Tips for better business banking: form a relationship with your bank for better service.

• Author: Barbour, Tracy
• Position: FINANCE

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Operating a business can be challenging, but having a positive relationship with a financial institution can make the job easier. Your banking relationship is one of the most important aspects of operating a business. Having a strong relationship with a financial institution can provide access to accounts, services, credit and loans when you need them. Here are some tips from Alaska's banking experts to help you promote better business banking practices for your organization.

CREATE A BANKING RELATIONSHIP BEFORE YOU NEED ONE

It's best to establish a relationship with a bank before you need a loan, advises Cheri Gillian, vice president/corporate marketing director of First National Bank Alaska.

"When you do have a more urgent need (for credit) then the bank already has an appreciation of the ebb and flow of your business," she says. "They know you and you know them."

Such familiarity builds trust, which is essential given the sensitive nature of the financial information involved.

Trust is indeed an important ingredient in any banking relationship, says Win Gruening, senior vice president with KeyBank. It places the banker in the position to provide counsel and recommend products and services, perhaps before the client is aware of a need.

"If an emergency arises, a well-informed advisor can act quickly and implement a solution," he says.

KeyBank typically has "relationship managers" to serve as a single point of contact for customers. If necessary, these individuals can bring in product partners to deliver expanded services to meet their clients' needs.

At Wells Fargo, a team effort is used to nurture banking relationships. Instead of working with a single representative, business customers have access to a business manager, relationship manager, business associates and support staff, according to Well Fargo's Anchorage business banking manager, Bond Stewart. The relationship manager serves as the primary contact, while the others provide assistance in his or her absence. "What we've found works best is a team approach," Stewart says. "Then you have multiple points of contact that you are comfortable with."

Having a relationship with a financial institution can place a business in a stronger position to make good decisions, says Dave Hamilton, senior vice president of Business and Commercial Services for Alaska USA Federal Credit Union. It gives the institution the ability to say yes (or no) sooner, which will enable the business to make better and quicker decisions.

"The relationship allows them to know where they stand, not only today with their financial positions, but also it allows them to make decisions with their future opportunities," Hamilton says.

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