Finding the right bank for your business needs is not a walk in the park. There are many choices and you need to run them through your requirements and choose the one that matches your profile the most. Especially if you are a startup or a small business you will find that the banks offer different financial services and products which vary in lending options, fees, and other perks. So how should you go about selecting the right bank for your financial business needs? Find out a few things you should consider before making the choice.
The Size of The Bank
Although when it comes to banking, it doesn’t always mean that bigger is better. Whether you go for a smaller community bank or will choose a large national bank will depend on your comfort level and the needs of your business. Big banks have a lot of resources, a lot of branches, and can offer more services. You can avail a lot of credit options from the bigger banks, which can offer you different perks for opening up an account or lines of credit with them. One such bank is the Bank of America. Check https://usa-banks.info/bank-of-america/ to see if they are the one you should choose.
On the other hand, a smaller bank will work with you based more on your overall profile and character and it might be easier to get a loan from them. Smaller banks are usually more attuned to the local market and hence they might even offer you a lower rate or fee to attract your business more.
Building a personal relationship with your banker is crucial, regardless of the size of the bank you choose. Securing a good relationship with the banker will invariably help you in tough times such as missed payments or trouble with fees. If you’re in the U.K, you can actually compare UK bank accounts for the best fees and prices available.
Check Your Credit
If your business is new or if you have a low credit score then it might be harder to get a line of credit with the larger banks. This is because they can usually pick which business they want to work with. This however is not the case with the smaller local banks who usually have less stringent rules when it comes to account openings or issuing lines of credit. So before choosing a bank, check what credit requirements they have to see if your business needs will be met by the bank or not.
Check the Locations
You need to really look into the location of the bank to see how far they are from your office, home, or any other areas that you will be traveling to. Here a couple of things must be checked out, for instance, do you often travel due to business and require to use the ATMs without having to pay any extra fees? Do you need to have certified checks that are issued by the bank? Do you need to be able to make daily or weekly deposits? The location of the bank affects all these factors. That is why if your business needs you to physically take service from the bank on a regular basis then choose one that is nearest to you. If you travel a lot within the country then you should best go with a bank that has coast-to-coast coverage.
What Digital Services Does The Bank Offer
This will broadly depend on how reliant you are on technology for your banking needs. Are you using cellphones a lot for your banking needs? That means you will want to automate the account online. If your business requires you to travel a lot or if your services are more tech-centric then you will naturally want to have more options available on a digital platform when you are dealing with the bank. If banking online is your thing then choose a bank that offers you the latest tech platforms for banking and can support your needs online as well.
What Are The Basic Services That You Will Require
There are a few basic services that all banks must offer. Some of these services that you should expect as a very bare minimum are: providing a savings account
- providing a checking account
- providing credit/debit cards
- providing a checkbook
- providing online banking services
- providing checking accounts for employees.
You should see if all these services are offered by the bank, how much they charge for the services and what are the requirements for getting these services. The fees may vary a lot from bank to bank so research this well. In case of more specialized needs such as opening a line of credit, you need to ask and clear it upfront. Signing up with a bank and only later learning that you are not eligible for a loan from them can be too little information too late.
What Perks Are They Offering
The banks offer many gifts or benefits to woo new customers. Some of the benefits that the banks will be offering are lowered insurance rates, help with tax prep, payroll services, discounts at hotels and restaurants, and cash bonuses when you open a new account. But don’t choose a bank just by seeing their perks. You will benefit, although, from asking what perks they offer to a new business account as they might offer you a discount or an added bonus.
What Type Of Support Are You Looking For
Some banks offer specialist staff support to help you with business growth. They can offer you expert advice on how to run your account, expand your business, and collect funds for growth. They also aid you in dealing with payroll or tax-related decisions. So when you choose a bank think ahead of what kind of support you require now and how much support you will need in the future as you grow. Getting expert advice from external specialists is always an option. But that would require you to pay extra and an internal resource may be better suited to help you as he knows your banking and financial details.
Rounding Up
At the end of the day by choosing a bank you are forging new relationships. You have to check if the bank goes well with your business needs. Does the bank make you feel comfortable? You should not compromise by choosing a bank you don’t feel at ease with. Since you will need a bank to run your business, you need to think ahead carefully about how choosing the right bank will benefit you. Having a good rapport with your bank will make running your business more comfortable so don’t rush into it. Choose wisely and be safe.
Interesting Related Article: “Why Every Successful Business Venture Needs a Business Bank Account“