Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
1, Community banks typically have the same modern technology as larger banks, but offer a more personal touch.
2, Federally insured and regulated banks insure up to at least $250,000. Plenty of banks offer additional protection.
3, Community banks offer a one-on-one connection, as they do not have hundreds of thousands of businesses to serve. They focus on those in the community.
4, The community connection companies get with community banks can lead to more flexible services and understanding during difficult times.
It’s never been more important to partner with a banking institution that has a record of security and safety that you can rely upon. There are a lot of options for protecting your assets and you should do your due diligence before you trust any institution with your business.
Community banks are an important resource for small businesses, especially in times like these, as they’re equipped with all the modern technology and practices of a larger institution but offer the local and personal touch that only a community bank can provide.
Here are a few ways community banks can offer your business safety and stability, while also positioning you for growth.
Before we look into the benefits of community banks, let’s take a step back and talk about the safety and security of your money.
According to the American Bankers Association, the safest and most convenient place to store your money is in a federally insured and regulated bank. The main reason is that your money is insured for up to $250,000 and plenty of banks offer additional protection. And in the 90-year history of the Federal Deposit Insurance Corp. (FDIC), no depositor has ever lost a penny of an insured deposit due to a bank closure.
In addition to insurance from the FDIC, safe and secure banking institutions offer robust fraud protection to keep your money safe from external threats. These practices may include a multi-factor authentication system to prevent hackers from getting into your account or having technology in place that detects and alerts you about abnormal transactions.
The bottom line is stability. A financially stable bank will be able to provide you and your business with service throughout economic ups and downs. You’ll be able to sleep well knowing your assets are safe regardless of what external events are taking place.
A community bank provides you and your business with long-term financial security through a relationship-based model. There are a couple of ways that a more personal banking approach leads to big results for keeping your money safe.
Community banks aren’t run by large corporations, nor do they have hundreds of thousands of businesses they have to take care of. They serve members of the community where the bank is located and they are solely focused on helping the businesses within their community.
Your dedicated banker will take the time to get to know you and your business inside and out. They won’t be giving you one-size-fits-all advice but will provide you with service that’s based on your unique situation and the opportunities for your business.
The deep relationship you form with your banker over time will lead to better financial decisions, better long-term planning and more consistent support over the long term.
Everyone working at a community bank has a direct interest in uplifting and making their community a better place. That starts with providing financial support to local businesses and developing relationships with the community around them.
The strength of the community impacts the strength of the bank — and vice versa. There’s always a deeper incentive than you’d get at a national bank for ensuring your business stays healthy and successful. This incentive often leads to more flexible services and understanding when helping you and your business weather tough times.
Having a good relationship with a community bank can keep your business afloat during turbulent times. Unexpected events like sudden economic downturns, COVID-19 or damage to critical equipment could sink your business if you don’t have quick access to capital.
Community banks can provide short-term capital to get your business through a challenging period, often with more urgency and flexibility than national banks. Having quick access to critical funding options can be the difference between riding out a rough patch or losing a business. It gives you the capital to pay your employees, to fix damaged equipment and to implement strategies for adapting to the changing needs of customers.
Community banks also provide personal and detailed financial guidance. They know your business on a personal level and will provide critical feedback on how to maintain cash flow and budget and they’ll use their own cash management services to keep your business running smoothly.
Due to their size and the number of businesses large national banks support, you won’t get the same level of care you’d get from a community bank.
A community bank needs its community to survive and it’ll be more willing to pivot and adjust its services to keep its community afloat when tough times arise.
