Banking Consideration for Your Small Business

21 January 2020
 Categories: Finance & Money, Blog

Opening your own business is exciting, and you don't want to overlook any important details. One mistake new business owners make is not researching their banking options. The bank that works well for your personal needs may not be well equipped to handle the evolving needs of your new business. Before opening an account, make sure the bank you choose offers all the services your new business may need.

Low Fee Account Services

One thing to verify is that the bank has accounts tailored to the needs of small but growing businesses, not just larger corporations or small cottage industries. Fees should be competitive or lower with other banks in the area. Even better, you should have options to avoid many of the fees, such as by combining products or by maintaining a minimum balance. Also, check fees on ancillary services, such as checks, loan origination, and payroll services, to make sure they are within your budget.

Realistic Hours

Some banks still close at the stroke of 5 pm and offer no weekend hours. Unfortunately, as a business owner those are often the hours you can't get away to talk to a banker. Choose a bank with hours convenient for you. Later weekday hours and weekend hours are a good start, but access to a 24-hour online banking and extended hour telephone tellers can make it much easier to deal with finance concerns as they arise.

Credit Card Service

All modern businesses need to be able to process credit and debit cards, as everything is quickly moving toward a cashless society. As a merchant, you can expect to pay a small fee on each transaction, and you may also need to rent the processing machines from your bank. Look for low fees and free or low-cost equipment rentals. Keep in mind that fees are often set based on your gross sales, so make sure they won't go up to high as your business becomes more successful.

Ancillary Services

As a business owner there are a whole slew of financial services you may need, and it's much easier for you if they are offered through the same institution. Payroll services may be one of the more important ones, but services like small business loans, lines of credit, and benefit account management are also things to consider. You may not need all of these services right when you open, but one of the keys to choosing the right bank is to make sure they can grow with your evolving needs.

Contact a business account banking service for more help.