National Bank general manager for business banking, Andy Somerville, takes the hotseat.
Why are small businesses important to banks?
The small and medium enterprise sector is a very important part of the New Zealand economy. SMEs make up about 90 per cent of the business market and so their success is integral to New Zealand's success.
We need to ensure we get growth back into the economy and support SMEs to grow to become larger companies and to remove bureaucracy for them so they can focus on the business they are in. The bank sees strong local representation in the business community as important which is why we have 340 local business bankers.
What support does the bank offer a start-up company?
Starting a new business can be tough. We understand the challenges of starting a business and try to support our customers through this important new phase.
The bank's start-up package has helped more than 12,000 customers through the first few years in business. We provide a combination of tools, guidance and transaction banking offers to make the start-up process a bit more straightforward.
How often should we talk to our bank and what should we be communicating to them about our business?
We believe open, constant communication is vital to business success and growth.
The feedback we have received from business customers tells us they want a bank which is an advocate for them. We do this by working alongside the customer and helping them achieve their goals.
Which person from the business should be talking to their business' bank?
It should be someone who understands your business, someone who knows where cash is and how much cash you need to grow. That way you are better positioned to identify an opportunity that offers sustainable, profitable growth for your business as opposed to a short-term win.
If the company is experiencing financial difficulties, will the bank work with them to try and make it work? How can I as an SME facilitate this?
If you are worried about your finances and think you might have problems meeting your repayment obligations, it is important to contact your business relationship manager as soon as possible to seek help, so we can work with you to find a solution.
The bank helped many SMEs through the recession by providing them with cash-flow planning assistance and working capital. Last year we held 250 free business workshops for 5000 business owners on topics ranging from managing cashflow to business planning and effective marketing.
Will the bank help find mentors or provide extra support for the company senior executives if asked?
For an SME, external advice to provide fresh thinking around how to seize emerging opportunities in this new environment, is vital.
We have access to professional expertise from bankers, accountants, lawyers, and business coaches who offer not only technical expertise, but also the knowledge and experience they have gained from dealing with a wide range of businesses and situations.
There are also opportunities to work with government agencies to enhance export opportunities.
The bank has also invested significantly in support tools such as workshop seminars and online tools to help business around business planning and how to manage cashflow.
We sponsor's the Bizzone Small Business Expo Seminar Series throughout the country. We had 40 non-stop seminars during the two-day events.
These seminars also offer networking opportunities to attendees who can learn from the experience of their peers.
If the relationship goes well with one company, will banks back entrepreneurs with their next subsequent companies?
We certainly do want to talk to businesses with good fundamentals and solid business characteristics, and to have funding available for them.
YOUR QUESTIONS
We want to solve your business problems. From tax headaches to recruitment nightmares - every week with the help of specialists, we will answer your questions on any topic relating to doing business.
Send your questions to Gill at: Southgill1@gmail.com.
