The right commercial banking partner can help you plan for growth, manage cash flow, and protect your business - not just provide your next loan. Chase shares what to look for in a banking relationship and the common missteps growing businesses should avoid.

What should I look for when choosing a commercial banking partner?

When considering your banking partner, there are several important areas to look at. First, is the bank a good match for your needs? This means asking whether the suite of services they offer is sufficient to meet your current and future requirements, and whether the institution's culture aligns with how you like to do business. Second, does the banker's experience, business knowledge, and personality fit well with you and your team? A good way to gauge this is simply talking through your business situation with them. A knowledgeable banker will ask thoughtful questions and demonstrate they understand the nuances of your industry, not just recite loan terms. Choosing the right partner is as much about people and culture as it is about products.

How can a commercial banker help my business beyond providing loans?

The most successful bankers don't think of themselves solely as “lenders.” A good commercial banker should focus on long-term capital strategy and helping you think through how to manage capital relative to your current cash flow situation and your growth potential, not just the rate and amount of your next loan. Beyond that, bankers can bring a range of cash management tools to the table: maximizing your cash balances, optimizing receivables, and protecting your working capital from fraud. Payment management is another area where bankers add real value — moving from antiquated processes to modern electronic payment options for both incoming and outgoing payments can meaningfully improve efficiency and security. The right banker acts as a resource across capital management, cash management, fraud mitigation, and investments, all important components of a business’ financial health.

What are the biggest financial mistakes you see growing businesses make?

One of the most common mistakes is not planning capital for the long term, retaining profits appropriately, and structuring debt to match the asset it supports. As a business grows, owners need to work with their banker to decide how to fund that growth, whether through credit for working capital needs or by retaining a certain level of earnings each year. Too often, business owners focus solely on the income statement, when balance sheet management deserves just as much attention.

A second major mistake is a lack of good financial reporting. Financial statements are essentially the scorecard for how a business is performing, and they should be produced monthly with a high degree of accuracy. Without accurate financials, it's difficult to know how well your business is doing. If you don't have an internal team for this, a good accountant can help. Bankers rely on this information too; accurate reporting allows them to help guide decisions for your company's future.

Connect with Chase at cchambliss@river.bank  |  NMLS 708669

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