With the reputation that many see now a days, banks and small businesses may seem like they have nothing in common with each other, when in reality they actually have more in common than most people notice. Here are some common interests found between banks and businesses.
Many studies agree that risk is not a good thing. Banks don’t want to lend out money to a business that has a higher risk of failing by not receiving high revenue or spending their money correctly, and businesses don’t want to take that risk. After the crisis in the early 2000’s, banks became more cautious about who they were lending their money out to, especially because many businesses had to close and could not pay back their loans. Many people were afraid to take chances of opening new businesses. Today, banks and businesses work together to make sure they are on the right track of borrowing money and being able to pay it back. Banks are able to feel more confidant about who they’re loaning money out to and businesses can feel confident about their finances.
- Success and Trust
Banks and businesses both want to be successful. Typically, banks won’t succeed in their goals without customers and businesses won’t achieve theirs without banks. It’s a cycle that is crucial for success on both ends. Banks want a business to be successful so that they can pay back their borrowings and continue to help their customers through an established trusted relationship. Businesses want banks to succeed in their goals to establish a relationship, but also trust. A reputation is very essential in a world full of competition, therefore trust follows success in common shares of banks and businesses.
- Better Business on Both Sides
We know that following success and trust comes an established relationship, but this is crucial for business on both ends. A positive reputation leads to a growing business. When a business has a positive experience with a bank, they are more likely to refer more clients to the bank and establish more relationships. When a bank has a successful relationship with a business, they are also likely to suggest other businesses and clientele that could form more relationships for the business. This creates a network of contacts that are beneficial to both, businesses and banks.
Banks and businesses actually have the same goals and ideas, therefore it is crucial that a relationship is established amongst the two. They both focus on their risks, but also advocate for success on both ends of the relationship. This creates more contacts and allows banks and businesses to grow their network for a bigger future.