The Banker, Client and B2B CFO Relationship

Oct 02, 2012




I.  Common Problems in the Bank/Client Relationship

1)    Businesses can’t properly forecast cash flow, revenues and profits, leading to surprises.

2)     Businesses do not calculate and stay in compliance with loan covenants.

3)    Management has insufficient financial experience.

4)    Companies perform inadequate due diligence on interim financial statements.

5)    Clients don’t properly record accruals and match revenue and expense so earnings jump up and down and it is difficult to understand if they were really profitable or not.

6)    Potential bank clients are unable to provide reasonable business plans and compile accurate business & financial models and cash flow forecasts.

7)    Bookkeepers and accountants simply track historical transactions.  Therefore bankers often have no one in the company that really understands its fundamental financial metrics. 

8)     Owners make many large investments and other business decisions based on gut and simple analysis.  They want to borrow money without really understanding the true ROI and financial affect on the company (and the bank!).  Bookkeepers can’t develop proper financial models.

9)    Most businesses don’t really understand where they are making or losing money – by customer, product line, geography and item.


II. How B2B CFO’s Bring Value to the Banker/Client Relationship

1.    A B2B CFO® enables the company to be more bankable.

a.    Ensures timely and accurate financial reporting to satisfy loan covenants.

b.    Implements key financial metrics to monitor financial health and analyze results.

c.    Adds the element of due diligence into the financial reporting.

d.    Provides advice and insight to help convert a problematic bank prospect into a bankable business, thereby increasing the bank’s business.


2.    A B2B CFO® allows the company to validate business plans and foresee potential financial difficulties enabling them to act instead of react.

a.    Compiles and validates business plans into credible financial projections.  

b.    Integrates cash flow, financial statements and operating metrics enabling the business owner to anticipate performance and the need of cash. 

3.    Introducing a B2B CFO® allows the banker to be seen as a “Trusted Advisor.”

a.    Strengthens relationships as the business owner appreciates the focus on his or her needs and sees the B2B CFO® as a cost effective solution.

b.     Strengthens relationships as the owner recognizes the banks assistance in managing the health of the business.


4.       A B2B CFO® strengthens bank relationships with existing customers.

             a.      Provides a senior financial professional on-site to ensure the bookkeeper/accountant is preparing statements accurately and timely, revenue and expense matching is correct and fraud or theft is not occurring.

            b.      Gives the banker the knowledge that the business is being run well from a financial management perspective and that there is good open dialog on important issues.

             c.      Educates the client on the importance of financial metrics to the bank.

            d.      Develops business plans and financial projections that articulate the company’s vision while satisfying bankers requirements.

             e.      Bridges the communication between the banker and the client to utilize the knowledge and benefits of the bank.

             f.      A B2B CFO® offers a free business evaluation for the banker’s clients (The GamePlan®).

            g.      A B2B CFO® helps improve bank collateral by helping their clients to increase inventory turns, reduce slow moving and worthless inventory and implement credit policies to lower bad debt and improve receivables collections.

            h.      A B2B CFO® can help a firm greatly increase profitability and growth, thereby making a much stronger customer with growing banking needs.

5.    A B2B CFO® increases qualified lead generation for the banker.

a.    Engages in developing new business and encounters clients in need of new banking relations. 

b.    Refers a prospect to a specific banker based on their specific client profile.

c.       Encounters prospects that may or may not require the services of the B2B CFO®, but need a new bank relationship.

d.      A B2B CFO® understands banking products and helps bankers get new cash management and other banking products into their clients.

About the Author

Rick has over 35 years of broad-based financial and operations experience in manufacturing, retail, construction, software, non-profit and service firms, and as a CPA and consultant. He has extensive experience leading companies through high growth, and is particularly adept at driving increased sales, operational improvement and profitability. Rick is also a Certified Business Transition ExpertTM and helps business owners to successfully transition their businesses to new owners, family, or employees.

View Rick’s Personal Website


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