GETTING THE MOST OUT OF YOUR BANK

Are you getting the most out of your bank? This is not the case for many people. Tales of woe seems to abound in many quarters regarding people’s experiences with their banking institution.  While this perception may be difficult to shake off I make bold to declare that those who desire wealth must have a cordial, cultivated and close knit relationship with a bank.

Historically banks started out thousands of years ago as money lenders. The business of money continues to be extremely profitable today and the banks have evolved into strong players in the world economy. Banks provide one of the most important commodities needed in building wealth – finance.

It is clear that banks and banking are essential partners to the wealthy. Careful studies of the lives of the wealthy confirm the notion that behind every successful man or woman is a bank/banker. Thus those dreaming of amassing wealth must have the same! You must, thus select a reputable bank to start a relationship with. Choosing a reputable bank to get the most out of can be achieved once you play by the following rules:

Research a bank’s track record before deciding to build relationship with them. Do they have a vibrant policy for giving loans to SMEs? Do they provide a satisfying customer service experience? What are their rates/fees in comparison with others? Is your Account Officer responsive? Research a bank like you would research a potential investor or business opportunity before making a choice! It always pays to work with one of the best.

It is imperative to build a relationship with your Account Officer. An Account officer is basically the person assigned to manage yours and similar accounts. He or she is a repository of knowledge on the entire goings on in the bank with regards to every financial service or product. It will come in handy to have their contact details and for you to keep in constant contact.

Develop a good track record by running and funding your account. Imbibe a clean account management structure by making more deposits than withdrawals, refraining from issuing bounced cheques, making use of offsite banking portals (ATM machines, Internet Banking). You might have to do so for a minimum of 6 months before you can qualify for loans or other credit facilities.

Open at least 3 accounts in one bank. Open your Personal accounts (Current & Savings), and perhaps one account for your business. There’s nothing your Account Officer likes more than to see you are all banked in one place. He or she will be quick to recognize your patronage and look for ways to keep encouraging it.

Don’t expect to get the most favourable terms right from the first loan or facility you get from your bank. The key to banking business is in “turning over,”which depicts a flow. It usually starts with smaller amounts which are refunded within the agreed time frame. The amounts keep growing till it becomes more substantial. Those who have longer term relationship will usually get the best terms so keep at it.

Package your business properly. Embrace record keeping and properly register your business as a bona fide corporate entity. Ensure that you separate funds meant for business from those meant for personal use. You will have to sell your organisation to your bank and being properly packaged gives a good and favourable business impression, the sort that credit can be extended to.

Finally it does one no harm to also build a relationship with a second bank just in case. It is unwise to put all your eggs in one bank’s basket. Even though your bank’s performance is satisfactory, still look around. Other banks may provide you with a much better service. You can even use the comparison between banks in your negotiations for better terms and services.

No one becomes wealthy by investing their own money only. You need other people’s money to grow your business to a point where you can create wealth for yourself. The banks store these funds and may be the only source for reasonable funding you can gain access to. Getting the most out of your bank is of the utmost importance as you navigate your way from lack to plenty!