Wondering whether it's time to switch business banks?

WomenEntrepreneuer spoke with Crystal Watkins, senior vice president /director of marketing for Torrey Pines Bank in San Diego, to find out how to assess your relationship with your bank.

The first step is easy, Watkins says. "Step inside the doors of the bank. See how long their lines are; see if people greet you. Take a look at who they are--it will be really clear right when you open the door how they welcome you."

Says Watkins, "It feels better to have someone who knows you by name, who greets you when you walk in the door and values you as a customer."

On the big-picture side of things, find out the bank's capital adequacy ratio (that is, the ratio of capital to risk). Investigate the bank's nonperforming assets (you want a low number: Torrey Pines Bank, for example, has nonperforming assets of 0.35 percent). Look into its ability to raise capital, especially in this recessionary environment. Ask about loan quality and the bank's loan portfolio. Watkins says a good banker will know the answers and provide the information you seek.

Ask about the bank's product offerings and find out whether it has a diverse product line. For example, Torry Pines Bank is part of a holding company, so if you have more than the $250,000 FDIC coverage limit, Torry Pines bank can apportion your money out to five affiliate banks. "We can have it go to $1.25 million," Watkins says.

A personal banker will also help you avoid fees, Watkins says. For example, some accounts are designed for businesses with high balances and high activity, and others for businesses with low balances and low activity. If you have a low-activity account and exceed that level of activity, you're going to incur fees. "I think it's important to have a relationship with your banker to help put you in the right product," Watkins says.

Find out what kind of cash management products and services the bank provides. Services can range from account analysis to zero balance accounts. Smart cash management can minimize fees and interest paid while optimizing cash balances and interest earned, Watkins says.

Watkins concludes, "You shouldn't put up with a bank that's not attentive to your needs. It's a privilege for us to have customers, and sometimes businesses don't remember that."For more insights on switching banks, read Aliza Sherman's column, "Do You Need to Divorce Your Bank?" And check out her accompanying blog post, "More Thoughts on Switching Banks."