Banks are often thought of as the enemy of businesses, but they can be invaluable allies to entrepreneurs in reality. If you’re starting or growing your business, there are at least seven ways your bank can help your business reach its goals and maintain financial stability. With the advice below, you’ll have everything you need to ensure that your bank ends up being an asset to your business rather than something standing as an obstruction to your success.
- Commercial Loans
You’ve finally reached a point in your business where you need to borrow some money. So you run down to your local bank, all excited about opening your first loan. But when you are almost at your last step, you get disappointing news that they don’t lend to businesses like yours. Most banks won’t lend to small businesses, but many commercial lenders are used to dealing with small companies. They can provide small business loans for a wide variety of business purposes.
All jokes aside, making deposits is one of the simplest ways a bank can help your business. If you don’t have sufficient cash flow to pay them back with interest on time, they won’t be able to collect any interest on you. Banks are indeed in it for themselves (they want to make money), but they also want to see their customers succeed and grow.
- Cash Management
With so many things to juggle, cash management can often get lost. Don’t let it disturb your everyday operations. Cash management can be one of your most valuable tools. It allows you to keep an eye on how much money is coming in and out of your business.
- Setting Up a Business Account
For a new business, it’s essential to establish lines of credit with suppliers and banks. The most vital step is to decide which type of account you need. According to Lantern by SoFi, “There are two types of business accounts that you can create: deposit-taking and non-deposit-taking.” If your business has zero cash flow, then a non-deposit-taking account will suffice, as you won’t be depositing any money into your account anyway.
- A Wide Range of Financial Services
Your bank can provide various financial services that might be useful to your business. These may include cash management, loan facilities, foreign exchange, and trade finance. In addition, many banks have in-house accountants who can offer advice on accounting matters.
- Electronic Payments and Banking Systems
These are now commonplace and make life a lot easier. If you’re not set up to take electronic payments already, consider giving your customers that option by integrating online payments into your business.
- Tax Reduction Services
Whether you are a sole proprietor or run a small business partnership firm, filing your taxes can seem time-consuming. It can be especially true if you have never done it before.
A business bank account allows you to make payments to yourself without a substantial fee. It’s much better than putting money in a personal account that won’t give you interest.