When you start a business, one of the first things that you will need to conduct your business operations is a bank account. A bank is not just something that enables you to move your cash and acts as a cash repository. It’s much more than that. It’s like a business partner that makes your life easy, provides you support and guidance at the time of needs, and also helps you raise money when you decide to expand your business. For this reason, while selecting a bank for your business you should not just look at your current needs but also have a long-term view on what you aspire to be able to achieve in the future.
Let’s take a look at some of the things you should consider while selecting a business bank account.
Know your needs
Before you even start searching for the right bank, you need to be clear about what exactly you are looking for. Are you looking at just routine banking operations, want investment help, or need business working capital? How much cash flow are you expecting each month? Do you have personnel to help you with bank-related activity? Once you have clarity over what you want from your bank you can compare banks to understand what they have to offer.
For most entrepreneurs today, the ability to conduct banking online is a must. If you are in this category of people, then a smooth online banking experience is a must.
Dealing with cash surplus
If your business deals with large cash surplus, you may even want to look for a business savings account. Using a business savings account, you can earn some interest income on your cash surpluses which can be used for a various purposes.
Branch and ATM network
If the location of the bank and direct face-to-face banking is important for you, then you might want to look for a bank which has a branch close by or an extensive ATM network.
You also need to pay close attention to the fees charged by different banks. The fee structure for a business account is usually higher compared to a personal account and can vary significantly across banks. For example, some banks may charge a fee for online banking services while others may not. Some banks provide free transactions upto a certain limit after which there is a small fee levied on every transaction. This may include cheques, standing orders or cash transactions.
Reevaluating Your Bank
Even if you already have a bank that works fine for you, it is a good idea to periodically reevaluate your financial needs vis-à-vis your bank’s offerings. As your business grows your needs are likely to change and if your current bank is not able to meet all the needs, it’s time to change. You may even consider maintaining multiple accounts to help you satisfy the additional business needs.
A good banker can be a valuable partner for your business and can help you in different stages while you grow your business. It is therefore important to build a strong relationship with your bank and nurture it as you would with your employees or customers.