Even the best business clients reach their limits with banks. Maybe their credit ratings need to improve or their financials are not as robust as they could be to meet the requirements for additional funding. Whatever the reason, banks can still offer viable alternatives without having to turn clients away.
The Importance of Client Retention
Client retention is a basic component for successful relationships between business owners and banks. If a business client has reached their funding limits, and banks cannot provide additional solutions, one of two things occur. First, the business owner may consider funding operations and growth out-of-pocket. As everyone knows, this is a very risky move for any entrepreneur. Second, the business owner will shop around for other lenders, which would reduce client retention as a new relationship is started with a competitor. One of the biggest trends we have seen over the past few years is banks partnering with other lenders who can offer funding programs that supplement what the banks already provide. These partnerships improve client retention and give banks a much wider range of solutions to offer their business clients.
Realistic Options Beyond Standard Loans
Quite frequently, business owners need solutions that fall outside the purview of conventional loans. Accounts receivable financing to improve cash flow, equipment leasing options, and asset-based financing for working capital are just a few of the programs that fit the needs of business owners when they have reached their limits with their banks. Derix Capital Finance specializes in such programs and partners with banks so account holders can offer a wider range of solutions to business clients. This not only improves retention, but also ensures business clients keep coming back to their banks for continued funding.
Taking that First Step
For bankers who want to retain business clients and offer a wider selection of solutions to fit their needs, contact Derix Capital Finance. At Derix, we believe in holding secure and confidential partnerships with banks to improve retention and ensure successful long-term relationships.