At TowneBank, I partner with many small businesses on their journey, from getting started to building an empire. Throughout my career, I’ve learned that being a small business owner is not just about running a business, but also putting in the time and energy to help it grow. Let’s explore the banking services that every small business needs.
Five essential banking services:
- Bank accounts that are separate from your personal accounts. It is essential to keep your personal and business finances separated for several reasons, but tracking expenditures and managing these finances are key reasons. Having an accurate picture of each is essential to understanding your cash flow. This will make your accounting more efficient, especially at tax time.
- Efficient online and mobile banking tools. These tools go beyond just checking your balances. They can also help you set goals, approve transactions on the go and set up entitlements for others who may need to help you with your finances. For example, if you have an outside bookkeeper, you can ‘entitle’ or set up permissions for this person to log into your accounts and only see what he or she needs to see.
- Fraud prevention tools. Think your business is too small to worry about fraud? Think again. Fraudsters look for vulnerable targets, and if your account information and transactions aren’t secure, this makes your business a prime target. It’s also important to understand that, in cases of fraud, banks are not required by law to reimburse businesses for lost funds. This protection only applies to consumers. It’s important to your bottom line to ensure you protect your banking information.
- Streamlined payment systems. Many banks have tools available to help you take payments, record them and report on them, allowing you to spend more time running and growing your business. These reporting systems are even more important at tax time — and your accountant will thank you.
- Access to a good line of credit. Business owners know expenses pop up at any time — the copier breaks or you need to invest in a new system to run your business more efficiently. When you establish a relationship with a banker who can make local decisions (i.e., without calling an unknown office), ask about a line of credit to take care of those needs anytime, from anywhere.
Unlocking the benefits of small business banking solutions
How do you find these tools and the right bank? Ask around! There are several Peninsula bankers with experience in small business banking, including niche markets. Find a bank with the knowledge to help businesses of every size and industry.
With the right banker, you will have access to tools and a professional with experience to help you answer your questions — even when it comes to updating your business plan. Plus, as you grow your business, you’ll need access to capital so you can do things like purchase inventory, buy equipment for your office or even expand, which require different types of lending options. A dedicated banker can help you walk through options so you can understand the pros and cons.
How to get started
Here are some questions to ask yourself as you consider the right bank and banker for your business:
- How long has the bank been open?
- Is the bank FDIC insured?
- What experience does the banker have with your industry?
- What are the fees you may incur for certain services?
- If you are taking advantage of an introductory offer, what happens when the offer ends?
- Can you openly communicate with the banker and is the banker able to educate you on the ins and outs of financial services best for your small business?
- Can you establish a sense of trust with the banker and the financial institution?
- Are there others in your industry who use the same bank? Ask your banker for examples of customer stories and take time to review them.
I love helping small businesses get established and watching them grow. If you need help choosing financial services to help your business thrive, get some of those questions answered to ensure finding the right banker for you.
