Is your bank satisfactory to you? Do you believe that the services you receive are worth the fees you pay? Do you think that your bank is a supporter of your business?
Continue reading if any of these questions elicit a “no” or “maybe” response. Whether you have a personal or business account with a bank, size matters when making this important personal and business decision.
When making decisions, one must take into account the anticipated requirements of the individual or the company. Over the past few decades, banks have become more expensive and more competitive,
and you owe it to yourself to satisfy your requirements in return for the privilege of allowing the bank to hold your money and collect the fees you pay for that convenience.
You will want to buy or refinance a home, make upgrades and repairs to your home, or pay for your child’s education in your personal life. You might need to finance equipment or technology upgrades as a business owner or consultant for solopreneurs.
You might have plans for growth and expansion that will require financing from outside sources. Regardless of your financial plans, a helpful banker will help you get capital and give you important advice so you can achieve your goals and meet your obligations.
How should sole proprietors and owners of businesses select a bank? Start by visiting two local, two regional, and two major national banks. This is a good place to start. Walk in and make a request to speak with the business banker, who typically serves as the commercial loan officer.
Make an appointment if you need to talk so you have time to do so. Inform this individual about your company, plans you have in the works, and anticipated banking services and/or financial requirements. What ways can the bank support and enhance your plans? What advice and insights does the banker provide you with?
If credit for businesses is important, ask these three questions:
How much of the credit line can be personally approved by the business banker?
Is the bank able to independently approve and underwrite SBA loans, is it a Preferred SBA Lender, and does it offer SBA loans?
How many SBA loan applications are approved and how much business is done?
Consider the general guidelines below as you reconsider your business’s banking requirements. If you accept debit and credit cards, don’t forget to inquire about merchant credit card processing fees for in-person, online, and mobile transactions.
Community banks are best for solopreneurs and small to medium-sized businesses. The fees may be higher than those of larger banks. The technology for online or mobile banking may be slow or not complete. This is standard banking. Customers are looked after. You are known by the managers and tellers.
Locally, loan decisions are made. The loan officer is familiar with you and your company. They want to assist. It will matter how you act.
Online and mobile banking technology will meet expectations, the basics will be available, service will typically be good, and regional banks are capable of providing personalized service. Loan decisions will be made with an eye to the local economy, as well as what your financial statements indicate about your ability to repay.
National banks are appropriate for medium to large businesses that conduct out-of-state and/or international business. Fees are typically the lowest available, the result of economies of scale. Online and mobile banking technology will be the most cutting-edge available, and banking can be For a long time, no one knows you. Branch-level decisions are not made locally.
The manager won’t be able to give you the benefit of the doubt because loans are only given out based on the numbers.
I appreciate you reading.
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