let it be your fault that a banker doesn't understand your business.

Ultimately, a bank should be more than just a safe place for businesses to put their money. A banker can be one of the first people business owners turn to for help, and not just the financial kind. Good bankers can offer advice and counsel on all sorts of business decisions, and the more they know about how business is going, the more free help they can offer.