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Avoiding surprises as your company grows

It's been said that bankers hate surprises. So who better to turn to in an unpredictable and volatile market such as this one than a commercial banking team that has the experience and know-how to navigate in any business climate? In this table of experts discussion hosted by Synovus Bank and held at the Miami offices of the South Florida Business Journal, bankers and business owners discussed the current economy and expectations for the future. They explored the impact of interest rates; tariffs, commercial lending and international markets; as well as how middle market businesses can work effectively with their commercial banking team to handle current and future risks. Amid an ever-shifting business landscape in and beyond South Florida, they also explored how the complicated global trade environment could impact the region's growth prospects and how working with the right banker can provide the operational and financial flexibility to thrive in uncertain times. The main takeaway from the discussion was clear: when a business needs help preparing for the unexpected, a bank can help; business owners should not hesitate to make the call. 'Whether it be the impact of tariffs on your profit margin, a supply chain snag, or some other situation, if you see something happening that will affect your business, say something,' reiterated Michael Walker, Executive Director of Middle Market Banking at Synovus Bank. The discussion also explored current business conditions from the unique perspective of two South Florida-based companies. One was that of Willy Rosell, chairman of Seafarers Inc. The company offers fresh and frozen seafood, often imported from overseas markets. The other was Sam Nehme, the owner of Broward Motorsports, a leading dealer of new and used motorcycles, scooters, ATVs, personal watercraft, power equipment and boat trailers from Miami to Orlando. Like Seafarers, many brands among Broward's product line that include Can-Am, Honda, Kawasaki, Sea-Doo, Spyder, Ducati, BMW, KTM, Triumph, Suzuki and Yamaha are imported. Each shared how they've relied on the experience of their banking and financial partners to improve their response to unpredictable times. Five years later, COVID lessons remain Five years after the global pandemic disrupted the world economy, businesses have learned a thing or two about how to face unexpected and unprecedented circumstances. The ability to adapt quickly to an uncertain future has become table stakes for companies facing direct impact to revenues, cash flow and overall profitability. The experts acknowledged the challenges of the COVID era, during which companies learned to handle supply chain challenges, factory slowdowns, inventory issues, supplier struggles, and sluggish customer demand. Many businesses worked with their bankers to take advantage of $792 billion in Payroll Protection Programs (PPP loans). For Rosell's business, ordering and pricing, in particular, proved especially challenging, he recalled. Facing pandemic-era supply chain issues, the company learned to better balance inventory, adjust pricing and meet customer demands. 'In the end,' he said, 'it was very profitable.' 'On the banking side, bankers needed to put in extra time working with their clients during the pandemic to understand how their business was being affected and how they needed assistance. That's the timelessness of the banker-business customer relationship,' Walker said. 'This is where we shine. We truly want to be a trusted financial advisor to the client. Together we will work toward a solution.' Despite the challenges of the COVID period, resilient companies were rewarded with post-pandemic growth. Both Rosell & Nehme say the market eventually recovered, delivering record sales. Nehme called it a 'learning curve' with 'a lot of adjustments.' A new uncertainty: Tariffs Fast forward to 2025 and new struggles have emerged. The economy has been strong, but for businesses that import so much of their product, how will tariffs effect South Florida businesses' ability to handle new, never-before-seen challenges? Rosell reiterated what some have been warning of—there will be some economic suffering on the path to prosperity. At Seafarers, the process of importing seafood - from order to delivery - can take up to 90 days. Importers are planning for near-term purchases; longer-term planning lacks any certainty. Case in point: The Friday before this discussion, about 100 containers were cancelled. The week after, the administration delayed implementation of higher tariffs on China by 90 days. 'A lot of companies are not making decisions about what to buy through the end of the year,' he said. 'There's a lot of questions out there.' With the varying tariffs - or 'import duties,' as he suggested - affecting source countries differently, importers small and large are still questioning how much of the cost to pass on to consumers. That's where communication plays a role, said Jim Baiter, regional credit officer with Synovus Bank. Working with his banker, Rosell prepared his company for financial uncertainty. He diversified and balanced his suppliers to multiple countries throughout the Americas and Asia, and effectively diversified his risk. By staying in close contact his banker, Rosell was able to recalibrate his approach based on evolving market conditions. Nehme stocked up his inventory. With some 3,000 vehicles currently in stock, he's selling his current stock. Yet, he doesn't want to order too much new product, concerned what demand may be with tariffs possibly causing prices to rise. Already, some brands he sells are moving their manufacturing to the U.S. 'In a nutshell, we're going to wait and see what happens,' he said. 