Article: Stay Fiscally Fit During Economic Stress

Check out this article in Colorado Biz Magazine about banking strategies for small businesses during the market crisis and credit crunch.

First of all, don't panic. There are options for businesses seeking help and credit during this time, but it is more challenged. I really appreciate the point made by author Jay Davidson, (taken from the article, emphasis added):

Strengthen banking relationships
Now is the time for business leadership to make a conscious choice to strengthen their banking relationships. In fact, the value of relationships is critical. Where companies may not have needed their owners or shareholders to personally guarantee or support credit-lines in recent years, they most likely will again. One of the root causes of the subprime implosion was the abandonment of traditional lending standards. Most local community banks never abandoned these standards and did not participate in sub-standard activities. Consequently the community bank sector has been much less affected by the current problems. Businesses can help themselves by asking fundamental questions like:

Is there a person at the bank who you can confide in, who will listen and understand your needs and care about your business?

Do you have a banker who knows you, your business and can provide sound support?

If the answers are no, it might be the right time to consider a local community bank where personal banking relationships are highly valued. Professional firms can benefit from developing relationships and doing business from a community bank because they can count on more cost effective and efficient processes to help "weather" the storm.


Once again, it's all about relationships. This is what the business alliance is fundamentally for - to strengthen relationships between us and our local businesses.

I've been using Community Banks of Colorado since we started the Business Alliance, and they offer business checking accounts with low fees and online banking. I've never had trouble with their services (but I've never applied for credit) In any case, check them out. They're a small bank with good services, and they're a Founding Member of MHBA. And if you have had positive experiences with local banks, you can share about them in our online directory found at www.ColoradoLocalFirst.com