Banking Insights for Businesses

As a business owner, you rely on a team of trusted experts to help you navigate economic cycles, establish and accomplish business goals and set a course for the future. One member of that team should be your commercial banker, who can provide valuable insights and financial expertise to make your company stronger. Our regional leadership team is sharing how in this article, geared to set business owners up for success this year.

Meet our experts:

• Erick Maki, Regional President – South Region. Erick has been working in the financial industry since 1999 in various leadership and commercial banking roles. He oversees Merchants Bank locations in the South Region, which includes Caledonia, Lanesboro, La Crescent, Onalaska, Rochester, Rushford, Spring Grove and St. Charles.

• Dan Massett, Regional President – North Region. Dan began his banking career in 1991 and has served Merchants Bank since 2014. He oversees Merchants Bank locations in the North Region which includes Apple Valley, Cottage Grove, Cannon Falls, Eau Claire (WI), Hastings, Lakeville, two locations in Northfield, Red Wing and Rosemount.

• Dave Schlauderaff, President, Merchants Bank Equipment Finance. Dave has spent his entire career in equipment finance, beginning in 1998. He oversees Merchants equipment financing division.

What are key financial questions business owners should be asking themselves this year and why?

Dan: In my experience, a few of the core questions business owners should ask are:

• Do I have enough liquidity to manage both opportunities and uncertainty? 
• Is my debt structured properly for today’s rate environment?
• Do I truly understand my cash flow, not just my profit?

In today’s market, interest rates, labor costs, and input prices can change quickly. Businesses that regularly stress-test their cash flow, review borrowing structures, and understand their working capital position are better prepared to adapt. 

Erick: Another important question is…am I proactively planning for growth or succession, or simply reacting? A strong banking relationship can help business owners step back, look at the full picture, and make decisions with confidence instead of urgency.

Dave: From an equipment finance perspective, business owners should also take into consideration some of the recent legislative changes. A key question I’d recommend is…with Bonus Depreciation restored, how can I leverage financing to immediately expense equipment costs?

What local economic trends are having a financial impact on businesses, and how can a bank help address these issues?

Erick: Locally, we’re seeing businesses navigate tighter labor markets, higher operating costs, and more cautious consumer spending in certain sectors. At the same time, many companies are still experiencing growth opportunities, especially those that invest in efficiency, technology, or expansion into new markets.

Dan: A community bank like Merchants plays a critical role by staying close to our customers and the local economy. We help businesses manage these trends by structuring flexible financing, improving cash-flow management, and providing insight based on what we see across industries. We can move quickly and tailor solutions rather than forcing businesses into a one-size-fits-all approach.

As a regional president, what do you see as Merchants Bank’s role in the local economy?

Dan: Our role is to be a long-term partner and a stabilizing force in the communities we serve. Merchants Bank exists to support local businesses, families, and organizations - not just during good times, but through every phase of the economic cycle.

That means reinvesting local deposits back into local loans, supporting economic development, and being actively involved in the community. We work closely with business owners to help them grow, create jobs, and plan for the future. When local businesses succeed, the entire community benefits...and that’s something we take very seriously.

Dave: I would echo Dan’s comments. While Merchants Bank is well known in some of our markets, in other places like the metro area we are still a growing player. We need to continue to educate business owners that we are here and open for business. It’s our job to be a trusted advisor for any business needs and show up in the communities we serve.

What sets Merchants Bank apart from other banks?

Erick: What truly sets Merchants Bank apart is our relationship-driven approach and ability to meet the needs of any size business with our suite of commercial offerings, including wealth management. Our bankers live and work in the communities they serve, which means they understand local markets, industries, and challenges firsthand.

We also take the time to understand the why behind a business, not just the numbers. That allows us to provide customized solutions, quicker decisions, and consistent support over the long term. At Merchants, customers aren’t passed from department to department; they work with experienced bankers who know their business and are invested in their success.

What financing or solution offerings do you think are underutilized by businesses?

Dave: Equipment finance is absolutely a value-added product that business owners aren’t always familiar with. We find that many of our customers leverage financing options provided to them from vendors and dealers but miss the step of asking if those buying decisions are something Merchants can help with. We always appreciate the opportunity to work with our commercial banking partners and show customers how equipment financing can benefit a business.

Erick: One area that’s often underutilized is proactive treasury management and cash-flow tools. Many businesses still rely on manual processes when there are technologies available to improve efficiency, reduce fraud risk, and provide better visibility into daily cash positions.

Dan: We also see some businesses hesitant to revisit their credit structure. Regularly reviewing loan terms, lines of credit, and working capital needs can uncover opportunities to improve flexibility or reduce risk. A quick conversation with a banker can often reveal tools or strategies that make a meaningful difference.

What one financial strategy could have the biggest impact for a business right now?

Dan: Given the rate environment, many companies can significantly improve margins simply by revisiting their debt structure. Refinancing, consolidating, or shifting short-term variable debt into longer-term fixed obligations can create predictable costs and free up monthly cash. It’s one of the fastest ways to improve stability without cutting headcount or operations.

Dave: Business owners should talk to your tax professional now about 100% Bonus Depreciation and Section 179 related to equipment purchases. Recent legislative changes have created more opportunities for improved cash flow that supports long-term business success.

Erick: One of the most impactful strategies right now is tightening your cash flow discipline. Businesses that build a rolling multi week cash flow forecast - and update it religiously - gain the visibility needed to react faster, negotiate better, and survive volatility. In today’s environment, clarity on cash gives you leverage with suppliers, lenders, and even customers.