Trends in business banking

“The past year has seen some growth, but most importantly, stabilization of revenues for many companies,” says Christopher Mixon, community executive and senior vice president at Bank of North Georgia in Gwinnett and Forsyth. “Businesses are now most concerned about how political uncertainty will impact revenue growth.”

There is ongoing opportunity for “survivors” to take market share they previously did not have. Mixon says that Bank of North Georgia funded a number of loans for business acquisition and lines of credit used to support growth this year. Nationally, 91 percent of small businesses report that their financing needs are being met adequately – a change from the past several years when banks were contracting and lending less.

Mixon has observed the business community’s reluctance to increase staff leading to a heavier reliance on technology. This has resulted in both capital expenditure increases and a willingness to embrace technological financial efficiencies for day-to-day operations. He sees an ongoing desire for consultative banking relationships to help advise and plan. Market research indicates that entrepreneurs are put off by automated, process-oriented transactions with their banks.

His advice for 2012 planning is two-fold: have ready liquidity and consider a loan. With uncertainty still ahead in domestic and international markets, Mixon cautions that, “Even if sales are increasing, you will need some liquidity to finance this new growth. Your customers are paying you in 30 days, employees need to be paid and inventory procured to fill orders.” He also comments that, “When considering an expansion or investment into fixed assets, a loan may not be a ‘four-letter word’ if it allows the company to remain well capitalized.”

Business products that firms are starting to embrace include remote deposits and a credit line sweep that allows you to immediately use all excess cash to pay down your line, while reducing your interest cost.

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