Is Your Business in the Right Checking Account?
Recently, I got a call from a potential new customer inquiring about our business checking accounts. These calls always get my blood pumping with the anticipation that the business on the other end of the line will need every service I can offer. It can be very exciting!
In this case, the business was a startup and not expected to carry very high balances for the first year. In an attempt to put this business in the right account, I asked a few questions. How many deposits will you make each month? How many checks will you write each month? What is the anticipated average balance each month? Based on the answers, I was able to suggest an account that mirrored the needs of the customer. Okay – end of story, right?
The type of account that may work during the infancy stages of a business will most likely be detrimental to the business as it grows. With any luck, as the business grows, so will the volume of transactions processed through the account. It is for this reason that banks offer a multitude of business accounts. Each account offers something different, whether it’s a higher number of transactions allowed or a higher balance requirement.
It is imperative that you, as the business owner, keep an eye on your account and assess the activity that flows through the account. If you suddenly start to see service fees where there were none the month before, look at the volume of transactions. Has it increased dramatically over the months? If so, touch base with your banker to find out what options you have to upgrade to an account that will fit your growing business. The most basic business account that initially appears to be the best value could end up costing you a bundle in fees.
As a Business Banker, it is my job to sell business products, but more importantly, to bring in new business and help business owners navigate through the product jungle we call banking. I can suggest every product under the sun, but if it isn’t a good fit, I won’t have that business for long.
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