The quality of your banking relationship for a small business can make or break the enterprise. Not all banks are created equal so as a small business it’s crucial that you select a bank that offers services that support and grow small and medium enterprises. Here are some things to keep in mind when selecting a bank for your small business.
Your personal bank may not be it
It’s easy to assume that because your current personal bank works for you, it will also meet the needs of your small business. The convenience of staying with the familiar is one that intrinsically appeals to everyone. As inconvenient as it may be to be forced to research and consider the offerings from different banks, there’s no other option. Different banks prioritize different customer segments, and you want to cast your lot with a bank that will give your small business the support you need.
Examine the offerings
As you go over the different banks and the accounts they’re offering, consider the account fees, access to loans and lines of credit, terms, and eligibility, and more. Availability of loans, ease of access, and favorable repayment terms can determine whether or not a business survives. Research the bank’s reputation online, especially as relates to tolerance for the risks inherent in small businesses. Visit a branch and ask about what specific innovations and conveniences they offer specifically to small businesses. Eventually armed with all that research, you will be able to tell which bank and which accounts would be best for your small business.
One common misconception when it comes to banking is this feeling or idea that when it comes to banking you need to do so with ‘big money.’ So many people will save their daily cash elsewhere then once they have a significant amount, they transfer it to the bank. It is incredibly beneficial in the long run to save daily because it shows the bank that your business has a daily influx of cash. If you ever approach them for a loan, they have clear records showing your daily cash flow. No matter how small your business and how little you make daily, make it a point to daily deposit your daily earnings. It could end up being a lifesaver.
Get to know your banker
Even if you primarily use the online banking platform as most people currently do, make a point to occasionally stop by your local branch. Establishing a relationship with a business banking partner during face-to-face sessions will give you an edge when new support options and resources are made available. It also helps to have your relationship manager understand your business, they may be able to offer more targeted assistance and may even be more flexible when it comes to offering access to products like loans.
It should go without saying that your personal account and your business account should be completely separate. Don’t mix business with pleasure. If you’re already banking with a bank that does not prioritize small businesses, know that you can always move. If you do nothing else as a small business owner, try this one thing, deposit daily. Whatever you make each day should end up at the bank.
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