Important Service Disruption:
NORWICH, NY (April 29, 2018) - As entrepreneurs think about starting or growing their businesses, often the first task that needs to be addressed is funding—whether it’s for new office space, investment in equipment, operating cash, payroll, marketing, or any other aspect of running a business.
NBT Bank works with small businesses throughout New York, Pennsylvania and New England and offers the following guidance:
These tips should help an entrepreneur get the most out of their discussions with their banker, but this is certainly not intended to replace that discussion. It is important that the entire banking team, from loan officers to financial planners, get to know the individual and their organization, including where the company is in the business life cycle and what their overall industry looks like now, as well as trends for the future. This allows the bank to not only support a company’s operations, but also the business leader’s aspirations.
This is similar to how a professional mentor might be identified for you and your business, and how that relationship forms. It’s not overnight, but rather it takes time to get to know each other. NBT Bank works with several different support groups and agencies on a regular basis because each individual business is different. The stage, industry and location of each individual business determines which of the local agencies are the best fit. It is truly a collaborative approach to assist customers in getting financing to meet their growth needs. Like a mentor, through the financing process, you should feel confident that someone has your best interests in mind, as well as knowledgeable and relevant advice to offer you.
This relationship is equally important after a business has been operating for several years, especially when the business owner starts thinking about growth. When the customer and the bank have an existing relationship, the bank is already aware of how the business has been performing and its cash flow cycle. Financing requests for growth initiatives often have the benefit of citing the proven financial performance of the business, and sometimes have assets to leverage for the requested funding. If a longer-term relationship has not yet been established between the business owner and the bank, then the business owner should be prepared to proactively explain why a past year may have been unusually successful or unsuccessful.
One of the most noticeable ways that a bank is able to create this type of personal relationship is by employing experienced bankers who have years of living and working in the area of their customers. And, while NBT’s corporate headquarters is located in the southern tier of New York, banking decisions are made in local communities—which allows for greater understanding of the local economy and translates into faster results and greater customization of services for local businesses.
Proper planning now for a minimum of the first two years of operation of a new business is critical to best manage the financial success of a startup, from the loan payment structure to being able to invest in growth. The same approach to long-term planning is important for existing businesses that are looking to invest in growth efforts. And whether you have been in business for several years or just completed your first quarter, it’s always important take some time to review your business’s financial needs and options.
Every organization’s situation is different. That’s why it is essential to work with a banking team that understands your business. By connecting with these types of commercial banking specialists, business owners will benefit from an experienced and dedicated team that can help to identify the most useful bank products and services.
Visit www.nbtbank.com/business to find and contact your local NBT Bank representative.
NOTE: Anyone considering any investments or financing should seek advice from an independent third party such as their financial planner or tax advisor.
About NBT Bank
NBT Bank offers personal banking, business banking and wealth management services from locations in six states, including New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine. The bank and its parent company, NBT Bancorp, are headquartered in Norwich, NY. NBT Bancorp had assets of $9.2 billion as of March 31, 2018, and is traded on the Nasdaq Global Select Market under the symbol NBTB. More information about NBT is available online at www.nbtbank.com. Member FDIC.
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