Published on August 14, 2019
Choosing the Best Bank for Your Business
Published on July 24, 2019
Understanding the importance of choosing a bank for your business
Are you interested in finding the best bank to open a business account? Choosing the right banking relationships to meet a business’s financial needs is one of the most important decisions that owners and principals can make. It is also very different from addressing personal banking needs. To make the best decision requires research, not only of the different services, rates, and fees, but also of the not so obvious added value, and yes, community ties, a bank brings to the table.
One of a business owner’s most crucial responsibilities of maintaining a sound financial state of affairs. With so many transactions and variables to deal with throughout the year, keeping matters organized and sufficiently scrutinized can diminish an owner’s ability to proactively grow their business.
Part of the task has to do with ensuring that a business is using the right financial products and using them wisely. The degree to which this happens often leads back to their choice in banking relationships and how close or transactional they are.
Here are 5 tips for finding the best bank to open a business account:
Set and understand your priorities
It’s important to know what you need and want from your bank. Are you looking for business loans? For what purpose? Are loan decisions made locally? Naturally, this comes with learning what type of business loans a given bank offers and what their application processes are like. For example, did the banker take time to truly understand your company history, its strengths, weaknesses and the opportunities you’re pursuing?
At Banesco USA we offer several business loans depending on your specific reality and needs. As a community bank, growing and supporting our local businesses and the broader economy is part of our focus. That’s why our decision-making process is local and takes place right here in our Coral Gables headquarters by people that understand local dynamics, know the neighborhoods and have the pulse of the area.
Are the latest technology and convenience like automatic bill payment or credit card processing important for you? Taking the time to have a better idea of what a business needs helps us narrow down the choices that can best help owners gain back some of the time they need to grow their companies.
If technology and personalized service is a priority for you, get to know the bank you are considering. At Banesco USA, you can enjoy the convenience of connecting to your accounts with free, secure, easy access from any computer or device. We also offer a mobile check deposit feature to conveniently deposit checks using your mobile device anywhere and anytime. That’s a big deal when you take into consideration the toll that local traffic can take. Most importantly, you can rely on us for client support 24/7 with Banesco’s Voice system.
Banesco’s USA digital competency and use of technology to serve customers in innovative ways is uncommon among banks of its size. Not only are we technology-driven but we are also differentiated by our emphasis on local and personalized banking.
Small or Big Bank?
“Smaller, regionally focused banks may be better because they know local market conditions,” notes The Wall Street Journal. “They often provide more one-on-one access to a loan officer and put more emphasis on a borrower’s character rather than just applying a credit-score model. And they can be more flexible during tough times, such as covering overdrawn accounts without imposing stiff penalties.”
National banks may offer a wide selection of products and services but, local banks are often better at applying and customizing them actual customers. In some cases, community banks can have a better chance of granting a business loan or finding a more flexible interest rate.
Fees are one of the main things to look out for when opening an account. Make sure to research and compare banks’ fees for ATM use, check writing, monthly account statement fees, and interest rates. Also, take into consideration wire transfers and credit card processing fees, if either of those is important to your business.
The Bank’s Credibility
Most importantly, make sure to know if a bank qualifies as a Small Business Administration Lender. Having an SBA-sponsored bank may be a big help in the loan approval process.
Banesco USA provides long-term financing, SBA approved loans for example for the purchase and construction of commercial real estate. Financing can be used to acquire existing property or for the purchase of land plus construction costs.
To qualify for SBA 504 financing, the qualifying business must have:
- Tangible net worth of less than $6 million
- After-tax profits of less than $2 million
- Fewer than 500 employees
- Other eligibility requirements may apply
SBA 504 Loans may be used for financing with conditions such as:
- Acquisition of fixed assets such as land and building – the owner must occupy at least 51% of leasable space
- New construction – the owner must occupy at least 60% of leasable space
- Purchase and Renovation – the owner must occupy at least 51% of leasable space
Most successful business owners and principals will agree that building a solid relationship with a business banker who understands your business is key. A good banker can help an owner throughout many years including different business cycles and stages of growth.
If you’re interested in finding the best bank to open a business account and are considering exploring your options with Banesco USA, you can reach one of our experienced personal bankers by calling +1 (888) 228-1597, or by visiting one of our convenient branch locations.