Manufacturers in Southern California have access to pretty much any vendor you could think of right in your backyard: finishers, platers, material suppliers, technology providers, and financial institutions, just to name a few. While each of these partnerships is critical to running your business, we’d like to emphasize just how important it is to have a trusted financial partner.
Strategic investments in equipment, technology, and facility upgrades can be the difference between exponential growth and just another “okay” year. Establishing and maintaining a strong banking relationship ensures that manufacturers have the support and guidance they need to navigate these investments efficiently.
SoCal NTMA collaborated with Hiba Nabri, VP and Business Banker at First Citizens Bank, to discuss why you should maintain a strong partnership with your bank and what advice we have for manufacturers looking to strengthen their banking relationship.
Why a Banking Relationship Matters
It’s not enough to have a strong accountant in your back pocket. While they’re critical in reducing taxes and ensuring compliance, your accountant typically won’t provide guidance on structuring your finances for planned growth, equipment investments, succession planning, or other long-term goals.
This is where a knowledgeable banker steps in, offering financial planning options to help your company achieve its goals. Moreover, a strong partnership with your financial partners provides more than just access to credit; it offers valuable insights and strategic guidance tailored to your business’s needs.
Our Recommendations for Building a Successful Banking Partnership
1. Assemble a trusted team of advisors.
Manufacturers should establish a network of advisors, including a reliable CPA, attorney, and banker. This team works together to help ensure financial preparedness for equipment purchases, real estate investments, or other business transactions.
Here’s some advice directly from Hiba herself: “Find partners who understand your business and proactively offer suggestions.”
2. Conduct regular relationship reviews.
Ask yourself these two critical questions:
- When was the last time you had a comprehensive review with your banker? Your banker should know the story behind your numbers and share your goals.
- How often does your CPA communicate with your banker? If your CPA and banker aren’t aligned, you could miss out on valuable opportunities.
3. Develop a business plan—and share it!
Every manufacturer, whether a small job shop or a large-scale operation, should have a business plan that outlines financial projections, growth strategies, and investment needs. Making that plan is a critical step, but it doesn’t end there. Be sure to review it annually with your banker and CPA to ensure everyone is aligned and prepared for future decisions.
4. Evaluate your financial partners
Manufacturers often assess relationships with anodizers, powder coating houses, and material suppliers. Be sure to evaluate your financial partners with the same rigor by asking yourself these questions:
- Is your banking relationship truly meeting your needs, or is there room for improvement?
- When was the last time your banker reviewed your financials?
- Is your CPA aligned with your financial goals?
- Are you maximizing the services your bank provides?
If they’re not checking all your boxes, it might be time to talk things through or re-evaluate this partnership.
5. Lean on your manufacturing network.
One of the greatest advantages of being part of a manufacturing organization like SoCal NTMA is access to peer experiences. We recommend that you chat with your fellow members to hear if anyone in the community has had an excellent experience—or even a not-so-great one—with a bank or CPA. What resource could offer better insight than someone who knows what it takes to run a successful manufacturing organization?
With SoCal NTMA’s network and the support of trusted industry partners like First Citizens Bank, California manufacturing professionals can gain the insights and guidance needed to succeed in today’s competitive market.
Interested in joining SoCal NTMA’s thriving manufacturing network? Contact us to learn more about becoming a member.
