By Janie Pritchett-Clark

Whether starting a business, looking to expand, or managing your finances and cash flow, your bank is an important business alliance. The relationship can be as important as product offering, location, and market strategy, so choose your bank carefully.

What should a small business owner look for in a bank?  “A bank that always greets them enthusiastically,” says Howard Hamilton, NWA Regional President for Liberty Bank of Arkansas.

“A banker who is responsive and knowledgeable about the business needs of their customers is a key ingredient in the banker-business equation,” Hamilton explains.  Banks must continually seek to provide solutions to customer needs and objectives.

“A small business owner needs a bank willing to partner with them in their venture,” says David Glass, Liberty Bank’s Community President for Siloam Springs/Gentry. “It is important that the bank is safe and secure.”  Information is readily available to the public regarding banks, says Glass.

Aren’t all banks created equal?   That’s like asking if all retail stores are the same, says Glass. “Of course, we know they are not.”

Joe Spivey, Liberty’s Community President for Rogers/Bentonville believes community based banks tend to be more responsive to their customers needs and generally focus on the local economy.

“This is the result of two factors,” he says. “First, the officers are involved directly in the community and are in touch with the needs of consumers and local businesses.

“Community banks become stakeholders in the local economy and are actively engaged in local and state government, schools, churches and small business,” he explains.

Decisions are usually made locally in community banks on loans and deposit operations, Spivey adds. This results in quicker and more flexible decisions. Gaining access to funds and funding decisions can be a significant competitive edge in small business.

“Although many banks offer similar products and services, the way they treat customers can be significantly different,” says Glass. At Liberty Bank, we do not believe customers are too small, too big, or too anything.  We want our customers to become our friends.”

That’s the very concept behind “relationship banking” – developing a one-on-one relationship of trust and shared vision.

“Relationship banking is when the banker takes the time to know the customer personally as well as learn about the customer’s financial needs,” stated Hamilton.  Our vision statement conveys its importance – Liberty Bank of Arkansas is a relationship based, innovative, financial services provider serving the life-long needs of our customers, employees and communities.

There is much to be gained in the community from the banking + business equation. Business customers use banks to keep cash safe and secure, banks in turn provide safe and convenient methods of payment and a source for capital. Stronger businesses create jobs. Jobs create employees with paychecks to deposit and spend.

“NWA is a great place to live and work and we, at Liberty Bank of Arkansas want to keep partnering with our local businesses to strengthen our economy and our community,” says Glass.

Getting started in business in Northwest Arkansas? Here are 5 tips to help your business start a good banking relationship:

1.   Start with a deposit. Don’t wait until you need to borrow or extend credit to open your accounts. All too often, small businesses wait too late to begin a deposit relationship,” says Joe Spivey.

2.  Visit often. Get in the habit of visiting with your banker at the bank on a regular and frequent basis. Briefly share what’s happening with your business, your goals, needs, and achievements.

3.  Extend an invitation. Invite your banker to your business location once every quarter. It doesn’t have to be fancy, just give them the 5¢ tour and update.

4.  Be accountable. Maintain accurate and timely financial records for your business. Be sure to reconcile your accounts, run regular P&L, cash flow and financial statements.

5.  Communicate. Address problems or concerns before they become an issue.  Your bank should make you feel comfortable accessing their open door policy, and will appreciate your efforts to communicate your needs in a timely manner.