As a small business owner, finding the right bank is very important. You can access fantastic funding opportunities if you pick the right bank. We’ve
As a small business owner, finding the right bank is very important. You can access fantastic funding opportunities if you pick the right bank. We’ve already laid out some banking tips that can make a difference for small business owners. We want to help you pick the perfect bank for your business. Here are six tips for choosing the right bank as a small business owner.
1. Know Your Business Needs
Before you pick a bank for your small business, you have to have an idea of your business needs.
If you’re just starting out you’re probably going to have different banking needs than someone who has been in business for a long time. But make sure you can anticipate your business needs.
For example, if you want to scale at some point, ensure the bank you’re opening the account with offers business loans and lines of credit.
Make a list of what is important to you and ask the bank representatives about them before you make a decision. For example, you may want to do business internationally so you may have to look for an international bank.
In addition to that, ask about:
- Access to business loans for small businesses
- Access to business lines of credit
- Ability to do bill pay
- The interest rates
- Monthly fees
- Card fees
- Fees for business checking accounts
- Payroll services if you have employees or plan to have them someday
- Availability of support
- And other features you’ll need
Even though you may want to hastily pick a bank and get started, take some time to really weigh your options. Choosing the right bank for your small business deserves some serious thought.
2. Check Out Your Local Banks
If you’re looking for a bank for your small business, start by looking at local banks and credit unions. They are usually smaller business-friendly, and customer-centric.
Local banks are typically easier to form relationships with. Since they have fewer customers than bigger banks, they have the time to give you more personalized help.
Having a great relationship with your bank is very important for becoming bankable and therefore accessing loans and other funding opportunities.
The drawback is that local banks usually don’t have the same amount of money as bigger international banks. However, depending on your needs, this may not pose a problem.
3. Check Out the Bank You Already Do Business With
Chances are you already do business with your bank for your personal needs. Even though they may not be the right bank for your business needs, evaluate them first!
This only applies if you actually like the bank already. If they treat you well and offer you convenience, then it’s time to consider them.
Pick up the phone, schedule an appointment and ask them about the kind of financial solutions they offer small business owners.
4. Make Sure They Have Online Banking
If you’re opening a new account for your business, make sure that the bank allows online banking. Online banking allows you to do various banking activities from your phone or computer.
That comes in handy for days when you’re busy and need to do a transfer without going to a physical location. Online banking also comes in handy when you’re traveling and still need to take care of your business expenses.
The good news is that many banks offer online banking, so that feature shouldn’t be hard to find.
5. Go With a Traditional Bank
Even though online banking is important, we don’t recommend newer banks that are primarily online.
If you’re unfamiliar, online banks do not have a physical location where you can do banking. People opt for online banks because, according to Nerd Wallet, they have lower fees and better interest rates.
However, they don’t usually have the features of traditional banks you want. Nerd Wallet notes that online banks don’t have face-to-face help since they don’t have brick-and-mortar locations. In addition to that, online banks aren’t usually one-stop shops. Nerd Wallet says, “Some online banks have outstanding savings accounts but don’t offer checking or certificates of deposit.”
6. Ask About Perks or Incentives
Many small business owners don’t know that one advantage of having a business bank account is that they may be entitled to certain perks or incentives.
According to Forbes, “Some business accounts and credit cards offer special cash back rewards, a longer grace period or “float” to pay your monthly bills for your business or other tools to help you manage your monthly spending.”
When exploring your banking options, be sure to ask about perks and incentives will be available to you.
These tips will help you make better decisions when picking the right bank for your small business. Choosing the right bank can open you up to many funding opportunities and enables you to take advantage of these opportunities. One source of funding we absolutely love is granted. Here are some grant resources that will increase your chances of getting your following grant:
- Grant Application Training: Step-By-Step Process to Winning Your Free Money
- The Winning Grant Application Cheat Sheet & Checklist
- Win Grants With Ease Masterclass Bundle
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