As Montgomery businesses monitor current economic policy and outlook, staying strategic and nimble with financial planning is key. National and local economic factors – like tariffs, fluctuating interest rates and ongoing supply chain challenges – will continue to influence business decisions throughout the year.
To remain competitive, growth-minded companies must closely monitor financials. Economic uncertainty presents both opportunities and challenges, especially under a new administration.
Businesses seeking financing will also continue navigating a shifting lending environment as banks reassess risk. Here are four smart financial moves that businesses can incorporate to position themselves for success in a changing economy.
Montgomery’s Business Landscape
Montgomery is home to a diverse community of businesses and industries. From government, defense, construction, tourism, technology, manufacturers and automotive companies, the community boasts a wide-ranging economic landscape. This includes industry giants such as Hyundai Motor Company who is shifting production of certain car models to its Montgomery plant in response to tariff uncertainty.
However, looming tariffs may put pressure on local industries. An April survey from the Institute for Supply Management revealed a decline in manufacturing activity since tariff implementation.
Tariffs on critical materials such as steel, aluminum and automotive parts increase costs and strain operations. Local businesses must plan carefully to manage these pressures while sustaining momentum. Our clients are carefully reviewing their working capital needs to ensure lines of credit are available and sufficient when needed to take advantage of bulk inventory and purchase/materials discounts. A Guidance Line of Credit can be used to refinance high-rate, short-term equipment loans and have credit readily available.
Other businesses are taking advantage of Interest Rate SWAPs that protect against interest rate increases and eliminate one financial uncertainty from their project or business risk. One of our clients recently took advantage of this interest hedging tool to get an exceptional long-term, fixed rate on a business acquisition loan. Another client is using this option for an extensive capital improvement project.
Local businesses must plan carefully and acquire the needed solutions to manage pressures while sustaining momentum.
Smart Financial Decisions for 2025
Businesses looking to thrive through the rest of 2025 must focus on these strategic financial strategies:
- Strengthen cash flow: Optimizing receivables and payables ensures a steady liquidity and a financial cushion to help weather disruptions. Companies should also explore digital payment solutions and automation tools to streamline cash management.
- Explore financing options early: Given the changing lending environment, businesses should work with banking partners to secure better lending terms and explore asset-backed lending alternatives. Interest rate fluctuations may impact loan costs, making it important to assess both short-term and long-term financing strategies.
- Prioritize risk management: Companies should assess interest rate fluctuations, supply chain volatility and labor shortages to develop contingency plans. Consider diversifying revenue streams, securing fixed-rate financing or investing in workforce training and alternative suppliers.
- Build strong banking relationships: A trusted banking partner can offer tailored financing solutions and industry insights. Regular communication helps align financial tools with business goals and builds a foundation for long-term success.
Focus on Long-term Success
Financial agility is a key trait of resilient businesses. According to Valley Bank’s 2025 State of Business Survey, the businesses best poised for growth are prioritizing sound financial strategies and operational agility. Fast-growing companies say risk management, working capital optimization, and expense management are the most critical drivers of performance.
Establishing and maintaining strong relationships with financial institutions will also be key to not only secure better loan terms, but also to gain timely industry insights such as shifts in lending conditions.
At Valley, our Commercial Banking team partners with business leaders to understand their goals and deliver customized solutions. Whether your business is preparing for growth or simply maintaining its operations, it’s time to make a plan. Visit your local Valley Bank branch to speak with a banker.
~ Dana Moore is Vice President, Commercial Relationship Manager at Valley Bank in Montgomery and has been in the financial industry for 30 years.
© 2025 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
