Bankers and Small Businesses
Jonathan Osler explains that it can be easy to forget that small businesses are the driving force behind the economy. According to the Small Business Administration, small businesses account for 99 percent of all companies in the country, and small businesses employ about half of the country’s workforce. While there are many different small businesses, small financial institutions are an essential part of the overall economic ecosystem. These banks offer a wide range of personal and business banking products and services for their customers, many of whom are just starting their financial lives or have irregular cash flows. Here’s everything you need to know about small banks and their customers.
What is a banker
A banker is a person who offers financial services to other people, either as an employee of a commercial bank or as a personal banker. A banker typically deals with clients and customers and handles their finances, and helps them make financial decisions. Clients will include individuals and businesses, and a banker may even offer financial advice to nonprofit organizations.
Why banks are essential to small businesses
A small business may have one employee or only a few, but it is still considered a “small business” in the banking sector. While a significant corporate entity like a Walmart store will qualify as a small business, so will a home-based business with just one client. When banks see that a client is a small business, they generally offer them more favorable terms and conditions than they would offer to a significant corporate entity. Small businesses also like dealing with financial institutions because they are well known for their customer service and are usually more responsive to needs than more prominent companies. Since small businesses increase, financial institutions will also appreciate dealing with them as new customers, and their needs change over time.
How small businesses should deal with their bankers
Jonathan Osler believes that small businesses should feel free to get to know their banker personally as well. While a small business doesn’t need to have their banker’s cell phone number, it is essential for them to feel comfortable reaching out to the banker if they have a question or want to set up a meeting. A personal relationship between the banker and small business will ultimately better care for their customers.
How bankers and small business owners can understand each other
Like all businesses, banks make money by serving customers. The difference is that banks are also government-sanctioned institutions that provide a wide range of financial products and services. It includes everything from checking and savings accounts to mortgages and investments. Banks also offer day-to-day banking services for their local communities, including running community development programs and supporting nonprofits. The best way for banks and small businesses to understand each other is to meet one-on-one. Small business owners will be baffled by banker slang and terminology. Like all other businesses located in the government market, banks have their jargon as well. By coming together, the banker and small business owner can exchange ideas, reduce misunderstandings, and set themselves apart as leaders in a region or community.
Banks are essential to the country’s economy, and they play a significant role in the financial lives of small businesses and consumers. Although they may seem intimidating at first, small banks are generally warm, helpful places to do business. They are also good corporate citizens that support their local communities.