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Among the most important advisors to a
construction firm are:
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Professional surety bond producer
Knowledgeable construction/surety attorney
Construction-oriented certified public accountant
Small business banker
This presentation will focus on small
business bankers for construction firms.
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Bankers who specialize in developing relationships
with small construction firms
Bankers who know and have banked the construction
industry can provide invaluable business and financial
advice to contractors, subcontractors, and suppliers.
They understand the working capital, accounting
needs, and prevailing business practices of small
construction firms.
The best ones are eager to spend their time getting to
know you and your firm.
They help their clients manage their finances in the
most successful way possible and help them navigate
numerous services and products, including loans,
online banking, lines of credit, credit cards, and more.
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May require a college degree and five or more
years of related experience OR a master’s degree
with several years of relevant work experience
Business bankers often have degrees in finance,
business administration or management.
Small business bankers often have expertise in a
particular industry, such as construction.
You should find a small business banker who has
expertise in lending to small construction firms.
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Form and develop relationships with small
business clients and become a valuable resource
to clients
A face-to-face relationship between the banker
and the client makes a difference in the lending
and problem-solving process.
Help clients determine their financial needs and
goals and manage their finances in the most
successful way
Assist clients with services and products, such as
loans, cash management, bank accounts, lines of
credit, and others
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Have a specific industry expertise—such as in
the construction industry
Help to manage the construction firm’s cash
flow and to maximize the return on saving
and investments.
Assist small construction firms to improve
their credit position in order to successfully
apply for loans and qualify for surety credit.
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Mutual commitment
Respect and trust
Clear communication
Teamwork
Say what you mean and do what you say
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Remember that banking is a relationship business.
Each bank is different; although they are heavily
regulated, they make individual decisions that shape
the way they operate.
Not all banks desire to do business with small
construction firms; seek the ones that do.
Consider the banking needs of your business and ask
questions that focus on its needs.
What is the bank’s policies on loan qualification
criteria, account minimums, interest rates, and service
charges?
What are the bank’s fees for various services?
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Does the local banker have lending authority?
Does the banker understand the construction
industry and the needs of small construction firms?
Does he/she have knowledge of surety markets?
Is the bank a U.S. Small Business Administration
(SBA) certified lender ?
Is the banker comfortable with the SBA small
business loan programs?
Is he/she actively involved in local, regional and
national construction associations?
Is the banker committed to customer service and
periodic one-on-one meetings?
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Your professional surety bond producer can
be a valuable resource in recommending a
small business banker who would be a good
fit for your small construction business.
Ask other small construction firm owners
about their experiences with bankers.
Search the internet for banks and other
financial institutions that cater to the needs of
small construction businesses.
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Before issuing a bond, a surety company wants to know
that the construction firm has an established bank
relationship and line of credit.
The SBA offers lending options to businesses that
might not otherwise qualify for a conventional loan or
line of credit; your banker must know these programs.
Establish a good relationship with your banker before
your need a loan.
Small banks may be more willing than large institutions
to issue loans to small construction businesses in their
community.
Personal compatibility and customer service are critical
aspects of bankers; make sure you feel comfortable.
Choosing the right banker can have a big impact on the
success of your small construction firm.
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