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You are here: Home / Cash Flow & Finance / How to Choose the Right Banking Partner for Your Business

How to Choose the Right Banking Partner for Your Business

January 14, 2025 By Melinda Emerson Leave a Comment

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Finding the right banking partner can be a game-changer for your business. Whether you’re a solopreneur just starting out or an established company looking to expand, having the right bank in your corner ensures that your financial needs are met efficiently and that you have access to valuable tools and advice to help your business grow. But with so many options out there, how do you determine which banking partner is the right fit for your business? In this blog post, we’ll explore what to look for in a banking partner, key factors to consider, and how to build a strong, mutually beneficial relationship with your bank.

  1. Understand Your Business Needs

The first step in finding the right banking partner is understanding your business needs. Take some time to evaluate where your business is now and where you plan to be in the next three years. There are 4 key items to consider:

  • Transaction Type and Volume: Do you make daily cash deposits, process frequent payments, or handle large sums of money? How fast do these funds clear your account?
  • Credit Needs: Will you need loans or lines of credit to grow your business?
  • Payment Solutions: Do you require specialized services like the ability to accept and issue payments by credit and debit card or international payment processing?
  • Technology Integration: How important is it for your bank to integrate with your existing accounting or payroll software?

Every business has unique financial needs. By defining yours clearly, you can narrow down the type of banking services and features that are non-negotiable.

  1. Look for Specialized Business Services

Not all banks are created equal, and not all cater to small business clients in the same way. Some financial institutions make lending decisions strictly on the three C’s: capacity, credit score and collateral. Others offer specialized services tailored to specific industries, while others focus more broadly. When evaluating potential partners, look for services such as:

  • Business Checking and Savings Accounts: These should come with high yield interest rates to help you earn, competitive fees, flexibility, and features like advanced mobile banking technology and a simple digital platform.
  • Credit and Financing Options: Check for business loans, SBA loans, and lines of credit with reasonable terms.
  •  Financial Management Tools: Services like automatic transfers, online bill pay, expense tracking and mobile check deposits are essential for many small businesses.
  • Payment Services: If you accept card payments, a bank with integrated payment services can save you time and money.

For example, Owners Bank offers a range of business banking solutions including account options, fast access to credit, and easy to use digital tools in a single digital platform. Owners Bank is tailored specifically to small business owners, making it a strong contender for entrepreneurs looking to streamline their financial operations.

  1. Evaluate Fees and Costs

Banking fees can add up quickly if you’re not careful. Before committing to a bank, ask for a detailed breakdown of fees associated with:

  • Account maintenance
  • Minimum balance requirements
  • Overdraft protection
  • Wire transfers
  • ATM usage (especially if you travel or operate internationally)

Don’t just look for the cheapest option—focus on finding a bank that offers the best value for the services your business uses most.

  1. Prioritize Accessibility and Convenience

As a business owner, you need a banking partner that fits seamlessly into your life and your business. Accessibility and convenience are critical factors to consider. Here are some questions to ask:

  • Digital Banking Services: How robust is the bank’s app and online banking platform? Can you access all the services you need remotely? Is everything seamlessly accessible in one platform?
  • Branch and ATM Locations: Are there physical locations nearby, or are you comfortable with online-only banking? 
  • Customer Support: Is support available 24/7, and how easy is it to reach a live person when you need help?
  1. Assess the Bank’s Reputation

Your banking partner’s reputation matters. Do some research to ensure the bank is financially stable and trusted by its customers. Here’s how to check:

  • Look at Who’s Backing Them: Follow the financing, you always want to look at the financial backing of the banking institution you are working with. Look at the FDIC’s website to confirm the bank’s status and to make sure your deposits are insured. For example, Owners Bank is backed by Liberty Bank, in Middletown, CT. Established in 1895, Liberty Bank is the oldest and largest independent mutual bank in the country with more than $7.5 billion in assets and is FDIC Insured. 
  • Check Financial Ratings: Look for banks with strong credit ratings and financial stability.
  • Read Reviews: Online reviews can give you insight into what other business owners think about the bank.
  • Ask for Referrals: Talk to other business owners in your network to see which banks they use and recommend.
  1. Build Relationships with Your Bank

Banking is not just about accounts and transactions—it’s about relationships. A good banking partner will act as an advisor, providing guidance and resources tailored to your business needs.

