2017-11-02 | Guide | No Comments
Finding a bank that is going to handle your small business it’s not a piece of cake and requires a lot of work. When you select a bank for personal checking and savings account, convenience and fees are the two primary factors that influence your decision, but chances are that your business probably has greater needs.
So, whether your needs are simple or complex, choosing a bank that meets your needs is essential. Consider these 5 factors in your search for your small business friendly bank.
Factor 1: Business Transactions
First of all, consider the kind of transactions you do on a daily, weekly and monthly basis. Do you make daily cash deposits? You should also think about the way you receive your revenue from your clients, and how you pay your bills for your business.
You probably should find a bank that doesn’t limit the amount of cash per billing period, and one that meets your needs in order to save you time.
Factor 2: Unexpected Fees
If you considered the kind of transactions you’ll need your bank to handle, it’s time to find out how much it will cost. Get a detailed breakdown of the fees your bank will charge for each service and be on a constant lookout for unforeseen fees and “free checking” advertising tricks. They may have many limitations or charge for online payment service.
Look for a business checking account that closely fits your needs and banking habits and always know what your bank offer includes in order to lessen the impact of fees.
Factor 3: Additional Business Services
Many banks that offer small business checking accounts also offer additional services catered to small business owners. They may provide payroll service, employee benefits administration, send invoices, collect client payments, provide investment advice and even tax preparation assistance.
Consider not just the services you need right now, but those you may need in the next two-to-five years as your business grows.
Factor 4: Personal Perks and Service
If you value a personal touch than you probably should choose a small local bank where you can develop a personal relationship with your banker. These banks may be more adjusted to local market conditions. On the other hand, large national banks may offer a lot of convenient ATM and branch locations, more online services and greater perk for using their services.
Whether you choose a community bank or a national bank, the most important things is that their hours of operation are convenient for your business. Inconvenient schedules can cost you time and money and nothing can make up for not being able to get help when you need it.
Factor 5: Borrowing Needs
Sooner or later, your business may need access to financing, whether a small business credit card or a loan to fund expansion. Ask potential banks about their loan options for small businesses, like whether they have landing authority and how large a loan can they approve. Compare their published interest rates with those of their competitors.
Take into consideration that smaller banks are generally considered to offer more flexible lending options for small businesses, but larger banks may be more willing to issue corporate credit cards.
Once you find a bank, view it as a long-term relationship. Meet with your bank at least once a year to offer an update on your business’ finances. They may see your growing business as an opportunity to provide more useful services. A friendly bank is proven to be a significant partner to your small business, helping you borrow capital and plan for the future, so put some effort into finding the right bank and nurturing your relationship.