With a new year under way, the 2020 business trends look promising for great business growth. The real estate market is booming, which means businesses are looking for banking relationships to assist with growth plans and initiatives. Here is a closer look at how commercial banks will be important to maximizing business profits in this year’s trending economy.
Federal Rates Will Remain Stable into the Presidential Election Cycle
Historically, it is uncommon for the Feds to fluctuate rates during a presidential election year, so it is unlikely we will see large rate hikes in 2020. This is good news for Twin Cities businesses, as stable rates encourage growth. Consider 2020 to be a year to invest in new equipment, acquire a company, or pass your business on to the next generation.
More Business Owners Will Put Their Succession Plans in Motion
Anticipating rates to hold steady, business owners should look at updating or implementing a strong succession plan. Succession plans are complex and often involve multiple professionals, including bankers, CPAs, attorneys, and brokers. Beyond these professionals, businesses should connect with their commercial banker for important advice and guidance when incorporating a successful succession plan. A business banker can be a valuable and trusted resource and ally, helping to keep your succession plan up-to-date, financially sound and executable.
Continued Prioritization on Cyber Security and Fraud Prevention
As we covered last month, cyber security and fraud prevention are top priorities in today’s business world. Financial information has always been a target for crime, and cyber criminals are only getting more sophisticated about how they target financial data. It is important that businesses know their business bank is on the leading edge of fraud prevention services, ensuring network and mobile banking services are up-to-date, tight and secure.
Commercial Real Estate Loans Will Support Owners in a Tight Market
Commercial real estate is on track for another banner year of growth. Keeping focus of the types of credit available to your business can mean the difference between 2020 being a mediocre year or 2020 being a large profitable year. Based on your business plan, this may be the year to take advantage of one or more of the many loan opportunities available to help you achieve your 2020 business goals: real estate loans; working capital loans; and tenant improvement loans.
Capital Lines of Credit Will Help Seasonal Businesses Succeed
Stable rates may also make working capital lines of credit more attractive. In 2020, it is expected that employers across the region, from seasonal businesses to large manufacturers, will apply for capital lines of credit. Among other benefits, these funds allow owners to help fund and support short term gaps in daily cash flow, invest in key new hires, and purchase new pieces of equipment for continued growth.
Business Clients Will Ask for More Remote Banking Services
More and more businesses are choosing to take advantage of remote and mobile banking services. Remote scanners, online deposit, and bill pay are just a few of the many tools banks may offer to clients to ensure that funds are received and/or paid in an efficient manner. Many banking clients appreciate the ability to monitor their accounts and move money without traveling to their bank. With the conveniences growing, it is expected that more business clients will embrace remote banking services in 2020.
Clients Still Choose to See Their Bankers in Person
While remote banking will grow in 2020, banking clients will often choose to visit their banker in person. Working with a bank that has more than one location offers convenience and flexibility for businesses to manage their daily banking needs in person. Also, your banker should be flexible and willing to meet with you in your time and at your location. This added convenience allows you to maintain your business schedule while taking care of important financial matters that impact your business and your future.
Authored by Tony Jenkins, Vice President with Platinum Bank. Tony is a seasoned commercial banker/relationship manager email@example.com / 651-332-5217. For the convenience of our clients, Platinum Bank operates two locations in the metro area. Contact us to schedule an in-person meeting to discuss the daily and complex financial matters that impact your business. Visit our website at www.platinumbankmn.com.