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View Full Version : What bank is best for a small biz



Chimpie
01-20-2009, 05:59 PM
What bank would you recommend for a small biz?

What would you look for in a biz banking account?

What experiences do you have?

I have used BOA in the past but would like to try something else now.

Thanks!

phanio
01-20-2009, 07:07 PM
Hard to say which bank is best. Everyone has their own tastes, needs, and past experiences.

Some things to think about:

Is your business local, regional or national? It helps to match a bank with your target area or coverage area.

Look for a bank you can grow with. If in the future, you think you may need sweep services/accounts or private investment services then find a bank that can offer those services.

Also, look for a bank that can meet you long-term lending needs. I banked a company that just out grew the local bank it was using. The company reached a million dollar monthly sales and needed a $10 million seasonal lines of credit. Its local bank could only provide half that amount. Further, this company wanted an automated sweep to pay its lines. The local bank could not do this – it could only do so manually which put a lot of added pressure and work load on the company’s controller.

Further, let’s say you are a national company and need an Accounts Receivable line of credit. To improve your cash flow (getting your fund faster – both for your cash needs and for less interest on your line) you may need/use regional lockboxes. Local or regional banks may not be able to service this need. Thus, in this case, a national bank would save you both time and money.

If your local and plan to stay local – look for a local bank – may be all you will ever need and you will get much better personal service. Also, don’t forget about credit unions.

The bank I worked for had the best products across this nation – the best I have ever seen. However, they were very expensive. We would tell clients – you want a Cadillac – you have to pay for a Cadillac.

Evan
01-20-2009, 07:40 PM
I agree with phanio, it really does depend on your needs now AND in the future. If you bank with a local bank and decide you may need a large loan to grow at some point in the future, would your bank be able to give you that money? If the answer is no, you may want to try somewhere else.

If you're looking for just a basic account at any old bank just for general checking, than go with what is convenient, and also probably free if they offer it. It may end up meeting your needs, but if not, make sure that you feel comfortable enough with their bankers to see if they'll be able to meet your needs.

Certainly if you don't need a Cadillac, don't pay for one.

billbenson
01-20-2009, 07:48 PM
I've been with Washington Mutual for a number of years. They were in trouble because of the housing market and were bought by JP Morgan Chase which should make them quite stable. All of the accounts I have with them, both business and personal are free. I've had really good service. I believe they are mostly concentrated in CA and FL though. I have no idea if Chase offers the same free checking, but certainly they will probably want to merge the two banks eventually.

Chimpie
01-20-2009, 08:09 PM
I've been with Washington Mutual for a number of years. They were in trouble because of the housing market and were bought by JP Morgan Chase which should make them quite stable. All of the accounts I have with them, both business and personal are free. I've had really good service. I believe they are mostly concentrated in CA and FL though. I have no idea if Chase offers the same free checking, but certainly they will probably want to merge the two banks eventually.

Have you received any information about the merger since the announcement was made?

billbenson
01-20-2009, 09:29 PM
The only change I've really seen is a small pitch of the buyout on the web site. Just a couple of lines. Other than that, its the same old bank I dealt with. No additional info that I recall. I may have gotten a notice in the mail, but if I did, I don't recall. My branch manager said they are closing some branches, but only in places where they are close to a Chase branch.

Aaron Hats
01-21-2009, 08:17 PM
Right now my mattress is looking like the safest place for my money.

Whichever bank you decide on, the best thing you can do is form a personal relationship with the people at your local branch. I try to show my face in the bank once a week so all the tellers and the two business bankers know me by name and face.

Aaron

Evan
01-21-2009, 09:02 PM
Whichever bank you decide on, the best thing you can do is form a personal relationship with the people at your local branch. I try to show my face in the bank once a week so all the tellers and the two business bankers know me by name and face.

I show up once every month or so, seeing as I use ATMs and rarely enter a branch. Yet they STILL know my name!

phanio
01-21-2009, 10:40 PM
Yes, banking is all about relationships - until you NEED something.

huggytree
01-22-2009, 07:01 AM
i chose the bank in my grocery store...it saves me time and i can deduct my trips for groceries...

make sure you get a money market and a checking. deposit your money in the money market and have it swept into the checking as needed...i made $1,200 in interest last year......my first year i didnt know about this method

Aaron Hats
01-22-2009, 11:14 AM
Yes, banking is all about relationships - until you NEED something.

