For a long time now, community banks and credit unions have been entirely focused on playing the traditional lender role to small businesses. However, what these financial institutions overlook is the fact that most of these small businesses need improved management as much as they require the funds. Some banking providers now recognise this discrepancy, and they are devising innovative ways of offering holistic services to their small business customers.
An example of such institutions is Lead Bank, in Garden City, Missouri, which provides financial advice to its business clients through their business advisory team. The group, known as Lead Business Advisors, offers personalised consulting, transaction, and financial advisory services to the bank’s clients in the SME sector to help them achieve their organisational goals. Some of the services offered by the Lead Business Advisors include:
The bank realises that many small enterprises struggle with keeping their books of account orderly, up-to-date, and accurate, which is a great asset when filing annual tax returns, applying for loans, or searching for equity investors. Lead Bank’s financial advisory team offers comprehensive bookkeeping services to their business clients at a small monthly fee, which enables their customers to steer their businesses to profitability as well as attract competitive terms from creditors and investors.
Advice on mergers and acquisitions
At the start-up stage of most organisations, entrepreneurs rarely think ahead or plan for expansion, and most of them require professional help when they arrive at this point in their businesses. The Lead Business Advisors provide consultative services to business owners who plan to expand their enterprises through either mergers or acquisitions. They also advise entrepreneurs who intend to sell their businesses and provide guidance during the process.
Lead Bank recognizes that entrepreneurs start their businesses with the optimism that these organizations will be profitable and with the hope of high returns. However, a majority of small business owners lack the expertise and know-how to steer their enterprises to the financial success they envision. The business advisory team at Lead Bank helps these businesses craft a strategic management plan which guides their journey towards financial success and growth.
By providing these services to their business clients, Lead Bank has established itself as a leader in redefining the relationship between financial institutions and their business clients, and for many of their corporate customers, Lead bank is not only a credit provider but a business partner as well. In this kind of relationship, business owners feel more at ease with their banking provider, and they also develop more trust towards the financial institution. With its innovative solution, Lead Bank is empowering small business owners and giving them the hands-on tools they need as well as technical support to compete with more prominent firms. In exchange, the bank benefits from additional revenue from the fee-based services.
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