Are You Taking Full Advantage of Your Banking Relationship?

For many business owners, big decisions are almost always driven by cost. Getting the lowest price on every product and service is essential when revenues are tight.

That can include finance. Whether depositing, borrowing or managing cash flow, you probably look at price first, even if that means splitting up your banking needs among multiple institutions.

Your main deposit accounts determine your primary financial relationship. They are the key piece of the puzzle that affects everything else. Chasing the best interest rate for those accounts can fragment your finances and keep you from seeing the complete picture.

But if you work closely with a financial advisor to put together the whole puzzle as a team – with deposits at the center – advantages start to appear as the pieces fit together. Here are three potential big wins you should look for when you streamline your company’s finances with a single bank.

More Convenience
This is pretty simple. If you have all your banking needs with one firm, you have one point of contact for every product and service you use. That means one phone call or email for your line of credit, your treasury or merchant products, your operating accounts, savings and more. It also means one source for your financial statements and records, which can be a huge advantage.

You will also get consistent service and attention. Not all banks are created equal, so look for the one that gives you the best service, the most helpful advice and the most immediate attention. Then consider giving that bank your central relationship.

Better Advice
Your banker shouldn’t just send you paperwork and bills. Your banker should be a trusted advisor who can look at your complete financial picture and give you advice for improving it. How can that happen if he or she can’t see all of your obligations and holdings?

Having your loans, deposits and other services with a single bank lets your banker anticipate your needs by checking in, looking at trends in cash flow and spotting inefficiencies so they can offer a better solution. Every financial need you have is connected to another, and they can’t be managed well if they’re run by multiple people who never meet.

Lower Prices
Some banks will look at the complete banking relationship when making decisions that can be critical to your company, like interest rates and service pricing. In other words, the bank that holds your main deposits may give you a better deal than a bank that’s only giving you a single loan.

That can apply to what you pay, but it can also mean the difference between approval and denial in lending. If your business doesn’t fit into the nice, neat box for easy approval on a loan or line of credit, having a complete relationship with deposits could push it over the line.

When it comes to banking, the lowest price isn’t always the best fit. And what looks like a good deal could prevent you from saving money in other ways. You might end up in a better financial position if you put your complete financial puzzle into a single set of hands so you can be sure the pieces are put together correctly.

Look at your current line-up of bankers, pick the one who understands your business and goals and say, “I’m ready to stop dating and start a long-term relationship.”

Ashley Preskenis is a financial advisor based at Pinnacle’s Shady Grove office in Memphis. She can be reached at Ashley.Preskenis@pnfp.com or by calling (901) 259-5693. You can also find a Pinnacle office near you.