By Bill Ferguson
 
At some point in the life cycle of your business, you may need a loan-either to start your company or to help it grow. All banks can give you a buck, but the real question is: What else can they give you? You'll find the answer in the process of finding a bank.

Be Prepared
To get off on solid footing, it is important to understand the criteria bankers consider when underwriting small business loans. For new businesses, they will want to see your business plan, including:

• Your past experience and what will make you successful in the new venture
• A description of your business and how it is organized
• Research on the need for this type of business in the community
• Target audience information
• Financial data, including expected expenses for salaries and benefits, overhead and operating expenses, along with sales or income projections

Bankers will also want to see your passion and commitment to making the business succeed.

Consider Your Options
What will drive your long-term satisfaction and improve the odds of a long-term working relationship? When you are shopping for a banker, consider:

• How do you feel about the people who will manage and service your accounts?
• Does the bank understand the unique needs of a small business?
• Does the bank have experience working with your type of business?
• What financial services do you need; and does this bank offer all of them?

It is important to find a banker who understands your personality, your industry and will work with you to help your company succeed.

Some banks specialize in certain areas, such as retail, medical  or even small business banking. It pays to work with a bank that offers products and services specifically designed to meet your needs. Think ahead when you make your bank selection. Pick a bank that can grow with you.

Seek Out Specialized Services
Running a small business can be costly and time-consuming. Many banks offer small business checking products to help make the process of managing business finances easier and more convenient. Often, a bank creates a package of financial services designed with small business owners in mind. Some packages include a comprehensive list of financial services comprised of checking accounts, loans, lines of credit, credit card processing, investment services (including qualified retirement plans), credit cards and more.

Many products are offered free to small business customers, such as online account access, bill payment, business check cards, electronic transactions with no limit and no monthly fee on checking accounts. Additionally, you want to make sure your bank takes into consideration the personal loans and deposits that you maintain with the bank. Research shows that small business owners, while desiring to maintain separate accounts for their business and personal assets, do think of them as a combined pool for planning purposes.

Do Your Homework
Many banks handle Small Business Administration (SBA) loans, and bankers who specialize in small business financing can help you determine if an SBA loan is a good option for you. You can save time by working with a bank that is designated as a preferred SBA lender. These banks have the ability to act on behalf of the SBA.

With proper planning and collateral, other loan options also are available. An experienced small business lender will work with you to structure the best financing package to meet your particular needs.

Grow With a Plan
In the life cycle of a small business, growth is like eating cookies. One cookie is good. Two cookies are even better. But three cookies may give you a stomachache.

Stories abound about small companies that start out with two bright people, and quickly grow into 50-person ventures. It looks great on paper-or in the paper. The problem is, however, that the people who started the company keep moving further away from the work they know and love. The right banker will ask you tough questions about your plans for growth, cash flow and projections. And, they can offer referrals to other professionals-including CPAs and attorneys-who understand and can help you manage your business.

When you get right down to it, your banker's concern and involvement is the bottom line. Cash is just a commodity. Ten thousand dollars from one bank won't look any different than $10,000 from another bank. But the right banker will be different, because the right banker will make a difference.

What can a bank give you besides money? A bank can give you a true financial partner; someone who cares about your company and your community. A bank can give you the support, the service and the products you need to succeed.

Bill Ferguson, a 21-year industry veteran, is executive vice president and director of Small Business Banking for Commerce Bank. In this position, Ferguson oversees the retail banking and branch administration for the Kansas City metro area, which includes leadership of 52 banking centers and more than 500 employees. You can reach him at (816) 234-7384 or .