Money Smart: Banking Services for Small Businesses
Maximizing Banking Services for Your Small Business
Running a small business requires effective financial management. Understanding how to best utilize banking services is important whether you’re an aspiring entrepreneur, start-up, or seasoned entrepreneur. There are a wide variety of financial institutions that offer different products and services for small businesses. The key is to increase your financial knowledge, evaluate your options, and improve your chances of obtaining the services that are the best fit for your business to achieve financial growth.
Selecting the Best Financial Institution
Business owners have several options when it comes to banks/financial institutions. It can be overwhelming to know where to start and which bank to choose. Start with understanding the type of products and/or services you need for your business. Is it a business checking/saving account, credit card, line of credit, payroll, etc.? Think about the type of customer service and technology each bank offers. Consider and compare the interest rates, fees, and transaction timing for each bank. Do your research. Then, visit the website for each bank you are considering. Based on your evaluation, narrow your list to your top three choices and schedule appointments to visit each institution. Build relationships with the account branch manager and loan officer. These relationships will be important to helping the bank become more familiar with your business while giving you easier access to the information you need, along with answers to your questions.
Improve Your Chances of Getting a Small Business Loan
The first step in preparing for a small business loan is to obtain a copy of your credit report. It’s easy to believe that personal credit isn’t a factor when applying for a business loan. However, your personal credit history, credit score, payment history, etc. are all important factors when banks determine your eligibility, interest rate, and amount of credit associated with a small business loan. Take the time to review your credit report and improve your credit score, if necessary. Remember to keep your personal and business expenses separate. Mixing personal and business expenses and transactions can make it more difficult to track.
There are several financing options, and each option comes with different features. Business loans and lines of credit can provide essential capital for growth, inventory purchases, etc. Be sure to understand the features of each option and evaluate the terms, rates, repayment requirements, and approval process before moving forward. It’s important to select the best option that will align with your business goals and financial situation.
GNEC offers small business loans at low-interest rates to underserved entrepreneurs who may not qualify through traditional banks. Click here (https://www.gnec.org/business-loan-services/) to learn more about our business loans.
Resources to Learn More
It’s important to stay informed about banking products and services that can benefit your business. Tune in to our upcoming free webinar with PNC Bank, Money Smart – Banking Services for Small Businesses, on Sept. 27 at 6 pm EST.