Commercial Banking: From Small Businesses to Big Corporations
There are a myriad of small business options for entrepreneurs and savvy business owners alike to choose from in today’s banking industry. Navigating the minefield of small business loans and interest rates can be a confusing time if you don’t know what you’re doing. You can find a brief synopsis of where to start here.
When looking for a business loan, keep in mind that you’ll need to come prepared with a business plan. While analyzing potential banks to do business with, seriously consider the interest rate each is posing, as well as the amount they’re willing to offer for a small business loan. Never take more than you can reasonably pay back, and make sure payment schedules are well-aligned with your income structure. Some banks will even allow you to choose which day of the month you want to pay them. Additionally, many will slash interest rates and other fees if you’re willing to open an account with the financial institution and sign up for automatic payments, giving the bank permission to withdraw the payments from your account.
If you’re interested in staying on top of your money at all times, then online banking is the only way to go. While local credit unions and other smaller financial institutions might offer a slightly more appealing rate or the promise of fewer fees, you’ll want to weigh this against the potential carried by doing business online. Mobile and Internet banking access are the primary methods of keeping vigil over business finances. Most banks will require little personal information, in addition to your FEIN, to open a business bank account.
Businesses intending to deal with international customers will want to be sure they look into foreign currency accounts. However, for those who manage business with frequent debit and credit card transactions, they might appreciate a merchant account far more. Current style accounts are the most common and basic of business accounts. This is a good place to start if you’re just getting your feet wet in the business world. Instant access accounts are perfect for many who invest and trade regularly, but some still prefer the safety that term deposit accounts provide by holding funds for a limited time before becoming available to them. Regardless of the type of business you intend to manage, bank accounts can work for or against you.