How to choose the right bank to start your business?

When you open your own business, you inevitably face the need to choose a bank. Regardless of the size of the company, almost every business needs a dedicated bank account. Choosing a bank is an important step, and there are many parameters to consider: range and cost of services, conditions and acceptance of loan applications, quality of relations, etc. We will look in detail at what exactly you should pay attention to when choosing a bank for your business and how to make the best decision.

Selecting potential banks

Today, you can choose between traditional banks, which offer a time-tested banking relationship with the option of face-to-face meetings with a dedicated advisor, and online neobanks, new players in the market that appeal with pricing and digital services. Choosing a potential bank depends primarily on your needs, consider that the nature of your business and the size of your company will influence your choice. If you prefer an online bank for business, start by comparing the offers on the websites of each selected bank. You should also compare user reviews and ascertain the reliability of each bank.

Criteria for choosing a bank for business

To choose a bank for business, you need to compare the prices and services of each bank you apply to. Don't forget to also consider the quality of your relationship with the banker. To begin with, you need to list all the banking services that you will need in the long run.

These may include: account maintenance and service fees, which are usually charged monthly or quarterly; terms and conditions of payment instruments such as credit cards or cheque books and related fees; transaction fees, which depend on the amount of debit transactions in the account.

You should also consider interchange fees (MIFs) for using credit card payment terminals, terms and conditions and the cost of bank overdrafts, including the amount of overdrafts and fees allowed. If you will have significant cash surpluses, look at the terms and conditions for investing surplus funds. During meetings, you should ask for a suggested rate for each of these services. You should then compare offers and, if necessary, renegotiate terms with some banks.

Bank financing for business

If you need a bank loan, your choice of bank depends primarily on which institutions are willing to lend to you. In case several banks express their willingness to lend, it is important to carefully compare the terms of each offer. At the same time do not forget to take into account the cost of other banking services, as sometimes it is more favourable to choose not the most attractive credit offer, if you take into account the cost of additional services. If only one bank is willing to give you a loan, you have essentially no choice and will have to work with that bank so that your project can be realised.

The quality of the relationship with the banker

We advise you to schedule meetings with several bank counsellors. In addition to learning about the services you can take advantage of, the first meeting with a banker will provide an initial indication of the quality of the relationship being maintained. Your banker will be an important partner, so a good relationship with him or her is essential. Secondly, the banker should be responsive to your requests. This will allow you to respond quickly if the need arises. If there is little difference in rates between the banks you apply to, you should prioritise the quality of the relationship when making your choice.

Tips for setting up a business and choosing a bank

When choosing a bank for a business, it's important to approach the issue comprehensively and thoughtfully. This decision requires not only a comparison of rates, but also an in-depth analysis of all the services offered, which you may need both now and in the future. You should not base your choice solely on credit terms - it is important to consider other aspects as well. If you have a good credit history, use this advantage to make the most of the competition between banks. After all, many financial institutions are willing to make concessions to attract a promising client, and, skilfully negotiating, you can achieve really favourable terms.

In addition, do not forget the importance of a personal relationship with your banker. This person can be your key ally in doing business. If you face financial difficulties, a reliable banker will help you find the best solution using his knowledge and experience. Therefore, it is important that he or she is not only a professional in his or her field, but also a responsive partner who can be quickly contacted in case of need. It is this kind of relationship that can be the key to the stability and success of your business.

Conclusion

Choosing a bank for your business is a strategic decision that determines the financial stability and development of your business. Don't be afraid to spend time on research and negotiations, because a good bank can become a reliable partner supporting you all the way. Carefully evaluate all offers, strive for long-term relationships and remember that in the business world it is not only the quantity but also the quality of services provided that matters.