What do bankers do for business

Although a business plan is required for most business loans, there is no guarantee that bankers will read your plan. Many are just filed away. Obviously you should prepare a plan to be read, and you can evaluate the bank by how closely they read your plan. A bank that wants a relationship with you will read your plan, because they want to know who you are and what you plan to do.

Here are some things they are likely to look for:. So the business plan is a two-way test. Although many banks will require a plan, not all of them will really process the plan.

Be grateful if they do. That means they are interested in your business and want to build a long-term relationship. Author AllBusiness. They can't loan you money just because they believe in your business plan. Laws that protect depositors' money prohibit banks risking that money on speculation.

Banks can make loans to borrowers who pledge assets they will lose if they are unable to pay. Many entrepreneurs pledge personal assets to borrow money for their business. I've done this myself by taking out a second and even a third mortgage to get the business through hard times. Understand that if you do this, you risk losing your house, your savings, or whatever else you pledge.

Most larger banks offer graduate rotations that may take up to two years to complete. Some banks bundle business and retail banking graduate rotations together, meaning that, as a graduate, you will experience what it is like to service both individuals and businesses.

Other banks separate the two. Either way, if you rotate into a business banking area, you will need to understand the needs of your business clients and how your offerings may help them. For example, if you are on the front line working as a business banker in a commercial centre or branch, you will work face-to-face with your customers. You will spend time working with businesses to understand what they are most worried about and what their goals and aspirations are.

This is a great opportunity to develop your people skills. If you rotate through the business banking area in the head office, you may help develop business banking products, or the opportunity to design tools to price the new products and assess their impact upon launch. These tasks will challenge you to build your business and commercial acumen.

Once you complete your graduate rotation, you can become a business banker, relationship manager, commercial lender, business banking product manager or analyst. At most banks, you will find that if you are a strong performer, your scope for career progression is high.

A commercial banker must not only have an extensive knowledge of the current financial world — he or she must also be strategic, have excellent customer skills and be a visionary for their clients. While the definition of commercial or business banker may vary across the board, he or she is generally responsible for forming new relationships and developing existing relationships with large corporate or small business clients. Business Bankers help their clients manage their finances in the most successful way possible and help them navigate the numerous services, procedures and products available, including stocks, bonds, loans, international transactions, real estate, trade credits, insurance policies and more.

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