How To Choose a Bank for Your Small Business

In order to give your small business the best chance of being successful, it's critical that you choose the right bank for your small business. Banks don't offer all of the same products and services, so be sure to read through these tips before you choose a bank for your small business.

Step 1

Look for a bank with low service fees. You are going to need a checking account for your small business. Look for a bank that offers low (or no) monthly service fees. An ideal bank for you small business also offers a variety of business checking accounts that you can choose from. Don't compromise your checking account needs as a small business owner. Look for a bank that can meet your needs at a low cost.  (And don't be afraid to ask for discounts on service fees. Many banks will consider this if you have several accounts with them.)

Step 2

Find a bank with great lending options. When you are choosing a bank for your small business, you also need to consider what loan options are available to you. Choose a bank that has several loan officers that are willing to work with you to negotiate a loan or a line of credit with you. This is a must. If a bank can't or won't lend you money, then you need to choose another bank for your small business. You may want to talk to a loan officer about securing a loan before choosing a bank. Find the bank that offers the best terms and interest rates for loans.

Step 3

Get technical. Save yourself a lot of time and find a bank that offers complete access to all of your accounts online. Sure, you are going to have to visit the local bank branch from time to time. But more often, you should be doing your small business banking online. And don't pay a cent for these online services! Shop around if a bank wants to charge you for online banking.

Step 4

Look for banks with lots of online options. Once you've found a bank that offers free online banking, look into what other services are available online. Often, banks will also offer free invoicing to your clients online. And you will likely be able to do some payroll online as well. The more that you can automate or do through your online banking services, the easier banking will be for your small business. (As always, consider any fees associated with these more complex online banking services.)

Step 5

Find a bank with a personal touch. You may just be another customer to most banks, but your small business means everything to you. That's why it's important to find a bank that has people who are specifically assigned to work with small business owners like you. Large and small banks will likely have people who are knowledgeable in the small business field. But look specifically for someone who you can form a relationship with and whom you trust with all of your small business banking. Banks that offer a personal touch are the banks you want to choose for your small business.


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