What should small businesses look for in a banking partner?

by Curt Queyrouze, President

Small businesses are a key part of the American economy. They account for 99 percent of all operational companies in the country, as the Small Business & Entrepreneurship Council pointed out, and employ slightly less than half of all workers in the country. With so many small businesses operating across all 50 states, it's not surprising that many different financial institutions have developed strategies for working with these organizations and bringing them on as customers.

Of course, you don't want to just choose a bank that focuses on acquiring small businesses like yours as a partner - you want a financial institution that has experience in this sector and can help your company prosper. Consider these factors as you look for a banking partner to work with your small business.

Understand their experience with similar businesses

All reputable, FDIC-insured banks will provide a basic level of service and guarantees in terms of the funds you deposit. This should be your floor for finding a banking partner, not your ceiling. Your partner should have a number of relevant banking options to offer your company beyond the standard checking and savings accounts. A few options to keep in mind are:

• Certificates of deposit, which function as investments with a guaranteed rate of return, and can aid in reaching long-term savings goals when there's a low appetite for risk.
• Treasury management, which offers personalized assistance for businesses in terms of managing a variety of financial concerns. Our own treasury management services can cover a wide range of considerations or just a few, including ACH origination, payroll distribution, wire transfer services, remote deposit capture and much more. We also include a dedicated relationship manager, who helps you make effective decisions about treasury management and your banking needs in general.

A bank that can offer its knowledge and experience to you, when applicable, can lead to benefits for your business. We have more than two decades of experience partnering with small companies, and we're ready to use that organizational knowledge and skill to help your organization make the best banking choices possible.

Look at what they have to offer

If access to checking and savings accounts are your minimum and additional banking options are a way for a potential partner to stand out, what other options should you keep an eye out for? While not an absolute need for all businesses like banking, lending options are incredibly valuable and commonly used across the modern economy by small companies. If you find a financial institution you trust that offers both of these services, you'll have an easier time working through the administrative side of things and keeping track of important points like loan payback timelines and interest rates.

At TAB Bank, one of our key differentiators is offering an array of business banking and lending options. Lending choices for your company include:

• Factoring: This type of lending takes existing unpaid invoices held by your company and turns them into collateral for a line of credit. If your business needs an infusion of cash and can't wait for the long repayment timelines that are so common in some industries to reach completion, factoring can prove to be an effective, manageable and straightforward choice.
• Asset-based lending: As an alternative to traditional types of lending, asset-based lending takes a broad view of your organization and its assets. That includes accounts receivable, inventory and even some types of equipment.
• Equipment financing: Designed with tractor-trailers in mind, our equipment financing option can help your company secure the vehicles it needs to prosper.

Finding the right banking partner isn't always easy. In fact, you should set aside some time to carefully consider your options and deliberate before you make a choice. After all, you're trying to choose a partner who you can ideally count on for many years to come. To learn more about the business banking options we have to offer or to learn more about opening an account, get in touch with us today.

If you are looking for more in-depth information about these topics, please see our whitepaper titled, Why a Good Business Banking Partner is Critical for Organizational Success.  You can click on the tile below and gain immediate access to this content.

About the Author

Prior to joining TAB Bank, Curt amassed over 30 years of commercial finance and commercial banking experience. His career has included various credit, sales, and portfolio management positions in asset-based lending, factoring, corporate banking, oil and gas finance, real estate lending, financial institutions, healthcare finance, and middle marketing lending. Previous roles include Senior Vice President/Director of Loss Mitigation for Whitney Bank where he managed the resolution of a multi-billion-dollar problem loan portfolio. He also previously served as Division Credit Executive for PNC Business Credit and as Chief Operating Officer of The Receivable Exchange, playing a critical role in the launch of this internet-based, factoring auction platform.

Curt holds a Bachelor of Science degree in Accounting from Louisiana State University. He has also taught many classes on financial analysis, cash flow analysis, loan structuring, and workout strategies. He has served in many volunteer leadership positions for non-profit organizations advocating arts and humanities and disease awareness and prevention. As President, Curt oversees all strategic, financial, credit, and operational functions of the bank.

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