Don’t open a business bank account with just any bank!
Selecting a business bank account to open and use for the day to day running of your business and transactions is an important decision.
As an entrepreneur there are several factors you should take into consideration when thinking about establishing a relationship with any bank and these factors go beyond being able to send and receive funds as well as transaction speed.
Here are 7 things you should consider to help you pick the best business bank account for your business:
- Account Fees and Charges:
Consider monthly maintenance fees, transaction fees, ATM fees, and any other charges. Look for banks that offer transparent fee structures and consider your business’s transaction volume to estimate potential costs.
- Minimum Balance Requirements:
Some business accounts require a minimum balance. Evaluate your business’s cash flow to ensure that you can comfortably maintain the required minimum balance without adversely affecting your operations.
- Interest Rates:
If your business maintains a significant balance, consider looking for a bank that offers competitive interest rates on business savings or investments accounts.
- Online and Mobile Banking Services
Online and mobile banking services are crucial. Ensure that the bank provides online platforms and mobile apps, allowing you to manage your business finances conveniently and securely.
- Customer Service and Support:
Assess the quality of customer service provided by the bank. Look for a bank with responsive customer support, A supportive customer service team can be invaluable during unexpected situations.
- Business Loan and Credit Options:
Consider whether the bank offers business loans, lines of credit, or other financing options. Establishing a relationship with a bank that understands your business needs and can provide financial support when necessary will be crucial for your business in the long run.
- Business Account Features:
Evaluate additional features offered by the bank, such integration with accounting software, and other tools needed to manage your business. This can streamline financial management and enhance overall efficiency.
Look at the bigger picture; think long term
Whilst cost is undeniably a major consideration for most entrepreneurs when selecting a business bank account and freebies are alluring it’s important to strike a balance between affordability and the quality of services provided.
Opting for the cheapest option might save you money in the short term, but it could lead to frustration and limitations in the long run.
Don’t be cheap, opt for the best bank for your business, not the cheapest.
I believe that entrepreneurs should only bank with financial institutions that are willing to support business growth.
What does this mean in real terms?
This means that you may at some point need to access capital to scale your business. Do not consider banking with institutions who cannot give you access to capital when you need it most.
I have heard from many entrepreneurs who have found it almost impossible to access capital from their bank despite maintaining a well-managed business bank account and having a good credit rating.
If you are experiencing the same then you should consider switching banks as soon as possible.
In conclusion…
As an entrepreneur you should note that selecting a business bank account is a decision that goes beyond the surface.
Call and email the banks you’re considering, discuss your needs and talk to them about your long-term plans and ask how the bank can support.
Check their products and services and ensure the bank has what you need.
Seek to establish a relationship with a financial institution that aligns with your company, its unique needs, goals and aspirations.
At Prospa we are fully committed to supporting entrepreneurs and business owners, we provide access to capital as well as tools to help you and your team manage and grow your business.