Is Your Banking Relationship Changing?

Entrepreneurs may want to get a pulse of their current banking relationship.

Given the tightening of government control over the banking industry, many banks are required to strengthen their capital:debt ratios. As a result of this, banks are reevaluating credit lines and debt relationships with clients.

Entrepreneurs may want to sit down with their banker and get a sense of what is going on at their bank. It might be prudent to draw up backup plans if Entrepreneurs get a feeling that the banking relationship is about to change.

Ravi Patel

Consequences of Overdependence

The current administration is providing valuable lessons for Entrepreneurs.

If you extend a hand for funds or if someone forcibly “helps” you, be very, very leery. You never know what strings will be pulled later to affect your ability to run your business.

Current admistration behavior shows that money comes with huge costs – loss of independence and micromanagement.

Entrepreneurs seeking funds from lenders or equity sources should carefully evaluate the terms and conditions prior to commitment. More important, prepare and analyze “what if” options in the event of default. Are you willing to live with the consequences?

Ravi Patel

Utilize your Bank’s Service Offerings

Are you aware of all the services that your bank offers? How many services are you utilizing to make your business more efficient?

Entrepreneurs should demand from their bankers more than just a checking account and a line of credit. Ask your banker to visit your company and review with him or her the financial transaction processing issues that you might have. Banks have invested heavily in new technology to compete effectively in the advancing technological marketplace.

As Entrepreneurs, ask your banker for the same type of services that larger companies are utilizing to streamline their financial operations and reduce costs. Learn about the new services and develop a plan to incorporate them into you business.

For more info on Patel CFO Services, please visit my website at

Ravi Patel