finding a bank for businessOne factor a lot of small businesses fail to give enough thought to when starting out is choosing the right bank to suit their business. Getting the correct bank to handle your business accounts can be invaluable in the long term future of your company, helping you in all kinds of ways, from the ease of getting a business loan or overdraft to how they handle payments from your customers to their proximity to your actual place of business. Look at a number of factors relevant to your business before deciding. Will you need payment processing and online banking? Will you need to make a great many international wire transfers? Are you going to need an overdraft? Most banks these days can handle most of these things, so once you have established that they do them, the next thing to do is look at the overall feel of the bank, and how important your business is to them. Do you think that the bank will see you as a valued customer, or just another line on a balance sheet? The following points are worth bearing in mind when you make your decision: 

Try and Go Local

Now that all banks can handle most aspects of international commerce, if you can find yourself a small and friendly local bank then you should try and do so. There are a number of reasons for this. When it comes to mortgages for example, local banks tend to care a great deal more about getting to know the local businesses in their area. They are aware of who operates in their high street and will know who is reliable, friendly and trustworthy, and which businesses are deserving of help. There is a good chance that if you are a local business they will be more willing to be flexible in the terms of loans that they give you and that they will recognize the importance of your business’s role in the community, and how the community would suffer if your business went under. Local banks tend to be much more competitive on rates of interest and services and they are almost always better at customer service, building relationships with their customers. Additionally, they will normally be involved in the community, holding networking events and sponsoring local charities.

Visit the Bank 

Once you have found a bank you like, it is time to go and visit it in person, to get a feel for the place. Don’t base your decision solely on internet research. Just because a forum tells you they offer the best rates or the nicest staff, doesn’t mean you shouldn’t try them out first before you commit. Go to several banks in your area and ask to talk to their business managers. See how much they want your business and how much time they are willing to devote to you. See if they ask you about what you would be looking for when it comes to business banking. Look out for small things too – see if customers in the bank are interacting with the bank tellers, and whether the atmosphere is friendly. Pop back in a few days time and see if the business manager remembers you.

Loyalty Works Both Ways 

If you find a good local bank then stick with them, don’t chop and change to the bigger banks at the first lower rate loan or higher rate of interest on savings accounts. If you’ve got a bank who appreciates the needs of your business and who has been there for you, and who you have a personal relationship then they are more likely to go the extra mile for you if your business needs some help. That is invaluable and worth sticking with.

 

Alex is a personal finance blogger and writer. He blogs regularly about running a small business and covers everything from small business loans to where to find a good contractor tax calculator.

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