Choosing a Financial Institution for Your Business


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These tips will help you make an informed decision

Choosing the right financial institution for your small business can be a multistep process; you want to make sure that you have all the right information before deciding who will handle your money. Fortunately, many financial experts offer great tips for making a decision:

According to SmallBusinessNotes.com, “Many business owners don’t thoroughly consider their needs when selecting a financial institution. Although there are laws and regulations that govern the activities of banks, savings and loans, credit unions and investment firms, not all financial institutions are the same.” Each institution can differ in the following areas:

  • Types of products and services offered
  • Criteria for qualifying for a loan
  • Minimum balances for accounts
  • Interest rates
  • Charges for account services

When evaluating a potential financial institution, you first need to analyze your business. Do you need features like lockbox services and sweep accounts? Are you looking for an institution that offers investment products with varying risks? Is it important that you work with an institution that specializes in special loan programs for small businesses, including SBA loan programs?

Daphne Mallory, Esq., also has some useful advice for business owners looking for a financial institution:

  • Research online banking and compare features. How easy would it be to make transfers between accounts? Also look for features like paperless statements, wire transfers and stop payments. As Mallory states, “Your time as a business owner is better spent on delivering products or services, not waiting in line…to complete routine transactions that you can do online.”
  • Ask several questions and gauge the willingness of the financial institution to have a working relationship with you. Your business will grow and you might need more products and services down the road, so you want to make sure that the representatives you’re working with will be there for you every step of the way.
  • Ask how many people are in the chain of command; the answer will help you determine how easy it is to speak to the individuals in charge if necessary.

As you choose a financial institution for your small business, be sure to keep us in mind. If we can help you with your decision by explaining our services and how they fit your needs, don’t hesitate to call.

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