6 Ways Financial Institutions Can Acquire Small Business Clients

Small businesses drive innovation and economic growth in their localities. However, they, in most cases, face a vast array of challenges. The most common challenges they face include accessing loans and other financial services. When partnering with traditional financial institutions, these businesses often encounter roadblocks that hinder their potential for growth.

Entrepreneurs who operate small or midsize enterprises or startups dread having to deal with high fees from banks and cumbersome account management. Some associate the traditional banking systems with outdated practices. These businesses have sought alternatives to overcome these challenges and find partners that better cater to their needs.

Digital banks and neobanks have since risen to this major challenge by bridging the gap between their financial institutions and small businesses. What is your take on the small business field? Is there a benefit of attracting them? And how can a small business directory help? Small businesses can be lucrative customers for credit unions and banks.

This article explores how financial institutions like yours can attract, maintain, serve, and benefit from small businesses. Also, it highlights how a small business directory can help you.

Why Small Businesses?

Experts in the industry agree that small businesses are a massive opportunity, especially for banks and lenders. Your financial institution will open the door to a diverse customer base by exploring the world of small businesses.

According to experts, approximately 63% of small companies feel that financial institutions don’t appreciate or value their businesses. They are after banking products customized to their unique needs. Whether tech-savvy, they are craving personalized financial services. Can your institution deliver?

The needs of small businesses stretch beyond savings accounts, checking, loans, and a strong banking platform. Let’s discover Things you can offer and do to attract small business clients.

Financial Advice

Should they remodel their office? What investment is good? What options do small businesses have for saving income responsibly and ensuring continuous working capital? Your financial institution can be the source of knowledge for small businesses. Help businesses make their funds go a step further with sound financial advice.

Investment Services

People are not the only ones who invest. Small businesses can also do the same. And your institution can offer those profitable investment services. Guide your small business clients well while helping them increase income by investing a percentage of those profits.

It doesn’t matter whether it is bonds, stocks, mortgage/real estate, or staying safe with money market accounts or CDs; it is important to work together to maximize their earnings.

Streamlined Payments

Distributing payments to workers is a pain. Ask your company’s payroll department, and you'll get the truth. What about recurring payments? For small businesses, anything that consumes time costs money.

Save small businesses by enabling them to automate payroll and other tasks that involve recurring payments. An excellently managed cash flow means a better-operated business able to deliver high-end services or products to its customers.

Loans

Most businesses need loans to operate smoothly. Approximately 33% of small businesses, cash flow is their major concern. And for many, it is a massive challenge. There is an 80% chance they’ll not be eligible, even though business loans play a key role in small business expansion.

Approximately 75% of small companies secure financing via:

• venture capital

• Credit cards

• Loans

Given these challenges, most do so via less-than-ideal arrangements. This triggers the question: "Is that serving small business clients?" Your financial institution can do better.

Corporate Credit Cards

You need to know what you purchased and how much you spent if you want to track your expenses. Empower small organizations with corporate credits that provide easy-to-use and strong purchase tracking.

Also, remember that every individual loves benefits and rewards. Think of what you can offer from your personal cards or something you can introduce specifically for small organizations. Ask local businesses about features they want from their credit cards and make adjustments accordingly. The results will surprise you positively.

Professional Recommendations

Small businesses know that you are more than a safe place to keep their funds. Your financial institution has a network of industry partnerships, account holders, and other arrangements. In simple words, you know a range of professionals.

Does a small business need a lawyer? HR consultant? Marketing agency? Accountant? Your financial institution can use its diverse network to provide a lasting solution. Create a portal to allow small businesses to access this vital information easier.

This is where a small business directory comes in. It allows businesses to browse a massive listing by a variety of classifications, including industry, geography, and more. Want to access a comprehensive small business directory? Find a reputable provider.