Factors to consider when choosing a bank for our business
Factors to consider when choosing a bank for our business:- When we run a company, we need all the help possible because it is not easy to run a business.
In the end, the bank should be a“partner” that will help us in the management of the business by simplifying paperwork and helping, for example, when we need financing.
Not all banks are the same Depending on the service we are looking for, one entity will be more convenient than another. It is not the same to look for a bank to apply for a mortgage, manage our savings or investments, or keep our company account.
When looking for a bank, we have to see what we need for our business.
Let’s focus on the qualities we should look for in a bank when choosing to work in a choosing a bank for our business.
10 Tips for choosing a bank for your business
1, Security and Solvency of the entity
We assume that almost all banks are safe. But, as things stand, it is not far-fetched to investigate the proper functioning of the bank.
Also, the Deposit Guarantee Fund guarantees savings deposited in any bank if the entity enters the creditor contest. The limit of this fund is 100,000 euros per holder.
2, Company account
Having a company account and separating the personal account from the work account, whether you are self-employed or have an SME, is essential.
Accounts for companies or freelancers often have several different characteristics than personal ones, as it is a special financial product.
They will usually provide us with the specific services that a business requires, such as financing lines, exemptions from some expenses, packs of some services at a reduced price, business cards.
Although some special expenses usually charge fees, we must look for a bank where the fees are minimal. Try to find that not charge, card fees, no transfers, no account maintenance fees.
4, Online Banking
Online banking tends to have less expense than traditional banking. Almost all big banks have a subsidiary that only works online.
Whether an online or traditional bank, being able to carry out all kinds of operations online is necessary to save time and from the same mobile or computer to control all the operations related to choosing a bank for our business.
Our bank must have a good, simple, and secure web application. Performing operations is not just making transfers and checking balances.
There’s a lot more. For example, have alerts that inform us of certain movements such as income or payments (payroll, taxes.).
Although online banking has many positive things, it can be interesting that you have physical branches for operations as simple as taking money out of the cashier. Face-to-face with the director or whoever bears our account is also a factor that can make us decide for one bank or another.
You’ll never need an excessive number of branches because it’s rare for you to use them a lot. The same with a single branch in your municipality to solve any query or pull cashier will suffice.
6, Funding advice
There are many cases where we need financing, and it is not because our company goes wrong. Conversely, to embark on large projects often, we have to have liquidity for contracts, investment in equipment, or any other expense. We need the bank to advise us on the type of financing that suits us best.
7, Low-interest rates
Banks’ interests when lending money or making a policy is an aspect that must be taken into account, since interests, in the end, a significant expense on account of any company. Likewise, although they are now very low, we have to look at the interest that our savings produce.
8, Products and services offered to us
We must evaluate the products they offer us and the price of those products. Prices and types of cards, transfers abroad free of commissions, travel assistance, account overdrafts, promissory notes, factoring, advances, insurance, point-of-sale (POS) terminals). If you’re self-employed, for example, a retirement plan is a good investment.
9, Space to Grow
Changing banks is usually heavy. Therefore, when choosing a bank account, it is good to accompany you for many years, as your business grows.
We need to look a little further and analyze the services we may require in the long run. A close relationship with the bank can help us a lot in managing our company or business.
10, Customer service
Good customer service is important in any company.
Forgetting you to what they want to sell you, it’s not a receipt. Have them make you wait for an appointment, have a hard time contacting the right person to solve any problem. Therefore, when considering banking services for small businesses customer service must be taken into account and that communication with the entity is easy, fast, and fluid.
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10 Things to Consider when Choosing a Business Account
There are many small companies that combine revenue management and private issuance with business. Doing so will create confusion, as the distinction between personal assets and business assets will be difficult to distinguish.
Therefore, with a company account, it is very important to separate personal finance from business finance. As it has a relatively higher interest rate, a business bank account is different from a personal account and the amount of money that can be transferred is also greater than a personal account.
There are, however, several requirements choosing for a business account, including a large initial deposit and a large minimum monthly deposit.
1, Bank’s Reputation
The bank’s credibility matters. You don’t want to apply to a bank with a poor past and a bad reputation. So how about the credibility of the bank is the first thing you can remember when opening a business savings account in a bank. How much money do they possess? How about their yearly profit? This is critical because the bank will remain strong when the global economic crisis takes place.
How has the bank grown in recent years? Is there a good reputation for them on the stock exchange? Make sure you have the best bank account to rely on for the company.
2, Network Theirs
If your bank can be integrated with other banks within and outside the world, it is a nice thing to have. You can easily enter a company with other business owners and not think about remittances, etc. So, the next thing is to find out if your bank has a wide range of branches across the nation? What about its overseas network?
Are transfers through regions and countries easy to do? Anticipate this if in the future your company would partner with overseas companies.
3, Online services
When customers open an account, some banks need a physical appearance, but some do not. With this clause, would you prefer a bank or do you want a bank that offers you versatility through online services? It depends, eventually, on you! What one do you find easier to do?
4, Limitation of Money Withdrawal
Some banks set quotas for withdrawing money in one day, while other banks set smaller limits. It’s all right to tailor it to your needs. But it’s definitely more lucrative to consider choosing a bank for our business with a greater withdrawal cap in one day, right?
5, The Costs
Well, the sum of small administration costs that banks place on their savings might be overlooked by some other people. You should think about it to decide which bank you should want to have a business bank account. Make a comparison to see which one is the best bank that provides minimum charges. As you know, compared to other banks with the same facilities and services, some banks charge lower fees. Pay attention to ATM card fees, credit card fees, withdrawal fees, and other account-related fees as well.
6, Online Banking
Conducting bank transactions through an online platform is a necessity that can not be ignored in the digital world. With online banking, whenever you need it, you can check the activities of your account. Checking balances, making transactions, paying for printing account statements; you can do it at your favorite cafe while sipping your coffee.
So make sure that these facilities are provided for your own convenience by your business account. Check their mobile apps, internet banking, mobile banking, and other related apps that can be integrated into your daily equipment.
7, Minimum Account Balance Fees
It may not be too important because your balance will never reach the minimum level, but if so, you should also consider the fees that will apply.
8, Bonus Given
Not a secret: for customers who open a business account with their bank, some banks offer bonuses. So, if you’re still confused about determining which bank you’re going to choose to open up your savings for your business, just choose the one that gives you more incentives.
9, Interest rates
At this time, bank interest is no longer the principal investment instrument. But for comparison and consideration, if you choose a company account with higher interest rates than others, it seems okay.
10, Flexible Debit Cards
Once you give employees confidence to manage your business finances, this function is very useful. With low oversight, a bank that applies flexible debit cards to your business account is all you need. With this feature, you can restrict the facility of the debit card and withdraw the amount of money in a day so that your business financing is well maintained.
The importance of choosing a bank for our business our should not be underestimated.
There is a lot of supply, currently, from banks and not all work the same. It is worth informing yourself a little to get the first one right and not change banks every little time.
We need to identify which accounts and products are right and what kind of communication we will have with the bank. The points we have seen will help us to compare the different options that are on the market.
There are bank comparators and online reviews to investigate the main types of accounts, the expenses they entail, and the products they offer.
We can also ask our contacts what banking services they use and whether they are happy.