Your success in getting the bank to support a request for finance depends on you choosing the right bank in the first place. Even if you do not intend to borrow any money initially, you should keep this possibility in mind when you are researching the market for Right Bank.
By increasing competition, you can get some good deals if you are ready to shop. Also, do not pass over those banks that only provide telephone or internet banking for small businesses. If you run a very small and simple business then an internet-only bank account may be right for you.
So where should you see and what standards should you apply when seeking a bank for your small business?
But first I want to inform you that if you want to know any banks details for your business then you can get it from the usaa routing number.
Your Current Bank
If the bank where you have a personal account provides business banking facilities then this can be a good place to start. You already know their level of service (good or bad!), The layout of the branch and perhaps some employees if you are lucky! This can make the whole process of opening a new account very easy.
But do not open your business account in the same bank, as it will reduce the hassle. You still have to make sure that the services that go with the business account are what you are looking for and at the right price.
A New Bank
Even if you have a good relationship with your bank in which you have a personal account, do not give the opportunity to look around you. One reason to consider opening your business account in a different bank is the total separation between two aspects of your life – your business and personal life.
Consider whether you want an institution to have complete control over your business and personal finances. If you go through a sticky patch in business, would you feel comfortable with the bank to see what you put in your savings account?
If you do not have a preference for a particular bank, the location of your branch may be higher than the priority, especially if you are paying in too much cash where a bank around the corner would be very useful.
Some businesses have very simple requirements when it comes to banking. If you do not handle large versions of cash or checks and are happy over the telephone or the Internet then location is definitely not less of a problem! But keep in mind that the lack of a ‘real person to talk to can be a frustration when you have a big problem to solve.
If you do not have a particular bank, or you are only interested in getting a very good deal, make as many trips as possible so that you can make an informed choice. Ask to speak to the manager and tell them that you are interested in opening a business account and that you are looking for information.
Good people will spend time with you, provide you with brochures, talk to you through the process and leaflets and tell you about their services. How you are treated at this early stage will give you an idea of how you are likely to be treated later.
Now is your chance to find out what services and benefits they can offer to your business. Ask questions like
- Do they provide on-line banking or telephone banking?
- Will you have a designated point of contact? Or would you be put through a dangerous call centre?
- At what time will you be capable to implement acquiring facilities and what are the standard terms?
- Do they provide help and support?
- What are the charges for operating an account?
- If you decide to open an account with them, what information such as ID or application form will you need to open an account?
- Do they offer initial incentives like 12 to 18 months of free banking?
Can you do business with them?
Once you have done all your research, it takes some time to assess all the information you have collected. Which bank offered you the best deal? Which bank is the most convenient? Which bank offered services or products suitable for your circumstances?
I have not mentioned perhaps the most important aspect for many businessmen – the person who is going to take care of you; Your point of contact to solve things that will go wrong! Ask yourself if you can meet him or her. A good relationship with your banker is vitally important.
And your decision?
So, based on all your findings, which bank stands head and shoulders above the balance? With whom did you feel most comfortable? Make an informed decision based on all the information you have collected and then move on to the next step which is actually opening your account.