As a small business, one of the first and fundamental financial choices you make is selecting a bank. Where you process the funds you earn and spend in the operation of your business is a critical decision to make – and reevaluate – from time to time. It’s important to know that you have the appropriate products to suit your needs at any given time.
The fact is, every business is a little different from every other. The key is cutting through the multitude of business banking products offered in search of the products that best suit your business’ particular needs.
How do you determine your needs and choose wisely among a bank’s business products? Basically, look for the products that will be of most benefit to your business and the way you run it. To help you avoid being overwhelmed, let’s discuss some of the choices with which you’ll be confronted and criteria you can use to assess your needs for them:
Lines of Credit1 - Your business may need a line of credit right away, or it might simply provide a comfortable buffer for those “just in case” scenarios. Revolving lines of credit offer the flexibility to draw funds for business purchases as needed, and repayments are also flexible. Credit availability is replenished with each repayment, giving you control over your credit line.
Business Loans1 - It’s great to have a banker in your corner when you’re looking for a loan. Term loans from a bank can help with budgeting, since you’ll know up-front what your monthly payment will be. Loans guaranteed through the Small Business Administration (SBA) can be another great way for a start-up company to find the capital it needs. Make sure your bank is a Preferred SBA Lender.
Business Credit Cards1 – A business credit card can give you another alternative to help solve cash flow challenges. Having a credit card available to handle a unique opportunity or unexpected expense may eliminate the need to use personal checks or credit cards, which can muddle record keeping. Increasingly, businesses use the Internet to purchase supplies and book travel, which makes having a credit card more essential than ever. Many banks offer business credit cards with rewards programs that pay you back as you spend each month. Look for rewards you will use, like cash back on purchases for your business.
Business Checking - This is an area where lots of money can be saved – or wasted. Measure fees against your needs. If you deposit or write a lot of checks, make certain that the number and/or frequency of your transactions won’t cause you to incur fees. If you’ve had the same checking account for your business for a while, consider if your checking transactions have significantly changed as electronic banking has boomed.
Other Banking Products - These can include financial services like automated payroll, merchant services1 (to help you process card payments), cash management options, and business online banking. Your best alternative may be to make an appointment to sit down with a banker who handles business clients exclusively. He or she can show you the range of products and services available, and help you decide which ones fit your needs. You may find that bundling some of these products together will save you money on fees.
Whether your business is new or established, your banking products can make running the financial life of your business easier and more profitable. Remember to regularly re-evaluate your business’ banking needs to make certain you’re getting precisely what you need for the way you run your business today.
To find out more about business banking services from Nevada State Bank, drop into any of our Business Centers, or call 702-545-6831 (south) or 775-636-7186 (north).
1Subject to credit approval. Restrictions apply.
The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice.