A Few Things To Look For In A Commercial Bank
Posted on: 30 October 2017
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When you have a business, you should not use a regular, or personal, account at the bank; you need to have a commercial account, preferably in a bank that deals with businesses. Take the time to sit with a banker and discuss your needs, and be sure to include things you may require in the future as well. The more you understand what the bank offers and how each product is handled in the bank the better you can choose the institution that will fit your needs. Here are a few of the things you should keep in mind when looking into commercial banking.
Types of Accounts
You will definitely want a business checking account. You should also have a separate checking account for payroll. It is a good idea to have a savings account too, so you can add to it when you need to save money for a large purchase or expansion of the business. You may want to open a line of credit or take out a business loan to have some spare working capital at all times. If a bank does not offer all this, you should probably look for a different bank to work with.
Account Basics
Make sure you understand any minimum balances you must keep and any limits to the number of transactions you make each month. Ask what type of fees may be incurred for the accounts, too. While the fees may be small, they may cause your account to be overdrawn and incur even more fees and charges.
Extra Features
A business needs to make regular payments to the government to cover payroll taxes. These payments can be made at commercial banks if you are set up to do so; make sure any bank you use will take these payments. In addition, because you may be making large cash deposits at night, make sure there is a drop box and you have a locking, zippered bag to make the drops. While you could use an ATM, large deposits can take many transactions, which leave you vulnerable, while a drop bag takes only a moment at a drive-up window.
Once you have established a relationship with a commercial bank, you can go to them for some financial advice, too. They may have the solution to a problem you are facing, including offering a loan at a reasonable rate. Commercial banks are better equipped to help your business grow and remain profitable.