STARKVILLE — When Melda Kincaide opened her assistant and notary business, Virtual Click, in October, she didn’t know all the specifics of business banking.
In May, she heard about the Greater Starkville Development Partnership’s new B.A.I.L. series consisting of four sessions to teach businesses about banking, accounting, insurance and legal services. She thought it would make a good opportunity to receive facetime with local bankers.
“Networking is the key for me,” Kincaide said. “This (event) lets people know who’s out there and you get to know the people that are in your bank because everything is pretty much now digital or online.”
Kincaide was one of about 20 who came to attend the first episode of the B.A.I.L. series Wednesday at the Starkville Community Theater downtown. The event hosted representatives from five banking institutions to speak on their services and give advice for business owners.
Panelists were Sammy Slaughter of Guaranty Bank, Donna Sims of Renasant Bank, Steven Coleman of The First Bank, Brad McKenzie of Cadence Bank and Stephen Scarpulla of BankFirst.
During the session, panelists spoke about businesses familiarizing themselves with local bankers, how banks can help with loans and expanding a business through their services.
Sims and Scarpulla told those in attendance forming a relationship with your banker is essential for businesses to grow. Banks that know their customers are better equipped to review that business when it comes time for a commercial loan or for basic services, they said.
Scarpulla added that as banking services go online, it’s more important than ever for businesses to create that rapport with bankers and meet face-to-face regularly.
“The idea that I’ve got thousands of customers on my phone that can call, text or email me or whatever young people do now is mind-blowing. But having that relationship with a person, I think, is the most important thing.”
Slaughter said it also helps to review what online services from banks, especially if an owner needs a financial issue solved on the weekend. Services such as online deposits, out-of-office account assistance and mobile cash transfers, to name a few.
“(Business owners) may not step foot in the brick and mortar bank even once a year,” Slaughter said. “So you have to look at what online services the bank has.”
Panelists also discussed increased federal interest rates, which have caused commercial loan rates to also spike.
Slaughter and Sims both said businesses looking for a commercial loan today need to provide income reports and financial statements for review. Owners also need to know how they intend to use the loan and plan to repay it.
Slaughter also said banks will work with an owner to determine when is the right time to take out a loan, depending on how quickly the business can turn a profit on that investment and whether it’s a good idea to wait.
McKenzie said businesses should also use stress tests, which measure the strength of a business based on income reports, credit checks and sales numbers.
“The numbers tell us what works for a loan amount,” McKenzie said. “So as you sit down with your banker and say, ‘Hey, here’s my plan,’ we kind of gather that information and say if this will work or that we need to look at different avenues.”
Kirk Hutchinson, owner of Power of the Almond, a keto and sugar-free bakery, said he came to the session and learned more about financing options for his business.
“I wanted to learn more about commercial loans,” Hutchinson said. “As a business that is growing, we are trying to figure out alternatives and forms of finding funding for growing the business.”
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