Small Business: Finding the Right Financial Partner

Character, Values & Support

Your financial institution can play a critical role in your business’s long-term success. Beyond providing competitive products, the ideal partner offers guidance, responsiveness, and commitment to building lasting relationships with the companies they serve.

Look at the following qualities when evaluating your options:

• Community Commitment:

Does the financial institution actively support local businesses, non-profits, and community development? If so, they will likely have a deeper understanding of the local business landscape and can provide better guidance and insights.

• Personalized Service:

You deserve to be more than just an account number. Seek a financial partner who takes time to understand your business, offers dedicated service and insights, and treats your goals like their own.

• Responsiveness:

Business moves fast, and so should your financial support. Ensure you’ll have easy access to real people, whether that’s in-branch, over the phone, or online. There will be times when you need quick answers or tailored advice, and it provides peace of mind knowing you have a partner available to help.

• Transparency:

The financial world is filled with jargon and can quickly become confusing. Look for an institution upfront about terms, rates, and fees. Every dollar counts when starting a new business, and you shouldn’t have to worry about hidden fees or unclear policies that can disrupt your finances.

Tip: Stop into a few financial institutions to seek information (and conduct your own interview). Are they upfront about pricing? Do they show a genuine interest in your business? After a few minutes, you’ll likely start to get a feel for the organization’s values and overall character. Use this information in your decision-making process.

Understanding Your Account Needs

Once you’ve narrowed down your list of financial partners, the next step is selecting accounts that align with your business operations and financial goals. The best accounts help simplify cash flow, minimize fees, and provide flexibility for your company.

You likely will not need all these account types initially; however, it’s important to understand your options and identify the capabilities and benefits of each.

Business Checking Accounts

Like your personal checking account, your business checking will become your financial hub. Money is funneled in and out of this account daily through sales and expenses. Seek an account that is easy to manage and cost-effective, focusing on the following areas:

• Recurring Fees: How much are the monthly account fees, if any?
• Flexibilidad: Does the account provide convenient access through in-branch and digital services? Can you transfer funds into your business account easily, if needed?
• Capabilities: Are you able to utilize services like online bill pay, ACH transfers, and mobile check deposits?

Business Savings & Investment Accounts

When starting your small business, you’ll quickly discover that unplanned expenses pop up regularly. It’s crucial to regularly put aside money into a savings account to build up an emergency fund. You can also store retained earnings and operating capital in your savings, so it’s separate from your checking account.

As your balance grows, consider moving money into higher-earning accounts, such as money market accounts or share certificates. Earning interest or dividends on your money helps generate additional revenue for your company.

When exploring savings and investment accounts for your small business, consider the following:

• Liquidity: Are you able to easily access the funds as needed? Are there early withdrawal penalties or minimum balance requirements?
• Competitive Rates: Are you able to earn a decent return on your investments? Are the accounts federally insured?
• Pricing & Fees: How much are the account fees monthly, if any? Do the costs outweigh the returns you’re earning in dividends or interest?

Tarjetas de Crédito Comerciales

A business credit card is more than just a tool for spending. It can be a valuable way to manage expenses and cash flow, build credit, and earn rewards. It’s critical to remember that a business credit card is still a loan – and you want to use it responsibly while paying the least amount of interest possible.

When choosing a business credit card, keep the following in mind:

• Credit Effect: Is the business credit card linked to my personal credit score?

Nota: Many creditors tie small business credit cards to the owner’s personal credit. This characteristic can help boost your credit score if you manage it responsibly. However, it can also negatively impact your personal credit if you overspend, or your business doesn’t work out.

• Pricing & Fees: How much will your credit card cost for your business? Does it charge excessive interest rates, costly annual fees, or other hidden fees?
• Flexibilidad: Does the credit card program offer convenient expense tracking or other tools to assist your business?

Business Loans & Lines of Credit:

Whether you’re just starting or planning to expand your business, access to financing can be a game-changer. When evaluating a business loan or line of credit, you must ensure it aligns with your business’s cash flow and expected revenues.

If you’re ready for a business loan, consider the following:

• Pricing & Fees: How much will the loan cost? Are the interest rates reasonable, fixed or variable, and are there prepayment penalties?
• Tailored Lending Support: Does the lender work with you to find the ideal loan solution based on your company’s financials?

¡Estamos aquí para ayudar!

Every business owner will tell you that starting and growing a small business is no easy feat. Having the right financial partner in your corner can significantly impact your company’s overall success. Take time and evaluate your options and seek a partner that you trust to help grow your business and achieve your financial goals.

If you want to learn more about our small business products and services, we’re happy to help. Please stop by any of our convenient branch locations or call 888-777-9982.