Choosing the right financial institution to handle your business finances can be overwhelming. It’s already hard enough to decide with your personal finances. It gets that much more difficult with your business. Let’s talk about what you should look for in a financial institution.
First, in the world of finance, size matters. You don’t have to select the largest bank, but you must evaluate your business needs and comfort level when working with a national or a smaller community bank. There are benefits to both. For example, when you select a community bank, you usually get better interest rates and a more personal experience. On the other hand, when you go with a national bank, you have the luxury of making access no matter where you are, but you are just a number.
Another thing to factor into your decision is your credit score. Your credit is important when selecting a bank. If you are considering a larger bank, you have to understand that your business credit will be a huge factor in their decision. If you have a low business credit score or your business is very new, it may be difficult to use a larger bank. Smaller, local banks are much more forgiving to new businesses, so if you are new, you may have to go with a local bank instead.
Finally, you must consider the location of the bank. Interest rates and overdraft protection are important, but the location is more important. You should consider how close your bank is to your home and your office and how easy it is to access your bank when you are out of town. Some of these things may not be a factor to you, but if they are, they are important to consider.
Partnering with a financial institution you feel comfortable with is important for your business, but you don’t have to rush that decision. You can take your time selecting the best bank for your long-term goals. If you need other financial help, such as loans or lines of credit, you can speak with Aspen Commercial Lending, and our team of financial experts can advise you according to your business goals.