When it comes to picking a bank to handle all of your business’ financial needs, it’s important to note that your criteria will likely be different than when you select a bank for your personal accounts. Taking the time to investigate what different banks have to offer their business customers – and what they expect in return when it comes to fees – can save you from some big headaches further down the line.
With that in mind, in today’s blog we’re taking a look at some of the things you’ll want to consider when choosing a bank for your business – whether you’re just starting out or decide it’s time for a change.
Know What To Expect
When it comes to business banking, the number one priority (after financial security) for most business owners is customer service. When your point-of-sale goes down on the Saturday before Christmas or your credit card machines stop working, you want to know that you’re going to be able to pick up the phone and solve the problem – fast. So investigating how your bank treats their customers is a fair consideration.
Need some ideas? In addition to checking into your bank’s reputations with friends and colleagues, the Small Business Administration, the Better Business Bureau, etc., you can try calling the bank’s commercial or business relations representative and asking a question that’s customized to your business. They may not know the answer – but if they take the time to find out and get back to you in a timely manner, then you may have found a winner.
Big Or Small?
When it comes to trying a bank on for size, there are a few questions you need to ask yourself – and one of them is, how big do you want your bank to be? Those bigger, national “chain” banks have some pros – they’re often willing to offer more competitive interest rates, lower payment processing fees, and some even have promotional offers just for opening an account.
That said, small banks have some big advantages. In addition to having a locally based support team, small banks have more flexibility when it comes to lending – not because they aren’t governed by the same regulations, but because they’re able to account for a borrower’s character, in addition to their credit. Small community banks have a powerful incentive to invest in the community and stimulate the local economy – and that can be a great opportunity for a business owner with big dreams.
Fees, Fees, Fees
Last but not least, it’s important to talk about the bottom line. Some banks charge outrageous fees for everything – from ATM usage and cashier’s checks to printing account statements and payment processing – and things can quickly get out of hand. Small banks might offer some of these services for free or reduced costs, which can be a great benefit that keeps their customers with them for years. In tough times, smaller banks also have more flexibility than national institutions when it comes to waiving fees and offering flexible payments to loyal customers.
