Commercial Banking

The complexities of commercial banking can make the need for lender expertise imperative. The ability to help the business owner better understand the financial workings of their business is at the core of what it takes to be a great consultative banker.

From a small main street business to a large manufacturer, bankers need to be able to assess how best to use their products, services and expertise to help those businesses optimize profitability. Bankers Baseline helps your bank on the path towards a sustainable consultative relationship with your customers.

Refining your bank's image as a proactive consultative bank is at the core in creating a culture of loan, deposit, and business referrals from your existing clients. Whether it is helping your clients improve cash flow, unlock working capital, or protect themselves from payment fraud protection your clients' belief in your bankers and your bank is what creates the confidence they need to refer other business opportunities to you.

Case Study

The Problem:

Truck equipment supplier needs working capital
They do not understand the impact of aging inventory
The current bank is not proactive in creating a solution

Our Solutions:

A profitable well established (50 year history) existing client of a consultative banker found themselves in a position where they needed additional working capital but were not in a position to increase debt.

The consultative banker reviewed the situation and inquired about inventory on hand, especially aging inventory. The client told the great banker that yes they typically would hang on to inventory not wanting to sell it at a loss. The consultative banker explained how if they were to discount the inventory even below the original cost that they could generate a faster return on their investment than by holding on to it hoping to sell it a full price.

The consultative banker showed them an option to discount the existing non-performing inventory by 50% then reinvest the unlocked working capital into a more popular product. Since the more popular product had a quick turn around at a 25% margin it would only take three times through the cash conversion cycle to regain their initial investment. This strategy helped the client turn their aging inventory into a profit center moving forward.