'For south Florida, it's going to hurt a little to get there, but at the end of the day, it's going to be a good thing.' Rosell also sought financial flexibility to withstand the uncertainty that tariffs could bring. He leveraged his strengths to position Seafarers to better weather the challenges, Baiter said. For a banker, it is important for clients to know that they need to minimize surprises and understand the need to communicate with the bank in order to help plan for their future. 'It's about selecting the right client, having the conversation, creating balance, and being there to help them out,' he said. 'The person who puts their head in the sand, we worry about them.' Different sources, different solutions Baiter highlighted the differences between Seafarers' and Broward Motorsports' sourcing models. Rosell imports from brokers who source from suppliers, whereas Nehme works with global manufacturers, often ordering and paying with traditional terms. Their credit instruments vary, as do their terms and conditions. Rosell might need more money up front; Nehme employs working capital. Both face implications from tariffs. 'They're both dealing with tariffs, but from completely different angles,' Baiter said. Over two-thirds of the buyers at Broward Motorsports finance their purchases. Nehme believes the Federal Reserve will decrease interest rates this year; maybe not to COVID levels, but a cut will drive consumer sentiment and purchases and enable companies to grow. Manufacturers such as Honda and Yamaha have their own financing departments, whose offers can help drive sales. However, if higher rates spook consumers and banks, market nervousness could lead to lower demand in the near term as everyone works to better understand how these policy changes will affect them. Florida has been buffered from some of the sluggishness experienced by other parts of the country. Consumers here are eager to buy a motorcycle, ATV or personal watercraft and will often look past the greater economy and make a purchase, Nehme said. Within reason, he doesn't expect tariffs to dramatically impact sales. Broward Motorsports' Honda and Yamaha products from Japan generally face a 10% tariff. Yet, specific items, like cars and auto parts, face a higher 25% tariff. The proposed 24% tariff on some imports to the U.S. has been temporarily paused. A 10% price hike won't dissuade his customers. 'Florida always handles it better,' Nehme joked. 'People will buy a new motorcycle before they put a new roof on the house. People want to use their toys.' The market's evolving nature requires focused attention on trends and sentiments, he added. His company might source more used inventory, for example, but will turn to his banker for guidance and support as part of the process. 'You need to adjust and maneuver to what's going on,' he said. 'When you're dealing with someone one on one, and they know your business, that's what defines a good partner.' Rosell asserts that Synovus excels in this regard. He believes Synovus is more eager to work with customers than other banks. It's this kind of structured, thoughtful approach to business operations and potential growth that clients want to see. Baiter summed it up as it the difference between being transactional versus relationship-driven A transactional customer may leave for 25 basis points on a loan and not value the banker or the relationship, he said. A customer that truly understands and values the relationship is in it for the long haul. 'With communications comes understanding that allows a banker or financial partner to lend insights,' Walker said. 'If we understand what's driving a situation, we can deliver consistent solutions to help the customer today, and into the future.' Reacting to changing currents Change is inevitable. Rosell has worked with some customers for 15 years; they understand higher cost of goods, whether from interest rates, tariffs or other expenses on his part and 'will not require an explanation.' Profit margins might change. Baiter acknowledged some smaller companies might go out of business, which can lead to opportunities for others like Seafarers to capture additional market share. Asked whether market conditions can better position a company for uncertain times, both executives are exploring their options. Broward Motorsports has entered markets beyond its current locations. In 2023, they added Palmetto Motorsports in Miami. They might not have made that deal in years past, Nehme said, but he sought counsel from his long-term relationship banker with Synovus. In early 2025, Broward Motorsports began looking for shop owners hoping to retire or exit their businesses and has been contacted by others exploring their options in questionable times, Nehme said. His banking relationships open the door to new possibilities. 'I look at it as taking advantage of available opportunities, particularly for us to go out and acquire more,' he said. Rosell is looking for smaller distributors and importers, including those he's built strong relationships with in the past. 'New markets are important,' he said. Closing thoughts Executives agreed that technology is aiding in the pursuit of daily business operations and new opportunities. Bankers are deploying customer relationship management (CRM) solutions and exploring artificial intelligence to manage workload, marketing, even performing due diligence on investments and other projects. 'We're looking to use AI for aspects of the business where it makes sense. It's designed to help us be more efficient, and understand potential risks,' Walker said. 'AI won't replace the banker, and it won't be able to understand the character of our clients or the relationships we build with our clients like bankers do today.' In that case, bankers are leaning in on relationships. Like Seafarers and Broward Motorsports, Synovus sees south Florida as a vital market, a place to expand market share. To better serve and find customers like these, the bank is hiring staff who understand the market and its players.