For constant growth, a small business needs money. This money will could come from debt or equity financing.
For constant growth, a small business needs money. This money will could come from debt or equity financing.
For those who opt for debt financing, you must ensure a good working relationship with your bank.
You need to make sure that your bank has reasonable fees for its services and that it does not charge you for every small service it provides.
Many people have been forced to pay unfair bank charges. This is very common with banks since they sometimes use such charges to offer low interest rates.
But such unnecessary charges affect the profitability of the business especially if one has several accounts in different banks.
It is very important to have a bank which is receptive to your business needs. The bank should be able to finance the type of business you are in. You should know that banks don’t finance every business.
They are selective when it comes to funding because of different risks attached to different business ventures. Consider the flexibility of the bank to provide funding to your business needs.
What level of customer care and service delivery does your bank offer? How does it respond to your complaints as a client, is your bank willing to help you in technical things like understanding your statements?
As a business person you sometimes work more hours. You therefore need flexibility and convenience to transact with your bank. Look at the ease of withdrawing, depositing and transferring money.
Check the time and hours the bank is open. It also requires comparing the transaction and payment systems offered by different banks.
This is so important because it will enable you to save a lot of time and money.
Does your bank give you overdraft protection, so that you will pay interest only on the overdrawn amount? Can the bank offer you unsecured loan in case your banking record is good?
You need to be able to negotiate with your bank the interest rates.