If you feel your bank isn’t meeting your needs as a business owner, it might be time to say goodbye. Many banks fail to show appreciation to small businesses or fulfill their needs. A J.D. Power study found that only 32 percent of respondents feel their bank understands their business, and only 37 percent of small business owners feel that their bank appreciates their business.
If your bank isn’t offering the services required for you to succeed, it may be time to switch to a new platform. Updating your accounting and importing your automated expenses is a significant element of changing business banks, so it’s essential to know when you need to change your bank.
Limited Banking Services
Your business bank should scale and grow with your business. If you notice your business exceeding transaction and cash deposit limits, it might be a sign that you’ve outgrown your business checking account. If your bank functionality is limited and you’re not satisfied with the service, it’s time to look for an alternative platform.
An outdated banking system can hinder your business’s growth and affect efficiency. Start exploring your options and compare fees, transaction limits, and services at other banks until you find one that best suits your business needs.
Excessive or Surprise Fees
Operating a business already comes with a long list of expenses; the last thing you want is your banking fees to set you back. A hidden charge or a monthly recurring fee can cause strain on many businesses and affect their growth. Ideally, you want a bank that won’t charge you for standard banking services like account, overdraft or withdrawal fees.
It’s important to be cautious when you switch your business bank accounts and look for a platform that offers a range of services without charging hefty fees. Choose a bank partner that allows you to bank how and when you want. This may involve holding a small balance in the account, eliminating the need to have a minimum balance requirement, or offering a range of services without excessive or surprise fees.
You Can’t Do All Your Banking Online
As a business owner, you’re likely to be juggling multiple tasks across the business daily. The inability to conduct all your banking online requires you to spend time and money visiting a brick-and-mortar location. Online banking is a safe, convenient and user-friendly solution, allowing you to bank 24/7 wherever you are.
When you choose an online banking platform, you can delegate bill payment tasks to team members, issue corporate cards virtually, and track employee spending from anywhere at any time. The ability to perform all your financial tasks online allows you to allocate your time and resources to other essential business tasks.
Lack of Access to Capital
Many companies often need new capital to operate or grow their business. However, securing small business funding isn’t always easy, especially from traditional sources like big banks. According to statistics, 44 percent of U.S. companies didn’t receive the financing they applied for in 2019 because their business already had too much debt.
If your bank rejects your loan application, it might be challenging for your business to expand or succeed, especially if it is small. If your business cannot obtain adequate financing through your current bank, start searching for a new platform that offers practical solutions to help your business operate and grow.
If your business can relate to any of the signs mentioned above, it might be time to consider switching to a new banking platform. One common misconception is that switching banks is a complex process. But if you choose the right platform, switching business banks will be a breeze and save your business money in the long run!
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