Opening a Business Banking Account

When choosing a bank partner, relationships can matter as much as interest rates and services

Opening up a business bank account takes just minutes, but building a quality relationship with your bank can take years. Find a banking team that is truly excited about your business. The banking team should also be able to:

Explain its services clearly and how they can benefit your company.
Analyze your credit needs and explain if the bank can meet them.
Explain reporting requirements the bank will expect from you.
Provide fast access to bank team members when needed.
Allow your financial department to monitor details of your accounts online.
Refer you to alternate financing sources such as reputable leasing agents when the bank is unable to furnish additional funding.
Introduce you to prominent members of your local business community.

Make a wish list of services you'd like

That list should include bank lending policies and interest rates charged and how they'll mesh with your company's anticipated financial needs. Also include less tangible factors, such as customer service, access to key executives and the quality of a bank's online account-management tools.

Get your company's finances in order

The operating statements and other financial documentation you show a prospective banker should accurately reflect the health of your company. Before meeting a prospective banker huddle with your accountant or financial consultant to explore ways to put your company in its best financial light.

Choose between small and large banks

Large banks make money on volume and may offer streamlined lending procedures. Large banks may also offer state-of-the-art Web-based account-management services, allowing your accounting and financial departments to easily interface with your accounts. Small banks, for their part, may take a special interest in your company and view you as a valuable customer. Small banks also may be more connected to the local business community than their larger competitors.

Follow through

Carefully nurture your banker relationships. Send quick emails on your company's recent successes. Warn bankers well in advance of potential problems to assure them you're addressing the situation.
SBA present additional advice on small-business borrowing.

Hedge your bets if necessary: A single bank may not be able to meet all your financial needs but a combination of bankers and other service providers such as payroll processors might.
Become a model customer by utilizing the bank's many services when possible, pay off loans ahead of time and let the bank manage any cash windfalls.
Stay aware of staff changes at your bank that might result in your account being managed by someone new.
Be receptive when rival bankers solicit your business. As the owner of your company you have an obligation to find the best terms.