Pros and Cons of Multiple Banking Relationships
Like most successful family business owners, you probably hear at least occasionally from a banker who tries to persuade you to move your banking business to his or her institution. You and your company may already have relationships with two or more banks. For example, you may have personal accounts at one institution and business accounts at another or a loan and checking account with one bank and a CD at another. There are pros and cons to maintaining these multiple banking relationships that you should consider.
Advantages of Multiple Banking Relationships
Multiple banking relationships can be very beneficial, especially if you find quality service providers at more than one institution. The primary benefit you can realize from more than one banking relationship is ensuring that you receive competitive pricing and terms for each of the product types offered. Contact with more than one banker can provide you with important market information regarding pricing, terms and service.
Another advantage is that a fresh look at your business can often mean new ideas. Someone learning about your business for the first time starts with a clean mental slate and can often present ideas that you and your current banker may have overlooked. These ideas may represent cost savings or growth opportunities for your business. More…