- Nick Burgess
10 Tips for Choosing the Right Small Business Banking Partner
How to Pick a Small Business Banking Partner
Starting a small business can be a daunting task, and one important aspect to consider is how you will handle your finances. Choosing the right small business banking options can make a big difference in the success of your business, and your future as a successful business owner. Here are some key points to consider when it comes to small business banking:
1. Determine your small business banking needs
Before you start shopping around for a bank, it's important to have a clear understanding of what you need from a bank. Do you need a checking account for daily transactions, a business credit card for expenses, a loan for startup capital, or all of the above? Understanding your needs will help you narrow down your options and choose a bank that can meet those needs.
2. Look for a bank with good customer service
As a small business owner, you will likely have questions and concerns about your finances. Look for a bank that has a reputation for good customer service and is willing to take the time to answer your questions and help you with any issues you may have.
3. Compare fees
Different banks charge different fees for their products and services. It's important to compare fees from different banks to ensure you are getting the best deal. Some common fees to consider include monthly maintenance fees, ATM fees, and overdraft fees.
4. Consider online banking options
In today's digital age, many small business owners prefer to do their banking online. Look for a bank that offers a user-friendly online banking platform and mobile app. This can make it easier for you to manage your finances on the go and save you time and hassle.
5. Look for a bank with good security measures
As a small business owner, it's important to protect your financial information. Look for a bank that has strong security measures in place, including encryption and secure login procedures.
6. Consider the location
While online banking makes it easier to manage your finances from anywhere, it can still be helpful to have a physical bank location nearby. Consider the location of the bank when choosing one for your small business.
7. Check out small community banks
Community banks are typically smaller and locally owned, which means they may be more attuned to the needs of small businesses in the area. These banks may also be more willing to work with you and offer more personalized service.
8. Consider credit unions
Credit unions are non-profit financial institutions that are owned and controlled by their members. They may offer lower fees and better rates on loans and other products compared to traditional banks.
9. Use a business credit card
A business credit card can be a useful tool for small business owners. It can help you keep track of business expenses and potentially earn rewards or cash back on your purchases. Just be sure to pay off your balance in full each month to avoid paying interest. For me, I personally love my American Express Blue Business Plus card that gives me 2x American Express points on every dollar spent, up to $50,000 per year. This lets my wife and I travel around the world, pretty much for free!
Related: Should You Get the American Express Platinum Card?
10. Explore alternative lending options
If you are having difficulty securing a loan from a traditional bank, you may want to consider alternative lending options such as online lenders or crowdfunding. These options can be a good fit for small businesses that may not meet the strict requirements of traditional banks.
In conclusion, choosing the right small business banking options can have a big impact on the success of your business. Take the time to research and compare different banks and credit unions to find one that meets your needs and offers good customer service, competitive fees, and strong security measures. Don't be afraid to explore alternative lending options if traditional banks don't work out. With the right banking partner, you can focus on growing your business and achieving your financial goals.