Managing your finances in the first year of your business can be tough but the right bank can make all the difference. With many banks who have the services you need, the two questions you have to answer are:
– How do I pick the right one?
– Who is giving me the best of services?
Gone are the days of mountains of paperwork, banking has also become a seamless aspect of our life thanks to digital services.
Here are five things to keep in mind while selecting the right bank for your start-up:
1. Business Costs and Cash Flow:
The first thing that you need to do while setting up a business is assessing your costs. Analyse your financial needs and choose a bank that provides services that will benefit you the most. Oh, what a headache, right? Let’s make it simpler – as a small business, you need to consider three aspects – start-up capital, growth capital and cash flows.
So, remember these factors and choose a bank that will offer you these services:
- Range of business loans such as starting capital, equipment loans, expansion loans, etc. with:
- Shortest application and approval times with easy online applications and verifications
- Attractive rates of interest
- Automated EMI payments and reminders
- Suitable account-based services, such as:
- Digitised account management, creation, and deactivations
- Stock market and investment insights as well as advice
- Liquid accounts with minimal costs
- Easy, online fund transfers and payments
- Automated online transactions
2. Banking Services:
Banks have become more customer-friendly and I’m sure they have made your lives easier too. But, we all know how banking works now – there are innumerable services offered by each bank! So how do you find the right one? The first step is to look for a bank which will allow you to digitally conduct most of your banking and financial needs.
Internet banking has made our lives so much easier – fast-paced transactions, online applications and verifications, automated payments, account management, rapid assistance, and much more! For example, certain banks allow you to add a payee in 30 minutes with almost immediate fund transfer – a great way to save time and keep suppliers or vendors happy. Some other banks have rapid loans and payment approval timelines which reduces the time spent on banking and also, makes it convenient.
3. Banking Expenses:
We all know how banks charge for transactions and accounts. But, if you don’t keep a check, you can end up losing a chunk of your revenue in banking expenses! To avoid that, identify a bank that can offer you services at nominal costs, which include:
- Transactions, payment getaway and bill payment charges
- Account maintenance and creation – minimum deposit ledgers, deposit and withdrawal charges
- Loans, mutual funds and investments – application charges, interest rate, premature and late payment charges
- Credit/debit cards – application charges, interest rates, late payment charges
4. Terms of Usage:
Based on the services that you essentially require, choose a bank with operations and regulations that best suit your needs. Carefully review all terms of usage before choosing a bank to keep a check on, such as:
- Unnecessary charges and procedures
- Risk factor
- Account liquidity criteria
- Availability of services
Opt for a bank who will keep digitally updating you with changes in policies and regulations – through emails, SMS or push notifications on apps.
5. Size Matters:
Make sure you plan for the success of your business and choose a bank that can fulfil your future needs too. For example, you will not have to pay extra for ATM usage or foreign transactions when opt for an international bank. Alternatively, large-scale banks, whether national or international, will be able to assist you better with business growth and expansion scenarios.
When you are looking out for the right bank, don’t simply select the first one that approaches you. Go out there and find the one that fits your needs and understands you in a manner that helps shape your financial journey. After all, your business is your castle of dreams!