by Pete Zeiser
When evaluating banking relationships, small-business leaders often think about lending first—because access to reliable capital on a timely basis is the life blood of a business. However, deposits are crucial pieces of the puzzle as well.
Banks take deposits into consideration when making credit decisions. Not only do deposits provide direct evidence of a business’s liquidity on hand, but having your operating account at your primary lending institution gives your bank insight into potential credit needs. By monitoring deposit trends, your banker can anticipate seasonal cash-flow requirements, which may spur discussions about additional capacity needs prior to the business realizing those needs exist. Having a complete, holistic banking relationship, including loans, deposits and treasury services, allows your bank to provide the service your business requires to succeed.
Your deposits can also support your community. By banking locally with a community bank like Midwest BankCentre, your deposits are kept in the region. They become the source of loans for your neighbors to buy homes, start or scale businesses, fund educations, or meet personal financial needs. Each deposit dollar will circulate through your local economy six times on average. In turn, this process leads to new jobs, more business, and new tax revenues which support our schools and public services.
So, yes, where you keep your deposits matters. Where you bank matters. They impact the success of both your business and community.
Answers provided by Pete Zeiser, President - Chesterfield Commercial at Midwest BankCentre. He can be reached at 314-633-6762 or pzeiser@midwestbankcentre.com.