Opinion

Choosing A Banking Service For Your Small Business

Banking service - cfamedia

Banks that are SME friendly, provide their customers with quality financial products, such as credit options and bank loans.

Out there, are different banking services, serving multiple and specific purposes, on their financial products.

As a small business owner, how do you determine, which banking service option suits your business?

Here are some useful tips, to employ, when looking at the many options you are faced with, in choosing banking  service for your business:

What Is Your Banking Habit

Business finance experts have mentioned that the best way to know what you require, from your bank is, to check the financial history of your established business, of at least, the last six months, especially, if your business is new.

Doing this would help you have an overview, of things like; expected surplus cash at hand, by the end of the month, monthly expenses, credit card transaction.

This information would guide you, in determining your actual requirements, from the bank of your choice.

A Branch Visit Will Do

If your option is, to use a physical bank, then, it is better to pay a visit, to the bank.

Your visitation will ensure that you have a discussion, around your type of business, products, and services that you may need to add on, in the future.

As long as you would be working with your bank, in the course of your business, you need to form a good relationship with your bank, in order to make progress.

Make A Decision Between, Online and Physical Banking

With the rise, in the financial inclusion drive, online banking has offered features for the benefits of small businesses.

Using these features, they conveniently pay their bills, online, through electronic transfers.

If your small business runs operations on a high volume of cash, compared to digital funds, an online bank might not be the best option for you.

A nearby bank, with a physical branch is your best bet.

Sometimes a physical bank may also be the best option, if you need a loan, as your physical presence, might increase your chances of getting the loan approved.

What Features Do You Need?

Banks do not offer the same features. Small local banks, especially, the ones that offer the micro-financing facilities, give the convenience of personalised service, to their customers.

Bigger banks, on the other hand, would offer many more features, with a wide range of products.

Bigger banks, however, may come with their shortcomings, as they tend to offer less attention, to small businesses.

Local banks, especially, the ones in the rural areas, tend to have a personalised connection, with small business owners and they offer flexibility, for loan applications.


Also, read How to get banks to say yes to your small business loan


What Is The Earning Potential?

Your chances of earning some extra cash may be high, depending on your choice of bank.

If you choose a bank that can afford reasonable interest rates for your deposit accounts, most, especially, if you are depositing a very large sum of money.

You Have Multiple Banks Options

No laid down rules on, how many banks you are set, to perform your financial options with.

You might have a mix of different banks of your choice, depending on the features that suit you.

Bank loan options, are not the only services that you need, as a small business owner.

There are other services that, banks, with good loan options, might not offer you.

Check Out Customer Service Rankings

Make your findings, on the bank’s customer service, before picking your choice. Ask around, from fellow small business owners, or, check out some online reviews.

If you do not know of any small business owners that, you can ask, personally, you can find out more about what customers think about their banking experiences, by doing going through some online resources.

Banks that have good customer service ratings, on small businesses, are the best options you could consider.

Change Is Inevitable. Do Not Resist

After making your decision and you got relative success from it, you could, as well, make a bank switch.

There might be a need for you, to make changes, if you feel that the bank you opened an Account with, is no longer serving your purpose.

Do not be afraid of changing your bank or having a revamp on your banking service. It may, eventually, be required, to do so.

Also, read 6 Nigerian banks that are SME friendly


Featured Image: uSwitch


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