Choosing a Bank

Choosing a bank can be a daunting task, particularly in today’s economy. Banks are all too willing to hold money in accounts but aren’t quite as giving when it comes to loans, perks, and free services. In fact, many are starting to charge fees for services that have traditionally been considered part of the banking institution. Banking, especially for small business should also be based on relationships that develop between the banking employees and management team and the business owner.

Additionally, there are some other traits and services that should be part of the small business banking package and if they are not, they should either be negotiated into the account or another bank considered.

Online Banking

Online banking is not simply a perk, it is a necessity. Gone are the days of rushing to get the mail opened and a deposit ready in time to dash off to the bank to get it deposited. Today, companies, no matter how large or small, can choose online banking options that include scanning checks directly into their account, accepting wire deposits, paying bills online, having payroll direct deposited into employee accounts and many more banking features. Some online services also offer the ability to create invoices from within the bank’s online program and customize them to show the company logo and other company information. One thing that should be noted, the bank that is going to be work with the small business should not charge fees for providing online banking services. However, some aspects of online banking may incur a charge with some banking institutions, such as scanning checks into a check capture program. This is an important question to ask when researching banks.

Type of Bank

Many people think that all banks handle small business accounts; however, that is not completely true. Some banks, particularly the larger ones, are more adept and willing to work with small business accounts than other banks. Local, hometown banks sometimes are not capable of providing the services that a small business needs for its accounting purposes. There are some large banks that advertise that they work specifically well with certain industries. It is up to the business owner to determine up front if the bank is capable of working with their business.

Fees

In a perfect world, there would be no fees involved with banking; however, this is not a perfect world and unfortunately, banks do have fees. The good news is that business accounts have the power to negotiate some of those fees. Banks don’t want to lose business; they make money when they have funds deposited. Business owners must go over their bank options carefully and determine what fees are being charged and whether or not those fees can be eliminated by the bank. Many banks will waive their fees if a minimum amount of money is kept in the account. Other banks will waive fees if the bank is in charge of processing credit cards for the business. Shop around and make sure that any fees being charged are normal and comparable with other banks.

Credit Cards

Some banks offer business accounts credit card processing as part of a business package while others charge extra for the service. This is something that should be examined closely when looking into accounts for the small business. The processing fee for the credit card should be part of what is researched as each bank has their own set fee. In some cases it might be financially advantageous for the company to do credit card processing through a private company and pay less fees. Another credit card perk that is often associated with small business accounts is a company credit card.

This is a credit card that should have an accompanying lower interest rate than traditional credit cards because it is associated with the business account. The best banks for small business accounts are those banks that offer the necessary services and perks that a small business needs to succeed without charging excessive fees and interest rates. The small business owner should shop around to find the bank that best meets these needs as this is not always the same bank that handles their personal banking. If the bank has the services that are desired but has fees that are not wanted, the business owner should try to negotiate those fees down to a manageable and fair number.