Choosing the Right Banking Partner

For a small business owner, establishing the right banking relationship will take the worry out of business and make your financial picture brighter!  When you start to look for a banker or a banking institution to support you and your small business, there are a number of things you should think about.

As you consider your business plan and the growth and changes you anticipate for your business, think about whether the bank you have chosen can support your needs.  Do business accounts at your bank have minimum balance requirements?  What penalties will you pay on if you do not maintain the minimum bank balance every month?

Can you use online banking services through your business account to pay your bills, check your balances, transfer money and make other miscellaneous transactions?  Can you schedule regular monthly or quarterly  payments to your suppliers and vendors accounts to save time and be sure you don’t forget to pay a bill if you are away on business?

Can you perform electronic downloads of statements and bank directly into your business bookkeeping software to avoid errors you might make if you have to enter the data again? 

Does your bank have a list of locations and branches online so you can find a banking branch when you are in another city?  Does your bank have a lot of ATMs available in various cities?  How much do you have to pay for deposits or withdrawals from other bank ATMs?  Are these locations convenient for you and your business and employees?

Do you have a personal account manager to help you with business decisions and support you as your business changes and grows?  Can you get business loans quickly and easily through your banking institution?  What are the loan rates?  Will your banker or account manager help compose the loan package to ensure that your loan will be approved?

Can you get a line a pre-approved line of credit for your business so you have money available in case you need it? 

Can you get Accounts Receivables financing through your bank, to buy inventory at favorable advance rates, and still stay in the black until your customers pay their bills?

Does your bank offer investment accounts, and checking and savings accounts and a full suite of business banking services to fit your business needs? 

Do you plan to do business internationally?  If so, find out if your bank has international branches, and whether that bank can take care of things like international letters of credit and/or import and export business. 

What are the unique services and options available to your business from this bank?  Sit down and talk to a bank officer and find out if the relationship and the fit is right for you and your business. 

Talk to several banks before you make a decision and then compare one bank to another to find the best fit.  Remember, you are in this for the long haul and you want to work with a banker who truly supports your business vision and can offer you competitive services.