How to choose the right Bank for your Business

One of the first things you need to decide on as a business owner is what bank you plan to use. It’s usually a long term decisions and once you make it you’ll get stuck with it for at least some time. Also you should try to find a bank that will accommodate all of your needs so that you don’t need to switch banks for different tasks.

This isn’t always an easy process to complete, and you should take some time to research and compare different banks in order to make sure you have what you need.

Know your needs

Before you’re able to choose the bank in the first place, you need to know what you’re looking for in a bank. That’s sometimes as easy as making a list of features and making sure your bank provides all of them.

On the other hand, you may not always know what kind of features your business will need in the years to come. It’s always best to plan and shop for the business you’re going to have and not just the business you have at the moment.

These are the four most basic services you’re going to need as a small business owner:

Business checking with interest

The most basic service you need as a business is a checking account that can earn interest over time. This means that you’re rewarded for using your checking account responsibly and keeping it in the black. At the end of the month if you have some money on the account, you get the interest on that amount.

These accounts are usually made for mobile banking access. This means that you can make your whole business mobile friendly from the perspective of both the customer and the business operations.

Treasury management

Treasury management means that a bank that you choose manages all of your finances at once. Putting all of your financial tasks under one roof makes it easier for the owner to keep track of the financial dealings and it ends up being less expensive overall.

The most common financial transactions to unify are: lockbox remittance, credit cards, remote deposits and even credit card merchant services. This is pretty much all that it’s needed for a small company to run at least when it comes to the financial side of things.

Business credit card

A business needs to borrow money to maintain its needs and its expenses. This is something to avoid whenever it’s possible and it’s best to stick to the funds you actually have available at the moment, however, having a good credit score is often the only way to run a business. A credit card made for businesses is thus the 3rd bank service you’ll need to look for.

It’s essential that you treat this service with care and with seriousness and to pay your obligations in time since that’s the only way to borrow more in the future.

Money Market Accounts

A money market account is the last service a business needs to have, others are optional. These accounts are used to invest the money you have put aside. That way you get the money to work for you, instead of the other way around.

What makes this account different than other accounts which allow you to invest your savings is that you can also use it to make payments. This means that you get to use the funds you have saved and the funds that you earn both as a hedge but as an immediate source of funds.

Customer services

Once you have all the service you need you should dive into exploring how your new bank treats its customers. This is essential for a business since a lot of the time speed and competency can mean a lot of lost or saved money for a company and you want to make sure that your bank has both.

A big part of this is the way the bank uses technology. You should expect your bank to allow you to do all that you need with a mobile app or with a phone call and to keep your data safe as well.

Conclusion

A bank is one of the most important partners you’ll have as a business owner. Choosing the right bank with all the services that you need is therefore essential. Make sure you check out a few banks before you decide on any particular one.

The bank needs to have a few basic services available. These are the ones that every business needs and the ones that you must have in order to run the finances of a small companies. Other than that, you want a bank that will be easy to communicate and work with.