6 Key Considerations for Choosing the Right Business Bank
When it comes to evaluating financial products, much attention is given to bank accounts and borrowing facilities. However, the assessment of the bank itself often gets overlooked. As a savvy business owner, it’s essential to scrutinize the bank you choose to partner with. Here are six key elements to consider when evaluating your current bank and comparing it with others:
1. Surveys and Reviews
Start by looking at surveys and reviews, such as the Business Banking Quality Survey, which gauges SMEs’ likelihood to recommend their bank to others. You can also check Google Reviews and Trustpilot to gain insight into customer opinions.
2. Cost vs. Service
Before evaluating banks, create a list of your business requirements and ask important questions like, “What do you get for your money?” and “Does ‘free banking’ really mean free?” Understand how the bank’s values align with yours, and consider how well their products meet your needs.
3. Branch Availability
Consider the availability of bank branches, especially with the shift towards online banking. If in-branch services are important to you, a traditional high street bank may be a better fit.
4. Eligibility for Products
Be aware of eligibility criteria and limitations for different products, such as restrictions related to certain industries. This will help you determine if a specific bank is the right fit for your business needs.
5. Lending vs. Security
Evaluate the lending options provided by the bank and understand the terms related to security and guarantees. Here’s where you can consider alternative sources of funding that may better suit your business.
6. Bank Funding vs. Other Sources
Explore if bank funding is the best source of money for your business, or if alternative funding options, such as family funds, equity, or specialized lenders, may be a better fit.
By carefully assessing these key elements, you can ensure that the bank you choose aligns with your business goals and values, ultimately setting you up for financial success.
