Do you have customers who are rapidly growing or facing a restructuring due to a downturn in their business cycle? Either scenario can create additional risk to your customer’s banking relationship.

The most effective way to manage the incremental risk is to maintain regular contact with your customer’s CFO. If your customer is a small- to medium-sized business, they may not have the budget, bandwidth or need to hire a full-time CFO. Fortunately, many companies are considering hiring a part-time CFO to fill a gap and take advantage of the strategic financial and operational expertise they possess.

Value Provided by the Part-Time CFO

CFOs are forward-thinking strategists who help businesses navigate the strategic and financial challenges faced on a day-to-day basis. They implement analytical tools and processes that create sustainable cash flow drivers designed to increase the efficiency of working capital, improve margins and drive cash flow generation. The CFO becomes a sounding board for business owners and works collaboratively to develop and execute plans and initiatives that will increase growth and profits, lower overall operating costs and create long-term value to stakeholders.

Other intangible benefits include bringing strategic guidance, advice and leadership to the management team and providing mentorship to key business associates. Most importantly, they provide stability and peace of mind for the business owner, allowing them to concentrate on their vision for the business.

Indirect Value to the Banking Relationship

The value provided by the part-time CFO positively translates to the banking relationship by reducing risk and improving the management and financial sophistication of your customers. Your CFO/customers will:

  • Establish regular communication throughout the year
  • Provide forecasts and supporting documentation for loan
    requests/renewals to facilitate underwriting/loan committee approvals
  • Have processes in place to ensure they comply with loan covenants
  • Develop a stronger balance sheet and have improved profitability and cash flow for your customer
  • Lower your customer’s risk to the bank and likely require additional bank products and services

Bankers are able to distinguish themselves from their competition by referring part-time CFOs to their customers based on relationships they’ve developed with reputable firms. While part-time CFOs who work on their own are very capable, there is exposure if they suddenly become unavailable for some reason. You can mitigate that risk by establishing relationships with a part-time CFO firm who has many experienced people on staff and can provide additional resources and security.

Do you have prospects or customers in your book of business that could benefit from an introduction to a part-time CFO?