Top 3 parameters to choose the right banker

If you aspire to grow your business and take it to the next level, then apart from your clients one of the most essential things you are going to need is the formidable support of a key business partner. viz: your banker.

Corporate India is witness to the fact that a banker is instrumental in making or breaking a business. It is therefore imperative, that you enroll the services of the right banking partner which is not a fair-weather friend.

After studying more than 1265 successful debt-driven businesses over the past 10 years, we have observed a pattern in how these businesses have gone about choosing the right banker for themselves.

Listed below are their TOP 3 parameters.

1 INTENT
How would you rate the effort of your banker to understand the operating model of your business? Is the banker only interested in talking about his products, services, and pricing OR Is he keen to understand what are the TRUE financial challenges that you are facing in your business before offering you the most OPTIMAL solution?
The preliminary discussion that a banker has with you is an indication of the value system within the bank. Do they just say “customer first” or do they also act “customer first”. This intent is revealed at the outset itself.

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2 TRANSPARENCY
Your ideal banking partner will bring in a level of transparency that is much admired by any business owner. They will always advise you to avail of the most appropriate product/service suitable for your PURPOSE, the ideal funding requirement with the rightly balanced collateral/security structure. They will be very forthcoming about sharing the OPTIONS available at your disposal and the PROS & CONS of choosing each option so that you can make an INFORMED decision as a business.
Most importantly, they will openly share all the CHARGES (direct, indirect, incidental) that you would incur so that you gain predictability in your banking expenses.

3 STRENGTH
How well placed is the bank to play the crucial role of your “business partner”? How are they helping you grow your business? Do they believe in growing with you or are they focused to just increase their wallet share? Can they offer you a competitive interest rate on your funding requirement, which is a true representation of your risk profile? Do they have the credibility and wherewithal to deal with key stakeholders important for you [regulators, government authorities, governing bodies, etc.]? What kind of strategic guidance can they bring in on the industry/sector in which you operate? Are they able to lead with insights, build trust and create value in every conversation they are having with you?

How do your current bankers fare on a scale of 1-10 across these parameters?

If you want to understand how good your current banker partner is, then please book your consultation session for FREE (worth Rs.2500/- only for 1st-time users)

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