Right now the economic seas are choppy, inflation is persistent, supply chains are disrupted, and markets are in flux. Yet amid all the chaos, the small businesses at the heart of our communities are looking for a way to navigate against the headwinds. For 20 years, we've financed and partnered with small businesses through thick and thin. We'd like to share some of what we've learned to help you support your small business clients.
Small businesses are unique - they are real people with real dreams. As a lender you are in a unique position to support them as a partner and stabilizing force. You can help make the difference between survival and closer for the small businesses in your community.
But how? By sharing that there is a more stable and successful world on the other side of this storm, and helping them to move forward with confidence and support. Here are some time-proven reminders of things people in your position can do now to strengthen and grow your value to your small business clients.
Reach out first. Then listen to understand.
Now is a good time to carve out some of your valuable and admittedly overstretched time to pick up the phone and reach out to the small businesses within your client base. This isn’t suggesting you reach out as a sales call, but as a listening call. What are they challenged with? What are their concerns? Ask open ended questions with the intent to open them up and see if they’re doing alright.
Don't wait for your small business clients to reach out when they're in crisis. When a small business client starts to default on a loan it might be too late. These small business owners are likely even busier than you are and might not think to reach out to you first. Your bank’s technology can help you enhance these relationships also. Use your CRM system, or empower your relationship managers, to initiate contact by email, phone, or through your secure portal.
Be ready to adapt with creative solutions that vary across different types of businesses.
Some small businesses will be minimally impacted by the current economic uncertainty. Others have already felt a large impact for different reasons. What is the root cause for their pain? For example, if a business relies heavily on an unreliable overseas supply chain, can you help them with flexible repayment options? Does their current financing meet their needs in the short and long terms? Interest only periods or extended terms might protect your balance sheet and ease a small business’ cash flow pressures.
Support your staff with tools and training.
Managing difficult conversations with a client is a talent but it’s also a skill that be learned. You can prepare your client facing team with a little training in this area; it’s a life skill that will make them more valuable for years to come.
You also can help keep your staff up-to-date on current economic events and how they impact banking. Armed with good information, your staff will help clients feel that your institution is on top of the latest developments and responding accordingly.
Be a connector for the stakeholders in your community network who can help small businesses.
Your clients, your institution, other leaders with diverse business expertise - you’re all in this together. You can be glue that brings people together by hosting educations workshops, webinars, or meet-and-greets for small business leaders to hear from and mingle with other experts like lawyers, economists, real-estate professionals, academics, you name it. Who knows what sorts of new ideas and solutions will come from you just bringing people together. You will be remembered for it.
Transformational businesses and banks are born from transformational times.
The winners that emerge from economic storms have shared qualities - they are flexible, they adapt, and they innovate.
What areas across your lending process can be altered to more effectively serve the needs of small businesses and make you a more agile lender? Some ideas might include:
- Digital lending platforms: Streamline loan applications and approval processes to provide small businesses faster access to capital.
- Customer relationship management systems. As mentioned earlier, CRM systems are helpful to track, communicate one-to-one with clients, at scale.
- Embedded lending solutions can be quickly and securely integrated into your platform. They enable you to offer more small businesses the funding they need, without the need to scale or expand your small business lending program.
In times of uncertainty, small businesses need more than just financial support. They need a partner who understands their challenges, offers flexible solutions, and provides valuable resources. By embracing these strategies, as a lender you can be a vital lifeline for small businesses, helping them navigate the storm and emerge stronger.
We’re happy to share any resources or support, or just discuss what we can do to support you and your small business clients. Feel free to reach out to our team at enterprisesales@rapidfinance.com.