How to Choose a Bank for your Home Business
by Chileshe Mwape
Published on this site: July 28th, 2005 - See
more articles from this month
You should thoroughly consider your business needs when selecting
a financial institution or bank for your small/home business.
You may want to consider the following points:
- The types of products and services that are offered.
- The bank's criteria for qualifying for a loan.
- The minimum balances for accounts, interest rates and
charges for account services.
- Location and Access to ATMs
- Online Banking Services
One bank may specialize in home loans or auto loans while
another may focus on commercial loans for businesses. Some
banks may only offer basic deposit accounts while others have
lock box services, sweep accounts, and even online banking!
It's very important to evaluate your business needs before
you select your banker.
Here are some of the things that your banker may be able
to help you with:
- Help you with the cash management needs of your business.
- Offer investment products of varying maturities or risks.
- Provide advice regarding what it will take to qualify
for the loan that best meets your needs.
- Provide special loan programs for small businesses, including
SBA loan programs and other government-guaranteed or agency
loans.
- Assist you with finding financial information on your
industry.
So compare different banks in order to find the one that
will serve your business's needs and will also provide support
and assistance during the infancy stage of your business.
Selecting a bank that you can work with will be especially
important as your business grows.
Start shopping around by gathering information to help you
make this important selection. Compare interest rates on deposit
accounts and basic consumer loans (most business loans are
negotiated, so the rates won't be posted at the banking center).
Also, look carefully at the charges for services. Tell them
about your business and the form of organization so that they
can tell you what special products and services or restrictions
might apply.
Before selecting a bank, be sure to have a good understanding
of your own business needs, and what you need from your bank.
If you know what you will need from a bank, it will be much
easier to evaluate and compare between various services. Remember,
it is a good idea to establish a relationship with a banker,
before you need money. The right banker will be someone that
understands the needs of emerging and growing businesses.
They will be interested in your business dreams and will help
you achieve them.
Chileshe Mwape writes for the US Banks Website: http://www.us-banks.org/
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