Launching your own business is an overwhelming task from the get-go and you no doubt want to make sure every piece of the puzzle is as perfect as can be. That feeling doesn’t stop when it comes to choosing a bank for your small business. In fact, that decision can feel like the scariest one of all (apart from choosing a company name!)
When looking for a bank for your small business; you want to make sure you are looking for an institution that strives to be a partner to your company and not just another bank. As a small company owner, you need personalized service and a bank that really knows what is best for you and your business.
Before officially selecting the best bank to open a business account, make an appointment with the business banker to talk through your priorities. Ask them about these five things.
1. Small business lending capacity
There is a good chance that at some point in the development of your small business, you are going to need (or want) to take out a small business loan. When looking for a bank, make sure to check out their offerings for small business loans.
- Do they just have medium-term loans and lines of credit? Or do they have a broader array of options including short-term loans, SBA loans, and equipment financing?
- Are they known for their more traditional route when it comes to small business loans in terms of their term loans and lines of credit? Or do they have a wide variety of loan products available that are sure to meet your financing needs as they arise?
2. Inexpensive checking accounts
Depending on what industry your small business is in, your requirements when it comes to a business checking account will differ. However, no small business owner wants an expensive checking account, especially when there are so many no-fee options available.
That being said, many banks who have monthly checking account fees actually have criteria that are very easy to waive. Whether it is maintaining a precise balance, making a minimum number of purchases a month, or meeting a determined threshold between accounts, don’t merely turn away from a bank without investigating the terms and conditions of their checking accounts.
3. Business credit cards
When it comes to business credit cards, you want to make sure you are earning substantial cashback and bonus points on your business’s purchases. If you are already thinking about opening a business account, then it may be a seamless process to later apply for a business credit card.
4. Number of monthly transactions & cash deposits
Every bank has a different quota for transactions, but at the very least you should know they exist. Some banks offer unlimited monthly transactions, while others charge for every Dirham deposited after a certain amount.
You know which bank for your small business and how flexible you need these aspects of your banking to be, but it is still an important factor to consider when choosing a bank.
5. Extra features and add-ons
In addition to everything mentioned above, you also want to make sure you look for the extra features and add-ons that certain banks offer their small business clients.
You could potentially take advantage of their full-service payroll solutions, employee benefits, human resources and tax programs. They might have options to protect your business, assets, and employees with their insurance coverage. Some banks offer a variety of merchant services and new payment technologies in order to run your business as efficiently as possible, while most enable you to manage your account online with online banking. Whatever the perks are, you won’t know about them until you ask!
As a small business owner, it is crucial that from day one you begin to cultivate a relationship with your preferred bank — just think some banks even offer “relationship-based” loan rates! Within your chosen bank, find a banker who understands you and the direction you plan to take your business in. Ideally, you want someone who you can trust with your ideas and someone who can listen to those dreams and help you turn them into a viable plan.