Have you taken a look at your company's banking relationship lately? Chances are you opened an account at a local branch when you started the business and haven't changed since. But your business and its banking needs have almost certainly changed.

Periodically, it's a good idea to examine how well your bank is serving your needs. You and your accountant or bookkeeper should arrange to meet with your local bank manager or loan officer. Your goal is to summarize your company's performance and banking needs, and then ask the bank how it can best serve you. Topics to discuss include:

• Fees. Is your current fee structure the best for your business? Explore alternatives that might reduce fees. Consider switching to an "analysis" method, where you earn credit for the deposits you maintain.
• Payment processing. Review how you pay your bills to vendors and how you deal with payments from customers. Would more use of electronic payment processing improve your operations? Would your business benefit from cash management techniques to improve cash flow?
• Loans. Do you have or will you need a business loan or line of credit? If so, discuss possible rates, terms, and alternatives. Remember, most banks want to make sound loans. Put that to your advantage in discussions.
• Deposits. Banks are also hungry for deposits. Discuss how much you keep on deposit and how you are compensated for those amounts. If your business has large cash balances at certain times, discuss possible short-term investments.
• Other services. Discuss other banking needs such as company credit cards for executives who travel.

Your bank should be your business advocate. Keep the communication open and the pressure on to make sure it fills that role.

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