Empowering Small Businesses: A Guide to Choosing the Right Business Bank in 2024

| March 13, 2024 | By

Figuring out the finances of small businesses can be difficult, and it’s important to take advantage of every support system available to you. That includes one that you may not immediately consider: Your community bank.

But the stakes for choosing a bank can be high, and there’s a lot riding on the success of your small business. After all, what if you choose the wrong bank? You could be facing exorbitant fees, policies that catch you off guard, bad customer service—and that’s just to name a few.

But consider this: What happens if you choose the right bank? One with personalized service, access to speedy financing, and involvement in your community?

Believe it or not, it is possible to find the right bank that works for your small business, and we’re going to provide the information you need to make informed banking choices and find the right bank for you.

The Needs of Small Businesses—and How Community Business Banks Can Help

You’re going to need a banking partner that understands and supports your needs. But what are those needs?

The Financial Obstacles Many Small Businesses Face

We know—financial hurdles can be overwhelming. But it’s important to be prepared by knowing what obstacles you may encounter so you can find the right banking partner that will provide the support you need through any financial storms.

Some financial hurdles many small businesses face include:

  • Managing investments

  • Payroll

  • Securing capital for the hiring process, tools, inventory, and other essentials

There are several ways to address these challenges, however—including seeking tailored banking solutions.

Customized Banking Solutions for Small Businesses

Using a local community bank grants you several advantages, including tailored banking solutions, personalized service, and real relationships with financial experts within the bank.

Starting a small business can feel lonely and overwhelming. But when you have financial experts at a community bank in your corner, you aren’t addressing complex financial problems solo, which can entirely transform your experience.

Key Features to Look for in a Small Business Bank

Now that you know the financial hurdles ahead and how personalized banking solutions can help, you’re probably wondering how to find the right bank for your small business. Some essential features that small businesses should seek in a banking partner include:

  • Robust mobile and online banking options: Local banks care about their community and customer service, and therefore may offer more thought-out banking features that you can leverage.

  • Personalized service: Personalized banking solutions take your small business’s circumstances into consideration when discussing your goals and financial needs, leading to a more productive banking experience as well as solutions scaled to the various stages of your business’s growth.

  • Flexibility: Nothing is set in stone as a small business owner, and your banking solution should be able to meet you where you’re at and adapt to where you’re going.

  • Strong community involvement: Community banks get it. Small business owners are often very invested in their communities and want to work with other companies who feel the same.

Streamlining Finances for Small Business Success

Cash flow management—ensuring the way money moves in and out of your business is covers your business’s needs—is essential for helping small businesses thrive and find stability.

One of the top features you want to look for when choosing a bank is the ability to streamline your finances through intuitive tools and services. This includes:

  • Business credit cards

  • Bill pay services

  • Remote and mobile depositing

  • Lockbox services

  • Sweep services

Common Mistakes to Avoid When Selecting a Small Business Bank

Avoiding common mistakes is just as important as choosing the right bank for your small business. Let’s take a look at some of the typical pitfalls you may encounter when choosing a bank and how you can avoid them:

  • Choosing the wrong type of account: Choosing the wrong account can result in insufficient services or unnecessary fees, so make sure you carefully consider banks and banking accounts.

  • Not comparing banks: Not all banks provide the same services, support, and fees. Make sure to compare what each offers—including interest rates, accessibility of online banking services, and personalized service—before making a decision.

  • Not monitoring your account: Once you’ve opened your account, make sure you’re regularly checking your statements and transactions so you can catch discrepancies or fraudulent activities early.

Ready to See What the Right Business Bank Can Do for You?

Starting and growing a small business takes a lot of time, effort, and resources. This is why it’s critical to thoroughly do your research while keeping your unique business needs and goals in mind.

Interested in exploring what a community bank like BNC can do for you? Reach out to our small business banking experts at any time for personalized advice and solutions. In the meantime, we invite you to check out this resource we put together for small business owners like you: 4 Stops to Expect on the Road Map of an SBA Loan.

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