How To Pick A Bank For Your Business

Choosing a bank for personal savings is challenging, and finding one that satisfies your business needs is even more stressful. So, where do you begin and forage through the several options available?

Every bank has its specific financial services and products to offer its customers. Perks, lending options, and fees also differ widely.

Below are some of the things you need to look into when searching for a bank that’ll satisfy your business needs.

What to Consider When Choosing a Bank for Your Business

1. Check the Credit

Bigger banks can choose the business they wish to work with. This means getting to a large bank can be difficult if you have a new business or one with a very low credit score.

Small banks are more lenient to local businesses, with the credit requirements for these banks being less stringent for lines of credit and opening new accounts.

Confirm the credit demands for the bank you’re eyeing to find out if you’ll get what you require that matches your business accounts.

2. Banking and ATM Access

It’s more reassuring to open a business checking account at a bank with physical branches since you’ll be able to get personalised assistance with account management.

If you make cash or check deposits daily, you may need the convenience of a physical branch.

Additionally, it’s also convenient to use an ATM to withdraw money and manage your bank account.

Even though online banking can offer this service, it’s essential to check the bank’s ATM network size. If not, you may run into costly ATM surcharges if you use a machine from another bank.

While looking into the bank’s fee schedule, check the ATM fees the bank charges for business checking. You should also confirm if the bank refunds out-of-network ATM charges.

3. Transaction Limits

A business checking account allows you to make frequent withdrawals, deposits, electronic transfers from one account to another, even to another bank, and bill payments.

When comparing different business checking accounts, you should determine each bank’s limits on various transactions.

For example, the bank can limit you to writing a particular number of checks monthly. For the electronic transfer of funds, there may be restrictions on the amount of cash you can move in one transaction.

Furthermore, banks can also limit the number of transactions posted to your bank account in one day. They can also restrict the number of times you can make a transaction—there are extra fees for excess transactions.

Click here to know how you can change banks for your business, especially when customers need to make their payments.

4. Consider the Support You’ll Need

Some banks have support staff who can assist you in growing and managing your business. Specialists like these can be of great value as you expand your business.

They offer services like advising on how to fund growth, run your accounts and grow your business. They can also assist you with payroll or tax issues.

When selecting your account, ask yourself: “As my business grows and changes, how much money does it need in the present and future.”

You can consult with an external specialist. However, an internal specialist is already well acquainted with you, your finances and your business.

If this resource (from the external specialist) is something your business requires as it grows, consider its availability when selecting a bank.

5. The Size of the Bank Will Matter

In matters of banking, size is a pertinent issue. This doesn’t mean that bigger is always better. To determine whether to work with a small or big bank, you’ll have to gauge your comfort level and business needs.

Big national banks come with a variety of resources and offerings. They also have a lot of branches. This means that you will have access to a wide array of credit options and incentives for opening lines of credit or accounts.

However, the advantage of smaller community banks is that they are likely to be more familiar with the situation on the ground and can offer you a line of credit or loan based on your overall profile and character instead of relying on credit score.

Small banks may be inclined to give you a better rate or a lower fee to win your business.

6. Ease of Integration

Do you use accounting software programs to manage your business finances? If that’s the case, integrating these programs with your checking account is simple.

When weighing business checking accounts, look into the bank’s capabilities to link your accounts with your accounting program.

You should consider other integration software such as tax preparation and online payroll software.

Linking your business checking account with external services make it simpler to make the financial aspect of your business smooth-running.

7. Service Fees

Business checking accounts attract various fees. Some of the actual charges include:

  • ATM charges and surcharges
  • Monthly servicing charges
  • Overdraft charges
  • Wire transfer charges
  • Minimum balance charges

Online banks charge less than credit unions or brick-and-mortar banks. However, consider what this means in regards to your money.

Choose the Right Bank for Your Business

If you have a business, you need banking services as well. Contemplate what your business needs and what each bank can provide.

Keep in mind that the bank you select is not permanent. If you are not happy or if you’ve outgrown your bank, you can always change it.

Having a great relationship with your bank is essential for the smooth running of your business.

John Otero

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.