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4 Strategies for Picking a Bank to Handle Company Finances

Having the right bank is like having a solid business partner. It’s there for support, advisement, and financing. But finding the right bank can take a while. To help speed up the process, consider the following four strategies for picking a bank to handle the company’s finances.

1. Select a Bank With Industry Experience

Reduce frustration by choosing a bank with a track record of working with similar companies. For example, some banks are comfortable with old-school brick-and-mortar firms but not with Internet-based newcomers. Others may have expertise working with those in financial sectors but not those in manufacturing.

The advantage of finding a bank that’s worked with similar companies is the bank representative will be familiar with the challenges. If the business is unlikely to have physical inventory as collateral for a loan, the bank will likely be more understanding. However, a traditional loan officer may not be willing to accept the risk.

2. Choose a Bank That Offers the Products and Services Needed

Make sure the bank provides everything needed. Ensure not to pay for things that aren’t necessary.

Are paper checks needed or will all payments be electronic? Is there a fee for using a checking account? Can the fee be avoided by keeping the balance above a certain amount?

What other fees are there? How much is the penalty for overdrafts and returned checks? Is it necessary to maintain a certain activity level for each account?

How many ways is there to access the funds in the company accounts? How quickly can withdrawals or transfers be done? Is there a fee for withdrawals and transfers?

How quickly is to apply for a loan and receive a response? Is there a simple way to make loan payments?

Will this bank likely be able to handle the business as it grows over the next few years or will the financial needs quickly outstrip the bank’s capabilities?

3. Make Sure the Bank Provides Reliable Support

Is there a possibility of talking to someone at the bank to resolve a matter? Is support available around the clock or only during traditional banking hours?

If a response is needed, how long is the expected wait? Does the nature of the business demand immediate answers, or is waiting up to 24 hours for a reply acceptable?

4. Look for a Bank With Up-To-Date Technical Capabilities

We can only anticipate a growing reliance on computer technology in the future. Is the bank being considered keeping pace with these advancements?

For example, does the bank allow for global transactions when traveling? What services are available if a portion of income is in foreign currency?

Does the bank have a solid reputation for online security? What cybersecurity measures are in place to protect personal identities and accounts?

It is important to take the time to make an informed decision when selecting a bank. Choosing the right one and building a long-term relationship is preferable to the hassle of frequently switching banks.

Hugh Grant
Hugh Grant

Hugh Grant is a technology, business, finance and conservative news blogger with a deep concern for facts and realities.

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