You started the business, and now you’re making a little bit or a lot of money. How will you decide on a bank for your business? Of course, you can open an account where you currently personally bank, but will that bank offer your business all it needs to grow? Here are three things to consider when seeking a new institution for your business. Do you prefer in person or online customer service, what are the fees for your monthly expected cash flow and will your business future financing needs be met? To solidify your search, I would highly recommend interviewing banks and other business owners about the benefits of their business bank.
Some may think this factor isn’t as important, but customer service offered to new business can separate the multi-millions from the multi-headaches. Will your company prefer to bank in person or can your needs be met online? There are options, banking solely online, face to face encounter or possibly having both. Are you aware there can be fees associated with in-person and online banking options? Knowing this, in the beginning, will set the tone for how you feel your money is being managed.
Whether you’re generating $100.00 – $100,000.00, you want to feel secure about being able to discuss your finances at any time, not having to play a waiting game or number punching contest. Knowing what your business needs are for customer service helps in developing a relationship with that bank. Developing a positive relationship with your business bank will make all the difference in growing your business. Now that we have decided how we would like to interact with the bank, assessing the bank fees for managing our company’s cash flow is next.
The fees for cash flow
As you begin to generate cash flow you want to avoid any miscellaneous fees from your business bank. While most fees are easily waivable, knowing what they are up front is necessary in maximizing your business account. You want to keep as much of your business income as possible and avoiding unnecessary fees is essential. There can be minimum transaction fees, where after 200 or more transactions you may be charged for each transaction after that. As well as a minimum balance fee, where you must maintain a stated balance to avoid the fee.
Overall being aware of all fees upfront will keep more money in your account and less stress off your chest. Now we are interacting with our business bank, aware of any fees and how to avoid them., We’re now ready to make our money grow.
Future in financing
As you are starting your company, you want to choose a bank for growth. If your business needs financing in the future, this may be an important factor when choosing a bank. Inquire about the interest rates on funding. Is the bank active with the SBA? This can be important and in favor of your future financing needs depending on your business structure. Now may be a great time to think about your company’s growth needs. Where would you like to see your company finances in the future? As you assess your company growth needs, interviewing ideal banks can also give more info and insight on your company’s growth options. Also, inquire if they offer any perks for being a new member or valued customer.
Questions to ask when choosing a bank
Now that you have a little more knowledge in deciding on a bank, I would suggest interviewing the banks. Contact several banks online, in person and over the phone. Below are some questions to ask. Take some time to also think about your own business needs. Can you think of 5 additional questions you would like your business bank to offer that’s specific to your business?
- Will I be assigned a personal business banker?
- What’s your future financial growth options for new or small businesses?
- Is your banking institution associated with any of the SBA programs?
- What are the monthly fees for this bank (minimum account balance, transaction, etc.)?
- Are there any perks to being a new member or valued customer?
- What are the credit options for small businesses?
- How would they suggest establishing a positive relationship with that bank?
- Do they offer any education for new small businesses?
- Do they offer any growth plans for our small businesses?
You could also interview other small business owners. Ask them what they enjoy most about their business bank. And if you’re adventurous, contact a Fortune 500 or any admired company and ask to interview their accountant or financial staff. Ask them about their banking structure, why they choose their business bank, and would they have any tips for a new small business structuring its organizational finances.
This is your business, and if you want direction, it doesn’t hurt to ask.
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