How to Select a New Financial Institution for Your Business
Selecting a financial institution can have a dramatic impact on your business. One that charges too many fees and doesn't excel at customer service can cost you money. It won't do much to help your business grow, and can actually cause setbacks for your venture. On the other hand, a good financial institution is key to helping your business grow, and its employees can give you expert advice to help you with your finances along the way.
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Instructions
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Take into account the services you need and prioritize them before you shop around. Write a list of typical business needs that apply, such as wire transfers, deposit frequency and links between primary and secondary accounts. Each business need relates to the type of account you will choose. For example, if you make many small deposits throughout the week, you will need a business bank account that doesn't charge you teller fees to handle each deposit.
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Verify all of the services offered as you compare financial institutions. It's a good idea to use the accounts and services of more than one financial institution. Select one company as your primary financial institution, where you do most of your business. However, open an account with a second financial institution that offers a financial product that will benefit your business. You'll have the opportunity to build relationships with two separate institutions, and if a need arises and one institution is unable or unwilling to help, you can try the other.
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Find a bank that requires very little or no minimum balance to avoid bank account fees. Shop around for an institution that will allow you to open a business bank account for $100 or less, with no future requirements for maintaining that balance or higher. Bank charges add up, and that's money that is better spent on marketing or inventory. Visit the websites of the banks in your area, to see what "deals" they offer to new business customers. Look for signs at each bank, announcing new customer specials. It's not common practice for banks to negotiate a lower fee for one customer over another, but you can take advantage of specials, or look for banks that offer low fees to all customers.
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Research the online banking and other capabilities of the financial institution. Compare online features, such as the ease to make transfers between bank accounts. Other online features to look for include paperless bank statements, wire transfers and stop payments. The best way to find out more about features is to call the bank you're interested in, because they may not post all of the information on the website. Your time as a business owner is better spent on delivering products or services, not waiting in line at a bank to complete routine transactions that you can do online.
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Gauge the willingness of business bankers to start and maintain a working relationship with you. As your business grows, you'll need more access to services and products, and the relationship you have with your banker plays a role. If employees seem inaccessible or unwilling to take the time to explain their products or services that can help you in business, then don't choose that financial institution. The only way to know is by asking lot of questions. If they're responsive and not irritated by your questions, then you'll know that customer service is a priority to them. The quality of the answers you get will help you determine whether they are capable of meeting your needs.
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Ask how many people are in the chain of command at the bank. If you prefer smaller banks and the opportunity to speak with those who run the bank, then large financial institutions are not for you. However, smaller banks are often limited in the range of services and capabilities they can offer.
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Verify that the customer service representatives that you're dealing with are experienced before selecting a financial institution. There's no guarantee that the same person you're impressed with will be there for a long time. Check to see that there are at least one or two others who are also experienced. You'll know that the company hires and trains their employees to handle small business issues well, and you won't suffer if the person you build a working relationship with moves on. Ask employees for concrete examples of how the products or services will benefit you as a small business owner. Repeating what's on the brochure or marketing material is not an acceptable level of experience. However, if the employee can give at least one solid example that's helpful to you, then the employee is experienced enough.
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References
- Photo Credit gold bank image by John Sfondilias from Fotolia.com
