It can be challenging and frustrating to find the perfect bank and suitable account for your small business. It's an important decision that requires time. It will also need your attention.
You certainly want to avoid a bank that charges you an arm and a leg in fees. Simplify your life by finding a great bank for your business. Follow these tips to find the right bank.
1Start Your Search Online
You can find out more online, which will only take a few minutes, than driving around to different banks, which might take a few hours. Make an initial list of banks to check out further. Before long, you'll have a list of fitting candidates.
2Not All Banks Are Alike
Many people erroneously believe that all banks are the same. The banking industry is one of the most heavily regulated. However, there is still enough wiggle room for differences to emerge. Banks are free to create their own policies on account minimums, interest rates, fees, extra charges, services provided, and loan qualification criteria. Ensure that you're choosing a bank with the services you require minus the exorbitant expenses.
3Determine What Your Business Needs
Consider all the services you want your bank to provide for you and your business. Will you be taking out a loan, or are you just looking for a place to stash your cash? What is your monthly cash flow?
Can your bank of choice meet those requirements? It might be worthwhile to make a list of your needs and see how it meshes with the bank's offerings. Consider the types of accounts, deposit frequency, credit cards, wire transfers, loan availability, minimum balance requirements, payroll services, and any other services that you're interested in.
4Be Careful With Various Bank Fees
The fees are interesting. They don't seem significant until you add up how much they cost you over time. Always keep the prices in mind.
In the long run, the difference between 2% versus 1% can be costly. You might find that one bank provides free wire transfers, while another charges $15. Also, investigate whether or not a bank charges ATM fees.
5Speak To An Account Manager
Drive around and check out all the banks that are meeting your requirements. Stop and ask to speak to an account manager. Let them know what you're looking for, and they'll tell you all about their accounts and services.
6Assess The Bank's Service
How well do you like the bank and the employees? The customer service department and the compatibility you feel with the people in the branch can make a huge difference. A good relationship with those at your bank is important.
You might be inclined to work with a large bank. However, you might want to give the smaller local banks a look. Ask other small business owners about their experiences with these banks.
7Keep Looking For A Bank
Even after you find a bank, occasionally look around and see what other banks are now offering. Your new bank might be the best one for you at this moment. However, it might not in nine months. A lot of things can change over time, so always be ready with your options.
Finding a great bank is an essential part of your business success. Take the time to do your research. Figure out what you're looking for, and visit the banks that meet your criteria.
No one enjoys shopping for banks. But the success of your business demands it. A supportive and reliable bank makes life so much easier.
Jackie Wing is an Alaska native, who enjoys snowboarding more than is probably socially acceptable. She lives in Anchorage with her two dogs Reese and Peanut, or as she likes to call them "Thing 1" and "Thing 2."