"How to Choose a
Bank That is Right For You and Your Business"
Your success in getting a
Bank to support a request for finance you may need does depend upon you
choosing the right Bank in the first place. Even if you don’t initially
intend to borrow any money, you should keep this possibility in mind when
you are researching the market for the right Bank.
With competition increasing
you can get some good deals if you are prepared to shop around. Also, don’t
pass over the Banks which offer only telephone or Internet Banking for small
businesses. If you operate a very small and simple business then an Internet
only Bank account may be right for you.
So where should you look and
what criteria should you use when searching for a Bank for your small
business?
Your Existing Bank
If the Bank where you have
your personal account offers business banking facilities then this may be a
good place to start. You already know their level of service (good or bad!),
the layout of the branch and perhaps some of the staff if you are lucky!
This can make the whole process of opening a new account much easier.
But don’t open your business
account at the same Bank just because it will be less hassle. You must still
ensure that the services which go with the business account are what you are
looking for and at the right cost.
A New Bank
Even if you have a good
relationship with the Bank that has your personal account, don’t discount
the opportunity of looking around. One reason to consider opening your
business account at a different Bank is that of total separation between the
two aspects of your life – your business and personal life.
Consider whether you want one
institution to have complete control of your business and personal finances.
If you do go through a sticky patch in the business, would you feel
comfortable with the Bank seeing what you have sitting on your savings
account?
Location
If you have no preference for
a particular Bank then location of your Branch may be more of a priority,
especially if you will be paying in a lot of cash where a bank just around
the corner would be very useful.
Some businesses have very
simple needs when it comes to banking. If you don’t handle cash or large
volumes of cheques and are happy banking over the telephone or Internet then
location is obviously less of an issue! But be mindful that the lack of a
‘real person’ to talk to could be a frustration when you have a major
problem to sort out.
Go Hunting
If you have no particular
Bank in mind, or you are only interested in getting the very best deal,
visit as many as you can so you can make an informed choice. Ask to speak to
the Manager and tell them you are interested in opening a Business account
and that you are looking for information.
The good ones will spend time
with you, offer you brochures, talk you through the process and the leaflets
and tell you about their range of services. How you are treated at this
early stage will give you a good idea of how you are likely to be treated
later on.
Now is the chance for you to
get to know about what services and benefits they can offer your business.
Ask questions such as,
Could You Do Business With
Them?
Once you have done all your
research take some time to assess all the information you have gathered.
Which Bank offered you the best deal? Which Bank is the most convenient?
Which Bank offered the services or products most suitable to your
circumstances?
I have not mentioned probably
the most important aspect for many business people – the person who is going
to be looking after you; your point of contact to sort out the things that
will go wrong! Ask yourself whether you could get along with him or her. A
good relationship with your Banker is vitally important.
And Your Decision Is?
So, based on all your
findings, which Bank stands out head and shoulders above the rest? Which one
did you feel most comfortable with? Make an informed decision based on all
the information you have gathered and then move on to the next stage which
is actually opening your account.
© Robert Warlow
Small Business Success
More information on dealing
with banks can be obtained from Rob’s latest e-book ‘The Secrets of Getting
Your Bank Manager to Say Yes!’ at
http://www.smallbusinessloansecrets.com
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