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, ongoing

supply chain challenges and

fluctuating interest rates—

will continue to influence

business decisions throughout

the year.

To remain competitive, growthminded 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.

BUSINESS LANDSCAPE

Montgomery is home to a diverse community of businesses and industries, including industry giants such as Hyundai Motor Company. However, looming tariffs may put pressure on local industries. Tariffs on critical materials such aluminum, steel and automotive parts increase

costs and strain operations. Our clients are carefully reviewing their working capital needs to ensure lines of credit are available and sufficient to take

advantage of bulk inventory and materials discounts. One of our clients recently took advantage of an Interest Rate SWAP, an interest hedging tool that provides an exceptional longterm, fixed rate on a business acquisition loan.

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 strategic financial strategies. Here are four smart financial moves that businesses can incorporate to position themselves for success in a changing economy.

Strengthen cash flow: Optimizing receivables and payables ensures a steady liquidity and 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 also impact loan costs.

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 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 build 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 fast growth are prioritizing risk management, working capital optimization and expense management.

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.

Whether your business is preparing for growth or simply maintaining its operations, visit your local Valley Bank branch to speak with a banker.

Dana Moore is Vice

President, Commercial

Relationship Manager at

Valley Bank and has been

in the financial industry for

30 years.

© 2025 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.

DANA MOORE

334.224.9340

68 CentrAL Inc!