As a part-time CFO service provider, I cannot express strongly enough how important it is to find the right business bank for you and your business. For me personally, I needed a bank that fit both my personal and business needs, which I did. I was looking for a bank with multiple locations as well as a substantial ATM network since my clients were not only local but national. I also wanted a bank that had local authority to grant me business credit in the form of credit cards and lines of credit, which it does. I have learned that I have enough to worry about and my bank should not be one of them. You should do your homework upfront to make sure the bank fits you and not the other way around. Here are some tips on how to choose the right bank:
1. The bank has a business division focused on lending to small and medium-sized firms
This is relatively easy thing to check out. You can do a quick internet search to find out the top small business lenders. Once you have the list you should call and find out if they already service clients in your particular industry. It will be easier to get bank credit when the bank is familiar with your industry and you do not constantly have to educate them on your business.
2. The bank offers a mix of services and products that are important to you
Each business is different so you want to make sure that the breadth of products and services offered fit with your business today and for the future. You do not want to have to switch banks because you out grew them. You want a bank that can support your growth. In order to ensure this, complete a list of items you want today and the near and not so near future. These items may include traditional loans, lines of credit, SBA loans, business and employee credit cards, direct deposit, 401k services, online banking, payroll and so on.
3. The bank has the capacity to offer loan amounts that fit with your company's projected growth
This can be found out by asking the right questions such as
- What is the average loan size the bank makes to small businesses today?
- Is the bank growing fast enough to support your financing needs as your company grows?
4. The bank has the retail and online banking channels that fit your company's needs
It is important that your chosen bank have a robust retail and online banking capability. As a Chicago-based part-time CFO provider with clients inside and outside of Chicago this was a top priority for my business.
- The bank branch both online and offline must be convenient for your business office but for your actual operations. For example, is it readily accessible for you to get cash on hand for cash paying clients during your regular business operations?
- Does it have good online banking capabilities wherease you can easily download banking transactions into your accounting software resulting in time savings?
You may have other needs not listed but this should get you started on finding the right bank for you.
Loftis Consulting provides part-time or project-based CFO services to improve profits and cash flow of small to mid-size businesses including start-ups. To learn more about our other services visit our financial modeling services page.
