WorldWide Drilling Resource®

Drilling Into Money Not Boring by Mark E. Battersby Banks are Alive and Helpful Despite how important banks are to small businesses, the majority of small businesses appear to be experiencing problems with their banks and the services they offer. According to a recent survey, a whop- ping 69% of small business owners feel their current bank does not meet all of their needs and, thus, would be willing to switch banks. Choosing a bank involves more than simply opening a new account at the closest branch. First, con- sider what services are required by the drilling operation and how much they will cost. While many services provided by banks are also available from other sources, banks may be more convenient - and the costs may be less, depending upon the number of services or “products” used by the drilling business. Since fees for many of these services are often “bundled,” comparison shopping is a must. Has the time come to shop for a new bank? Obviously, there are both benefits and drawbacks to working with different banks, usually based on their size. Comparing small, medium, and large banks usually revolves around the type of bank: * Credit Unions offer some of the most competitive loan rates, but only members can apply for those loans. * Community banks are often a good fit if the top priority is person- alized service. * Regional banks serving an entire state or region are a better fit for medium-sized businesses, or small businesses with aggressive growth strategies. * Big banks are usually the answer if low fees and the latest online banking technology are important. They usually offer the best incen- tives for attracting new business. However, in the long-term, meeting the needs of the business will have a bigger impact on the health of the busi- ness than any immediate cash benefit. Banking relationships should be viewed as long-term - not what the business needs today, but what it might require 18 to 24 months down the road. Finding a banker who understands the drilling industry, the business’s creditworthiness, and seasonal borrowing needs is essential. Selling the banker on the operation’s growth potential and the opportunity it offers a bank for addi- tional services, is important. Once a drilling company has estab- lished a good banking relationship, it is a good practice to meet personally if only to update the business’s finances. While switching banks can be a hassle, advising the operation’s current banker of the shopping around can be reward- ing. Mark Mark E. Battersby may be contacted via e-mail to michele@ worldwidedrillingresource.com 25 WorldWide Drilling Resource ® JANUARY 2020