Is it a Smart Move to Add a Commercial Banker to your Team?

Is it a Smart Move to Add a Commercial Banker to your Team?

January 08, 2018

Business Advisor:

When you are growing your small business, a commercial banker can be a valuable asset to have. The good commercial banker in its truest sense acts as an business advisor/investor for your company. He or she provides funds, or is a source of financial resources. Like an equity investor, bankers normally will have at least some influence over the firm’s actions. But unlike other investors, the banker earns a limited return, stated in their contract rate, regardless of the firm’s profitability.

While banks provide a myriad of non-lending services including cash management, their most important function is often in an advisory capacity, especially for small business.  Small businesses may rely on their banker as the company’s primary financial advisor.  A commercial banker typically has had more training, experience and expertise in financial matters, thus, they can provide the customer with advice and assistance in the areas of financial planning, operations and control.

Financial Specialist:

The bank becomes a major if not the primary source of funds for the growth of a company. Bankers often are crucial for not only funding the capital necessary to fuel the firm’s growth but may provide additional value when involved with the planning or strategic guidance of the company. Business owners not only depend on their banker for capital, but, at this stage of their operations they may not be able to afford a large staff or financial specialists so they rely on their banker to provide a certain level of expertise and guidance to help their firm grow.