Why You Need a Banker


A banker is an important resource for financing your start-upWhen you plan to start your business, choosing a well-experienced, qualified banker is one of the most important decisions you can make to ensure a your business is successful. A good banker is going to provide you sound advice on financial matters like how much and where to invest in your business, types of investment, how to manage solicitations to investors, how to proceed with any negotiations, etc. There are many reasons why it is necessary to seek advice of a banker when you decide to start your own business.

Get Clarity on Investment Banking Process

You should have a basic understanding of the investment banking process, so as to avoid being led to believe the wrong facts. Here you should have a banker to communicate to you the facts about investing capital in your business. Very different rules apply for debt or equity financing for a business, so your banker will need to be thorough when discussining the requirements for capital financing. Clear communication with your banker in terms of the status of each fund is essential to get clarity in the entire banking process.

Banker Understands Your Business Segment

An experienced banker is capable of speaking intelligently and knowledgeably about your business and business segment. They are well-aware of the other players in the industry and can help you to lead deals in the industry. A knowledgeable banker may even be able to advise you on typical expenses, profit margins, and returns on investment for budgeting purposes.

Maintaining a Good Relationship with Venture Capitalists

An experienced banker maintains good relationship with venture capitalists who work within your business segment. Banks can be picky about the types of deals they are willing to finance in-house, so you may need a referral to another source of capital. If you are into fund-raising, you might face trouble unless your banker maintains cordial relationships with venture capitalists.

Your Banker Is Your Partner

The outside world perceives your banker as your partner. Therefore, make sure to choose a banker who is extremely professional and can represent your company. When you are starting a business, there is always need for finances that create an atmosphere of potential risk or security, depending on the situation. Under these circumstances, your banker can be of great help if you keep him or her informed of the financial developments in your business. The banker will need financial statements of your company. If there are any improvements in sales or profit, make sure to point these out to your banker. Also, if there are changes in financial obligations, such as debt or leases, make sure to inform them. Your banker is an integral part of your business, so it is imperative to reveal all your financial details to your banker. When the banker is well-informed, he or she can help you take right financial decisions for your business.

Helping You Secure Loan

You may need a loan to start or run your business successfully. There are various types of loans such as business acquisition loans, debt financing loans, franchise start-up loans, long-term loans, micro-loans, professional loans, revolving check credit, SBA commercial loans, short-term loans and start-up loans. You may require any form of loan while running your business. This is where your banker comes to your rescue. All you need to do is to present your banker with a marketing plan and repayment plan along with your credit application. If the banker is satisfied with your terms, you can easily secure a loan.

Your banker understands your financial situation better than you probably will, and a good banker is just as important as your attorney, CPA or business advisor. Therefore, keep your banker informed of your business and financial goals to ensure a positive outcome.

If you need help connecting with a banker, or if you want to learn more about the steps that you need to take to start your business, simply enter your contact information in the sidebar, and we will follow up with you within 24 hours.