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Is your bank truly supporting your business?

In the past, your bank manager was a pivotal figure in the success of your business. However, in today’s digital era—where banking is increasingly focused on online transactions rather than personal relationships—is your bank genuinely supporting the sustained growth of your business?

The latest Australia Business Banking Customer Report from Publicis Sapient offers key insights into the current state of business banking services:

  • 40% of SME customers report being only ‘somewhat positive’ about their bank.
  • 79% of SMEs prefer digital banking, but 59% still value access to local branches.
  • 78% of SMEs prefer digital payments, yet 49% oppose the elimination of cash services.

These findings highlight a significant period of transformation as banks and SMEs shift from traditional banking models towards a digital future. Yet, the question remains: does this evolution truly add value to your business?

The digitisation of banking presents undeniable benefits. Managing your finances from a mobile device is a substantial improvement in convenience. Initiatives like Open Banking further enhance accessibility to financial data. However, key considerations remain: does your bank provide meaningful financial guidance, and do you have access to the working capital and long-term funding necessary to expand your enterprise?

Five Strategies to Enhance Your Banking and Access to Finance:

  • Engage with Your Business Banker
    Establishing a relationship with your local business banker can provide tailored financial advice and support. Discuss your financial objectives, challenges, and growth plans to explore suitable financing options such as business loans, overdrafts, or lines of credit. Investigate any available government-backed loans, grants, or tax relief schemes to support your business’s development.
  • Evaluate Alternative Finance Solutions
    If traditional bank financing falls short, consider alternative options such as invoice financing, merchant cash advances, or industry-specific loans. These solutions can provide quick access to capital, but it is essential to assess interest rates and the impact of repayments on your cash flow.
  • Explore Private Investment Opportunities
    For businesses with significant growth potential, private investment from angel investors or venture capital firms can provide essential capital. While this enables rapid scaling, investors typically require equity and may seek strategic influence over the company’s direction.
  • Consider Crowdfunding
    Crowdfunding platforms offer a way to raise capital through contributions from interested customers or small investors. Depending on your business model, options such as equity crowdfunding, reward-based crowdfunding, or donation-based crowdfunding may be appropriate for funding new projects or product launches.
  • Reassess Your Banking Relationship
    If your current bank does not adequately support your financing needs or business growth, it may be time to explore alternative providers.

Our team can assist you in navigating the expanding ecosystem of alternative lending and financing options, ensuring you have the resources required to achieve your business goals.

Graham Burfield
Author
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