We have outlined in a previous post the importance of having a good relationship with your bank. In order to form this relationship you must find a bank that is suited to your business. By choosing the best bank for your small business you can benefit from support and guidance.
But how do you choose the best bank?
1. Decide what you want
Depending on your business size and its age, you may require different banking services than other businesses. If you want to have personalized customer service then you may need to test the bank by calling them with questions relating to your business. If the response is fast and you get through to a knowledgeable representative then this may be the bank for your small business. Alternatively you may need a bank that specialises in small business loans. By clearly acknowledging which bank services you need most, you can make a better decision.
2. Comparisons
Once you have identified what services you require of a bank, your small business can then compare the banks offering those services. This may require you to ring around or even set up meetings with bankers to find the one most suited to your business. Larger banks can often have more favourable interest rates and more products and services on offer but smaller banks can be more compelling in promoting local business growth.
3. Bank Reputation
Consider looking into a bank’s reputation when choosing the right bank. You could ask other business owners to share their experiences with various banks which can help you in establishing the right bank for your business. It is important to note that although some banks are suited to some businesses, your business may require different services. Even if a business owner had a bad experience, it could be the best bank for you. This is important to take into consideration when hearing their experiences.
4. Fees
It is important when choosing the best bank that you look into their fee structures as often you can be surprised with hidden fees. Ensure when looking into different banks that you have a close look at their fees such as fees on ATM usage or getting monthly account statements. Don’t just take note of regular fees, consider fees that may relate to other activities you may wish to do such as wire transfers. This will influence your choice of bank because you may not have funds available to cover these fees if you have a small business.
Once you have decided on the best bank you should focus on building a relationship with them. Our guide on bank relationships can provide you with the tools necessary to build this relationship.