I must be doing something right then because whenever I ask they deliver. You wouldn't believe how many free toasters they've given me. ;)

Business Attorney
01-22-2009, 11:46 AM
If all you are looking for is basic banking services (a checking account, debit or credit card, savings account, etc...), I would look based on price and convenience. Often the huge banks win on those counts, but not always. It pays to check.

If you need a small business loan, I would look closely at smaller, local banks. While most of the big banks do make some small business loans, it is not their bread and butter. Also, while mobility is a fact of life, in my experience it is more likely that your "relationship banker" will change much more frequently in a large bank. That means all your bank will really know about you is what it says in your file.

The fact that some day far into the future you may want a large loan that is beyond the capacity of your local bank is not a strong reason to go with a big bank now, particularly if it is less likely that the big bank is going to loan you the money you need now to grow into your big plans.

Whether you want a bank that is big or small, if you think you may want an SBA loan in the near future, I would make sure that my bank makes SBA loans, all other things being equal.

Vivid Color Zack
01-22-2009, 04:32 PM
I've been with Washington Mutual for a number of years. They were in trouble because of the housing market and were bought by JP Morgan Chase which should make them quite stable. All of the accounts I have with them, both business and personal are free. I've had really good service. I believe they are mostly concentrated in CA and FL though. I have no idea if Chase offers the same free checking, but certainly they will probably want to merge the two banks eventually.

Personally Wamu a very poor experience. They never once went out of their way to make anything easier for us or waive any fees. And they had fees for EVERYTHING!!! They had, on multiple occasions, made mistakes that caused us to overdraft and then given us a hard time when we tried to get credited back the overdraft fees. One time a large check was deposited via ATM and was not correctly signed (yes my fault) but instead of calling me or having me come to sign it they insist on sending it to their processing facility and then out from there back to me, so it's an extra 3 or 4 days that I can't use the money that I tried to deposit. I live one minute from the bank, just let me know something wasn't signed and I'd come sign it. Their holds were ridiculous. Even for a relatively small check I would have to wait 24-48 hours for it to clear. A few times I came in a few minutes before closing just to be told they were closed... this kind of service really pissed me off. I asked some of their phone reps while I was going through the system if they used WAMU for their personal accounts and I don't think I ever had one of them say yes.

I'm now with Wells Fargo and have had a lot of success with them. The business banker I was originally working with was awesome, their replacement guy is kind of a tool, but I still use their regular tellers and they all know me by name now. They have a business line at most (if not all ) branches that saves me time in line, I can deposit there as fast as at the atm and I get to flirt with the cute teller :) Customer service is superb and I've not yet had to wait an unreasonable amount of time for a check to clear. They'll usually clear half of it right away so some funds are usable.

I will never go back to Wamu and I was happy to hear they were going down.

billbenson
01-22-2009, 04:40 PM
You are in CA, I'm in FL. I think Wamu were aggressively marketing growth in Florida. I've had overdraft charges that were my fault reversed by the branch managers and all kinds of other good service. I have no plans on changing banks. Great service and help. They are also now stable being a part of Chase.

Vivid Color Zack
01-22-2009, 05:31 PM
Oh, yeah I realize they are stable I just meant when I first heard I said good riddance.

That's great you're happy with them though having a bank you can trust to help you out is a big deal.

Chimpie
01-23-2009, 05:21 PM
Thank you, everyone, for your feedback.

CraigFLA
01-29-2009, 01:40 PM
When I bought my business, I found that the best bank was the local smaller one. My success was that I connected with a VP banker who gave me my loan. He's moved to two other banks since we met 12+ years ago so I follow him around with my money. It's always been good for me because I know I can get money when I need it without all the hassle.

Vivid Color Zack
01-29-2009, 04:19 PM
Finding a loan for a new business now is much harder than it was 12 years ago. Just throwing it out there.

tuitionsource
02-10-2009, 12:10 AM
I have had better luck with my local bank than any of the nationals. My local bank has a division just for commercial and they really try to be active in the community.