Choosing the right bank can have a significant impact on your business success.
It’s important to thoroughly evaluate your needs prior to making a decision on the bank that will be your partner. Things to consider include:
- How are your products/services paid for?
- Is close proximity to a bank a key issue?
- What types of checking and savings accounts will you need?
- Will your customers/vendors request a credit history from your bank?
- Will you need notary services?
- Will you have a need for Letters of Credit?
- Will you be transacting business outside of the U.S.?
- Does the bank have FDIC insurance and what are its limits?
- Will you need financing for working capital and/or equipment?
- What types of online banking services do they have?
- What are their hours?
Once you have narrowed your requirements check out bank web sites for details on the products and services that bank’s in your area provide. I would also encourage you to review the bank’s financial position through online searches and/or reporting agencies. Consider the banking institutions commitment to your community. A bank that is a good corporate citizen will be a good business partner.
Once you have a list of banks to interview ask your accountant, lawyer, industry association representative, and/or local SBA office to recommend a banker they have worked with. Then make an appointment to meet face-to-face at the bank.
It’s important to look for a banker who is not only knowledgeable but has a complementary personality. Ask lots of questions and listen carefully to the answers. Look for someone who will give you a straightforward response.
Choosing the right bank is a long-term business investment. Knowing that you have selected a banker with sound business judgment will help you sleep easier.
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