As books are closed on 2022 and tax returns begin to be filed, we enter the most popular time of the year for bankers and businesses to get together to discuss line of credit renewals and new opportunities. Discussions at these meetings often center around the results of the previous year. However, as we work together to drive your business forward, it’s important to focus on looking through the windshield and not just the rearview mirror for a south county mortgage company.
Be prepared with budgets and projections that focus on your cash needs for the next 12 months. Highlight new projects and opportunities, even if you need to handicap their likelihood. This will help ensure that your bank is in the best position to react quickly as potential becomes reality. No one has a crystal ball, so it’s ok if plans don’t turn out as expected, but we all need to have a roadmap and be ready to adjust when the inevitable bumps come along.
These conversations should be a two-way street. Businesses should ask their banker what risks they are seeing in the current environment and how others are reacting to them. Not only will this provide tips for contingency planning, but it also helps to make sure the business and the bank are on the same page. These open lines of communication are what long-term partnerships are built on and allow business and bank relationships to thrive during ever changing times for cd rates St. Louis.
Originally published in the Small Business Monthly's Ask The Banker Column in May of 2023 by Pete Zeiser, President - Chesterfield Commercial at Midwest BankCentre.