finance articles businesses business management business marketing Technologies finance accounting Industrial Manufacturing starting a small business Investment health information

Finding a bank for your small business

finances19159348.jpgOne of the first things you must do when you establish a small business is to set up a business bank account. Depending upon your industry and personal credit rating, you may have a difficult time finding a good bank that will work with you. Finding a bank doesn't need to be a hard thing, especially since there are so many to choose from. You don't even need to use a bank as many businesses have found that credit unions are a better option.

Look for a bank that offers urgent funds - This is important to small businesses because you never know when you essential equipment or machinery will break down. You need a bank that is willing to give you the money as soon as possible in order to ensure that your business will survive.

Credit cards - To establish business credit, you will need to acquire business credit cards. Does the bank offer business credit cards or will you need to look at other lenders? Having a business credit card with your existing bank is a great option because they can set up automatic payments for the credit card so you don't have to worry about missing a payment. Are you setting up a credit card method with the bank for your customers? When you choose to accept credit cards, you will be charged a fee for the cards. Check with the various banks to find out what their fee is on the credit card transactions so you can evaluate which cards to accept and which bank to choose.

Online banking - Just about every bank has online banking anymore. Online banking helps you to manage your books easier as you can go in daily to make sure they balance out. Always look for a bank that also includes online deposits and transfers as well. Scheduling the payments to your vendors can save you from late payments. It is also nice to have automatic transfer for your employees pay as well. Just make sure the transfer will be scheduled well in advance so they are paid in a timely manner and never late.

Experience - Some people choose a bank based on the number of years they have been in business. While this is a great way to know that they have a nice track record, it doesn't always mean you will be safe with the bank. Some banks overextended their mortgages and lines of credit and they have failed. Many of these banks have been around for hundreds of years. You must choose wisely when seeking a business bank and opt for one that meets your needs instead of basing the decision on age.

Interest - What is the interest rate like for your business bank account? This is a big thing to consider when you are choosing a bank. Some banks will charge large interest rates and it makes it difficult for you to afford to keep the bank account. Look for one that provides a fair interest rate on the credit card and also offers a nice APR for your savings account. Since banks and credit unions are very competitive against one another, look for a bank that has a low or 0 percent interest rate for new businesses for at least 1-2 years. This way you don't have to worry about another payment when you are just getting your small business up and running.

Meet with the bank manager and develop a relationship. You need to feel comfortable with the bank you have chosen and this will happen by having actual interactions with the bank and working with them.

FREE: Get More Leads!
How To Get More LeadsSubscribe to our free newsletter and get our "How To Get More Leads" course free via email. Just enter your first name and email address below to subscribe.
First Name *
Email *

Get More Business Info
Sponsored Links
Recent Articles


Copyright 2003-2020 by - All Rights Reserved
Privacy Policy, Terms of Use