7 Tips for choosing a Business Banking plan

The right business banking services are crucial in supporting your new business’ operations. As banks are offering numerous services, select the best ISA which offers best credit cards, business loans and other business-related services.

Here are seven essential tips to wisely choose the right business banking plan for your small business:

business banking
photo credit: Elliott Brown

1. Area/Location

In choosing a bank, location plays an important role. Depending on the nature and size of the business, you will require a bank which has been widely spread all over the area or a small bank which is just near to your location. Here are some issues to take care when choosing the right bank:

  • Depending on the nature of your business, a bank close to your business premise is important if your business requires you to rush to the banks on regular basis.
  • If most of your business transactions are online then the location is not going to be the concern. In that case you could focus on some other options or features offered by the bank.
  • Check for the customer support which you are going to get when you get associated with the bank. The support should be friendly, responsive and flexible.

2. Online Banking Selection

Online banks offer convenience ways for you to do transaction quickly right from your office premise. However, just like anything else in business, online banking has its own set of benefits and drawbacks. If you are considering to choose an online bank, then you should do your due diligence.

3. Fee structures or Bank charges levied by the Bank

You will have to check the fee structure of each bank and see that what the charges which they are offering are. Each and every banks are having their own policies or the standards which specifies that what amount has to be deducted for each transactions.

4. Pen down what you require

You should be clear about your banking needs quite well. you should let the banking officers know the level of flexibility you require for the cash flow management, the size of your loan, the availability of the line of credits and the urgency of the business banking account.

5. Look for bank reviews

Finding out what people think about a particular bank can help you decide whether the bank is for you.

6. Interact directly with the Bankers

Most banks nowadays would appoint a Personal Relationship Manager (PRM) to manage your account. However, you should choose the level of interaction with your PRM.

7. Compare the features of the bank

There are plenty of marketing incentives which are talked about to bring in front of the customers. Before finalizing the bank you should spend some time comparing the features and benefits of the banks, so that you can gain insights about the offers. You can list down the positive and negative about each bank and based on it do finalize it. Some of the points which needs to be taken care are annual or monthly fees, minimum deposit, monthly balance, how to qualify for line of credit, and other banking features.

About the Author: This article is written by Ravinder Sahu