You’ve got a business idea in mind and you know you need a bank to start it, but which one should you choose? There are countless options to choose from, so how do you know which one will be the best fit? And what criteria should you look at when comparing your options? To help answer these questions, here are five of the most important factors to consider when choosing a bank for your small business.
Small business owners face challenges that their larger counterparts don’t have to worry about. The most important factor in choosing a bank is customer service: how fast can they access cash, what kind of loan options are available, what kind of checking account is offered, and are the employees friendly?
When it comes down to it, the more accessible your money and the easier you can manage it, the better off you’ll be. Banks like Pentagon Federal Credit Union and Northern Trust offer products that make managing your finances easier than ever before. They have mobile banking apps and online banking with plenty of great features!
Keep in mind that you’ll want your bank to give you top-notch customer service and easy access, but that doesn’t mean it needs to be convenient for other people. Think about who else will have access to your accounts. Make sure there are enough checks and ATM cards so employees can get money on their own and managers or partners can manage cash flow throughout the business day.
You are your own boss and that is what makes small businesses so rewarding. It can also be one of the biggest challenges, especially when it comes to running day-to-day operations. Thankfully, there are plenty of online banks with online banking solutions that can help make your life as a small business owner just a little bit easier. They offer everything from personal financial management services and international money transfers to electronic invoicing services and fraud protection services.
It is important to have easy access to your money when you need it. Banks often operate ATMs in addition to their branches. The first step should be finding an ATM near where you work or live so that you can take care of your day-to-day banking needs on the go. As an added bonus, this will also help keep cash from being stolen from break-ins at the office.
The second factor that should be considered is if your small business will have multiple bank accounts. For example, there may be an account specifically for paying employees, which also has payroll services through your bank.
If you will have more than one account at a time, it is important to note what transaction fees you may be charged if they use separate ATMs or bank branches. These fees can add up quickly and end up costing more than having your money all in one place.
Banks typically limit the number of free withdrawals per month based on how much money you are depositing into that particular account; always read all fine print before signing any agreement so you know exactly what these fees look like and when they occur.
Finding the right interest rate is crucial because it can end up saving you thousands of dollars over the course of your contract. If possible, try and stay away from variable-rate accounts as they have fluctuating interest rates that can cause you to pay more or less than what you expected.
With fixed-rate plans, you’ll know exactly how much money will be deducted from your account each month. In terms of choosing an appropriate balance, it all depends on how much money your business needs in order to function on a daily basis. Of course, having a large cushion is always advisable in case something goes wrong and your cash flow takes a hit.
Finally, it’s important to look at the mobile app as it will be your primary point of contact with the bank. If you need help or want access to customer service, these apps can answer any questions or provide solutions. We recommend considering an app that offers timely notifications and makes accessing features and finding products easy. Make sure the customer service center is easily accessible and there is 24/7 customer support.