'It’s a business banker’s job to be proactive'

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Creating a sustainable business requires help from professionals outside the industry. One expert you might have overlooked: a business banker. We asked Lisa Long Jackson, CCIM, senior vice president and commercial lender at Pinnacle Financial Partners, how to get the most out of a business banking relationship.  

What are a few ways a business banker can help? 

Construction companies should meet with your business banker at least once per year. They can be your advocate and help you keep up with current trends. Fraud protection tools are important right now. If you’re writing checks and paying via auto debit or ACH, you should contact your banker and ask about fraud protection services. Finally, construction companies need insurance and bonding and many banks have insurance partners.

What’s one thing construction business owners should understand better?

Set up a line of credit before you need it. Yes, you will be paying an annual fee, but you’re prepared if someone doesn’t pay you in a timely manner. Credit lines should only be used for the short term, 12 months or less, for things like financing needs, and not for equipment or major purchases that may take longer than 12 months to pay back.

What else should construction businesses know about working with a business banker?

It’s a business banker’s job to be proactive in knowing the clients in our portfolios. That means we need complete tax returns to evaluate any loan request and interim financial statements, profit and loss and balance sheets dated within 90 days of the request.

Can business bankers help smaller construction companies too?

If your business is new or generates less than $1 million in gross revenue, you should still ask to meet with a business banker. In most financial institutions, they can introduce you to a colleague that they know and trust if your company isn’t ready for a full-time business banker. If you can’t find a business banker willing to talk with you, you may want to look for a different financial institution.

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The Level is written by Margot Lester and edited by Katie Parsons.