5 POWERFUL TIPS ON HOW TO CHOOSE THE BEST BANK FOR YOUR SMALL BUSINESS

If your business is powered by cosmic juice, this is not for you. But if your small business runs on money, then knowing how to choose who keeps your money is important. Our guide on picking the right bank for your business is what you need to help you along.

At some point or the other in your business’ life, you’ll need the services of a bank. Whether it’s to save your money – not everything can go in that your hidden safe – or for a much-needed loan to expand your trade, a bank will one day come in handy.

Therefore, starting on time to pick the perfect bank for your small business needs is advised. We’ve created a list of a few things you might want to consider in the process.

1. DOES IT FIT YOUR BUSINESS?

Is your business tech-y? Are you mostly automated? Then it’ll be weird to ask customers to go to a bank to deposit money because your bank doesn’t offer online services.

You may find it much easier for you and your clients to use the services of the numerous online banks that are present.

2. LOCATION

If your primary need for a bank is to receive and send money, then an online bank will do. However, don’t jump into just ANY online service without doing your due diligence.

On the other hand, if you need to be physical with the bank – not that kind of physical – you might want to pick a community bank.

If you travel a lot or need access to ATMs in various parts of the country, you might want to go for a bigger bank with more branches nationwide.

2. CHARGES AND FEES

Ha! Most times, this is the deal-breaker. A bank can have all the bell and whistles but charge an exorbitant fee for their use.

Be sure to pick one whose fees and charges fit your business budget.

Don’t use their personal account charges to judge; often, banks charge differently when it comes to businesses.

Keep an eye out for perks too – Gift cards, discounts, etc. This shouldn’t be your top priority but can be a tie-breaker.

3. YOUR LOAN NEEDS

When it comes to getting loans from banks, big is not always better.

In March 2016, a survey observed that big banks approved 23% of funding requests, while small banks approved a whopping 48.7%. This may be because big banks can choose what business to give loans to – like a credit score buffet.

While small community banks are more flexible and will most likely understand you better. They also give that much needed human touch.

Don’t be scared to specify your loan needs or what loan rates you can go for. You may end up with a favorable compromise.

4. TRUST YOUR GUT, BUT BE OPEN.

Go along with whatever bank decision you feel is right. But, this should be after you’ve sought insights from the web and people who’ve banked with them.

Always be open to advice.

5. DON’T STOP SEARCHING

Always conduct a periodic revaluation of your bank’s policies and keep a lookout for better banks with super advancements in tech.

Don’t settle.

With this list, you now know what bank qualities to keep in mind for your small business.

Remember to keep your eyes and ears open for any government loans, grants, and reliefs that may benefit your business.

Don’t forget to reach us if you’ve got any questions. Good luck!