Here’s how to foster a strong relationship with your bank:

  • Schedule Regular Check-ins: Meet with your banking representative to discuss your business’s financial health and goals.
  • Be Transparent: Share your business plans and challenges so your bank can recommend appropriate solutions.
  • Use Their Resources: Many banks offer free workshops, networking events, and access to business advisors. Take advantage of these opportunities.

For instance, some banks, like Owners Bank, go the extra mile to understand small business challenges and provide personalized support with access to business bankers via phone and chat, making it easier for owners to feel confident about their financial decisions.

  1. Consider Growth Potential

Your banking needs will evolve as your business grows. A bank that is a great fit today may not be able to support you five years down the road. When choosing a banking partner, look for one with the capacity to grow with you, offering scalable solutions such as:

  • Higher Credit Limits: As your revenue increases, you may need larger loans or credit lines.
  • Expense tracking: Growing businesses often require more sophisticated expense tracking and reporting systems.
  • Bill Pay Options: This is helpful if you want to automate payments or quickly pay vendors online.
  1. Compare Banking Options

Once you’ve identified your needs, it’s time to compare banking options and right size your bank to fit your needs. Create a spreadsheet to track key features, fees, and benefits from different banks. Schedule meetings with banking representatives to ask specific questions and get a feel for their customer service.

Consider the following types of institutions:

  • Traditional Banks: These often have extensive networks and a broad range of services.
  • Credit Unions: Known for personalized service and lower fees, credit unions can be a great option for local businesses.
  • Online Banks: These typically offer lower fees and robust digital tools but may lack physical branches.

Specialized Small Business Banks: Some banks, like Owners Bank, focus exclusively on business clients, providing tailored solutions and dedicated support.

  1. Test the Waters Before Committing

Before fully transitioning your business accounts, consider opening a secondary account with your chosen bank to test their services. Use this account for smaller transactions to evaluate ease of use for online banking and mobile apps, responsiveness of customer support, and processing times for payments and deposits. This trial period can help you identify any red flags before committing to a long-term relationship.

  1. Reassess Periodically

Your relationship with your banking partner shouldn’t be “set it and forget it.” As your business evolves, periodically reassess whether your bank is still meeting your needs. If your current bank isn’t keeping up, don’t hesitate to explore other options.

Choosing the right banking partner is one of the most important financial decisions you’ll make for your business. The right bank can provide not just accounts and loans but also strategic advice, innovative tools, and peace of mind. Take the time to evaluate your options, prioritize your unique needs, and build a relationship with a banking partner that truly understands your business.

If you’re ready to take your business to the next level, start by researching banks that specialize in small business services. Whether it’s a traditional bank, credit union, or business-focused institution like Owners Bank, the key is finding a partner that aligns with your vision for growth and success.

This is a sponsored post, but the views in this article are the opinion of the author, Melinda Emerson, SmallBizLady.

 

About the Sponsor

Owners Bank is built specifically for small businesses with specialized features for small business needs in one innovative digital platform. Manage your deposits, loans, credit cards, business tools, and even your external bank accounts within a single app. Owners is a division of Liberty Bank. Member FDIC 

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Filed Under: Cash Flow & Finance, Fix Your Business, My Recommendations, Your Small Business

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About Melinda Emerson

Melinda F. Emerson, “SmallBizLady” is America’s #1 Small Business Expert. She is an internationally renowned keynote speaker on small business development, social selling, and online marketing strategy. As CEO of Quintessence Group, her Philadelphia-based marketing consulting firm serves Fortune 500 brands that target the small business market. Clients include Amazon, Adobe, Verizon, VISA, Google, FedEx, Chase, American Express, The Hartford, and Pitney Bowes. She also has an online school, www.smallbizladyuniversity.com, that teaches people online marketing and how to start and grow a successful small business and publishes a blog SucceedAsYourOwnBoss.com. Her advice is widely read, reaching more than 3 million entrepreneurs each week online. She hosts The Smallbizchat Podcast and is the bestselling author of Become Your Own Boss in 12 Months, Revised and Expanded, and Fix Your Business, a 90 Day Plan to Get Back Your Life and Reduce Chaos in Your Business.

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