As the owner of a small business, you make choices every day that impact your bottom line. Does the location for your new shop have good foot traffic? How about parking? What about your potential neighbors? Equally as important, choosing the right bank is key to the health of your business.
The question is: What should a small business owner consider when choosing a bank? Are they all that different – and what can the right bank offer?
Here are some tips to help you decide:
Convenience is king.
If a bank is only open the same hours as your business, what happens when you need to deposit cash after closing? Choose a bank that is open early and late, then you won't have to find time to make the deposit during the work day, and you can instead focus on your customers.
If you don't need to visit the brick–and–mortar location of your bank, pick one that has a great online banking experience and customer support.
Small in size, not value.
"Small business owners should seek out a bank that treats small business like big business," said Jay DesMarteau, Head of Small Business at TD Bank. "Look for a relationship, not just a transaction."
You'll see this value in the products your bank can offer you. TD, for example, helps small business owners avoid monthly fees with its TD Business Convenience Checking Plus account, which has a competitive $1,500 minimum balance requirement.
More bank for your buck.
Finding a bank that offers a wide range of services will help you streamline your finances so you don't have to withdraw money at one bank and then run that cash to a different bank to pay bills. Choose a bank that offers free bill pay, so you can easily schedule and manage payments, submit remittance information and have an audit trail for payment history.
Making decisions isn't always easy for a small business owner, but choosing a bank that will be your business partner so you can focus on growing your business is the right first step.
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This article is based on information available in May 2013. It is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, or other advice and should not be acted or relied upon without the advice of a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available.