Mentor: Personal service key to banking

Q: What should a small business look for in a bank?

A: Ron Weitzel, a business manager with ANZ, says personal service is the key.

"Someone who you can go to immediately and are able to get quick answers from. That seems to be the overriding factor - someone that they can build a rapport with."

Banks generally will have similar products and services, and feedback from businesses confirms the notion that service can be the deciding factor when they are shopping for a bank.

But before even beginning the bank hunt, businesses should make sure they have a business plan and cashflow forecasts.

"But we also like to look at the bigger picture and see what sort of business they're in, understand that industry, see where the customer fits into that industry and what the market is," says Mr Weitzel.

The banking business market is competitive, with banks always on the lookout for good new customers.

"But obviously we have to take into account that for every five new businesses which start today, only one of them will be left in five years, " he says.

Bank business managers cannot give business advice - or they run the risk of becoming a shadow director to the company - but they can present a range of options to the customer.

They also have a duty of care to make sure customers can repay any loans they take out.

"We need to be satisfied that they can generate a profit which will be able to service the debt," says Mr Weitzel.

"All bankers have to follow that duty of care."

* Send questions to Mentor: Ellen_Read@nzherald.co.nz

Answers will be provided by Business in the Community's Mentor programme.