One of the most important decisions you will make is choosing a bank for your small business loan and account needs. The choice of a bank will determine how your business will be able to conduct its financial business. It can limit you or it can set you free. Banks should offer more than just deposit and loan services. They should offer advice and counsel, guidance and support, investment services, and industry expertise. If the bank you are considering does not, then look at other banks. Here are some tips.
Difficulty: Average
Time Required: Ongoing
Here's How:
- The bank should offer the kind of checking and savings accounts you need without large service fees (or any service fees!). Your hard-earned money can be eaten up by high bank service charges. Find a bank that is happy to have your business and does not charge high service fees for it. You also want the bank to offer a variety of business checking accounts you can choose from so you can find one that will meet your needs.
- Choose a bank with good loan officers that will negotiate both term loans and lines of credit with you. A bank is no good at all to a small business unless they are able and willing to loan you money. Talk to the bank's loan officers. Let them look at your credit history and credit score. Find out how easy it will be to apply for an get approved for a bank loan or line of credit in the loan officer's opinion. If the loan officer is tentative, look for another bank. You'll need money for working capital needs and expansion.
- Make sure the bank offers online services. In today's world, life is easier if you can bank online. Even if you still want to make bank runs, it's nice to be able to check your balance every morning from your computer. Chances are, you'll be too busy to go to the bank for anything but loan applications and the more complex bank services. Since you are giving the bank your business, online services should be free. If not, shop around.
- Not only do you want online services, but you want one of those services to be online cash management. For example, you want to be able to send invoices and cut payroll checks online. The bank may charge a service fee for this. If so, make sure it's fair and low.
- Does the bank have a small business adviser on staff? If you are looking at giving your business to a larger, regional bank, there should certainly be such a staff person. If you are going toward a smaller, community bank, there are probably several people in the bank that are quite aware of the business community that can help you.
Tips:
- Check out both small, community banks and larger, regional banks. Both have benefits and drawbacks.
