Here's how to choose a bank for your business

April 30, 2018 8:50 PM

Find out about everything you need to know about the banks of your choice from other business owners by asking them what is their experience like with bank they use.

If you are quite confused on how to pick a bank for your business, here are six infallible guide to help you.

But first, it is important to know that the bank you choose for your business has a big impact on your daily operations;not just an impact...but a very big impact.

Therefore, a wrong decision will give room to negativity, while choosing will impact your business positively.

This is why your business should be on the lookout for a supportive and reliable bank from the onset. So, whether your needs are simple or complex, finding the bank that fits your business' needs is crucial.

Here is how to choose a bank for your business

1. Know what you want

You need to have a clear idea of what your business needs from a bank. Don’t you want a loan for your small business? Wouldn't you want investment advice? What about other services that banks offer?

Highlight what your wants because it is what will guide your choice. However, if personalized customer service is high on your list, for example, don’t hesitate to put a bank to the test.

Call and ask questions related to your business. How long does it take to get through to a knowledgeable representative? Send an email requesting information or use the contact form on their website.

Do you get a response within 24 hours? It’s best to know ahead of time if a bank demonstrates a genuine commitment to prompt responses and customer support.

2. Loan Inquiry

Small businesses often need loan to grow; which goes to say your business will need a loan sooner or later. So as you make plans to settle for one, limit your options to banks with a history of lending to small businesses.

3. Compare small and big banks

Bigger banks do offer a wider selection of products and favourable interest rates, but smaller bank often have a more suitable interest in promoting the growth of small scale business.

However, it is important to note that smaller banks are more likely to grant loans when needed most.

4. Consider bank's reputation

Do not underestimate the usefulness of their feedback as it will help guide you in the right direction.

5. Know fee structures

Do not be deceived; nothing is free. Anything that has to do with the banking system comes at a price. Go get a conversation with a bank representative and find out the cost of ATM usage, check writing, monthly account statement, and cost of interbank transfer e.t.c

6. Compare features

Of course, you know what you are looking for; now compare what the different banks can offer a small business with regard to your wants (Scale and weigh).

Also, list out various questions to enable you get accurate feedback when going for a scheduled meeting with a bank representative.

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In conclusion, always remember that a good bank can actually be a reliable partner for small businesses.