Choosing The Right Bank For Your Small Business

First of all, choosing the right bank for your small business is so important! Today we would like to go over just a few factors that impact your small business and banking experience. Being a small business owner can be overwhelming. The right bank can make your day to day operations and reaching your goals THAT much easier.

Location, Location, Location – The Right Bank

No one want to stop and run an errand in the middle of a busy day. Especially when the destination is in an inconvenient location. Although the quality of the bank and their service DOES matter, the location is a huge factor. Choose a bank local to your small business. In a best case scenario they will have multiple locations, and also have one close to your home. Even though online banking and banking apps are convenient and advancing quickly, there will likely be a time that a trip to the bank is necessary. If you own a business that takes in a lot of cash and requires daily deposits, the location factor is HUGE.

Account Types & Products Offered – The Right Bank

Next, all business account types are NOT created equally. Recently I compared the checking and savings account fees from 3 local banks. One cost me ZERO dollars to open and maintain and I found the opposite at another that would have tallied over $200/month. Yikes. Do your homework and take your time. Sit down with a business banking representative and let THEM sell YOU. Make sure you have the right account for your business type. Many accounts require minimums and charge you if you go under.

In addition, it is important to consider your use of credit. Are you used to operating with a business credit card or line of credit? Shopping for a bank that offers great rates and good credit options for your small business may be important to you.

Relationships & Service – The Right Bank

A bank where every teller knows your name? SCORE! A bank with comprehensive hours that work for you? DOUBLE SCORE! When you choose a bank for your small business, these may not be the first things on your mind. However, they really can make a world of difference. Some banks are just better. They are quicker, more efficient and like to offer your solutions. If you go in to a bank and you don’t feel comfortable or valued, move on. There are plenty of banks out there that would love to have your business.

Credit Unions are wonderful options as well. We used the term “bank” here somewhat generically. Don’t forget to check into all of your local financial institutions!