How to Choose a Bank for Your Small Business
When choosing a bank for your small business, you will want to work with a team of financial experts who understand your needs and are available to meet with you to answer any questions you might have. After all, you're building a relationship with your bank who should be an extension of your own operations.
American National Bank of Texas is a community bank that specializes in serving the small businesses of North Texas. Our bank believes in fostering trust built on long-term commitment to your success. It's what we've done for over 140 years.
Here are seven suggestions for how to choose a bank for your small business:
Identify your needs as a small business.
When determining how to choose the right bank account, you should take some time to assess what your own business needs are. Consider the following questions:
- How many transactions will I make in a month?
- What's the lowest balance I will keep in my checking or savings account?
- What's my budget for banking costs, fees, etc.?
Additionally, your business may need a loan in the future. You'll want to choose a small business bank that has a history of lending to small businesses.
If your small business is active in the community, you will want a brick-and-mortar bank nearby, especially if you are a retail business. Retailers deposit cash and collect change every day. You don't want to drive to another city just to make these deposits. Plus, over time, you'll build a personal connection with American National Bank of Texas employees - which can relieve quite a few headaches.
Choose a bank that is knowledgeable about local markets.
In general, regionally-focused community banks are better for small businesses because they know the local market in which you operate. Community banks provide one-on-one access to a loan officer. When being assessed for a loan, a community bank is able to factor in a borrower's character beyond just a credit-score model. For this reason, a community bank is distinctly different from an impersonal big city bank.
Choose a bank that can assess your risk and provide the necessary support.
There are many reasons why small businesses don't succeed. Sometimes the math just doesn't work. The demand for the product or service isn't high enough, or it's not priced to produce the necessary profit. Sometimes a company grows too quickly and isn't able to scale the operation effectively. Poor accounting can be a problem too, especially if the business doesn't have a cash cushion to weather a crisis. And if the business is in a declining market, there may not be much that can be done. A community bank that specializes in serving small business customers can help you assess your risk as you move forward with your company. It's this kind of support that is invaluable to a business owner.
Choose a bank where decisions are made locally.
Small business owners should work with community banks where all the loan decisions are made locally. Not only will this provide a quick turnaround, but it also allows owners to speak directly with the people approving the loan. They can take a more personal approach beyond the numbers, which can't tell the whole story behind your business.
Choose a bank that is a Preferred SBA Lender.
Work with a community bank that is comfortable with the U.S. Small Business Administration (SBA) loan system. A Preferred SBA Lender can provide federally subsidized loans to help protect the bank against default, which makes it easier for banks to lend money. SBA typically offers more flexible repayment terms. Banks earn the "preferred lender" designation by successfully making and servicing a large number of small business loans under policies and procedures established by SBA.
Choose a bank with comprehensive mobile and online services.
Mobile and online banking has made everything easier. With mobile deposit, you no longer need to drive to the bank for every deposit. With enhanced online banking, you can easily view and organize your financial information across several accounts. All of it saves time, which for a business owner can make a huge difference.
Choose a bank that goes beyond "a signature and a handshake".
A small business bank should do more than sign you up for an account or loan and then forget about you. Banking is a long-term relationship. It goes beyond your immediate needs to services you may require in the coming years. Ideally, your bank should see your business as an opportunity to provide useful services and help out if you run into a financial emergency. You should be able to meet with your banker at least once a year to review your company's financial state and plan for the future.
Why American National Bank of Texas is the small business bank for North Texas
At ANBTX, we offer a local connection, keep small business insight, and advanced banking technology. We believe the connection with our small business clients is more than getting you to apply for a loan, more than how to choose a checking account, or any other banking service. Everything we do is to better support your efforts. For over 140 years, we've been there for small businesses, and we will continue to be your bank, for life.