Understanding the importance of choosing a bank for your business
Are you interested in finding the best bank to open a business account? Choosing the right banking relationships to meet a business’s financial needs is one of the most important decisions that owners and principals can make. It is also very different from addressing personal banking needs. To make the best decision requires research, not only of the different services, rates, and fees, but also of the not so obvious added value, and yes, community ties, a bank brings to the table.
One of a business owner’s most crucial responsibilities of maintaining a sound financial state of affairs. With so many transactions and variables to deal with throughout the year, keeping matters organized and sufficiently scrutinized can diminish an owner’s ability to proactively grow their business.
Part of the task has to do with ensuring that a business is using the right financial products and using them wisely. The degree to which this happens often leads back to their choice in banking relationships and how close or transactional they are.
Here are 5 tips for finding the best bank to open a business account:
It’s important to know what you need and want from your bank. Are you looking for business loans? For what purpose? Are loan decisions made locally? Naturally, this comes with learning what type of business loans a given bank offers and what their application processes are like. For example, did the banker take time to truly understand your company history, its strengths, weaknesses and the opportunities you’re pursuing?
At Banesco USA we offer several business loans depending on your specific reality and needs. As a community bank, growing and supporting our local businesses and the broader economy is part of our focus. That’s why our decision-making process is local and takes place right here in our Coral Gables headquarters by people that understand local dynamics, know the neighborhoods and have the pulse of the area.
Are the latest technology and convenience like automatic bill payment or credit card processing important for you? Taking the time to have a better idea of what a business needs helps us narrow down the choices that can best help owners gain back some of the time they need to grow their companies.
If technology and personalized service is a priority for you, get to know the bank you are considering. At Banesco USA, you can enjoy the convenience of connecting to your accounts with free, secure, easy access from any computer or device. We also offer a mobile check deposit feature to conveniently deposit checks using your mobile device anywhere and anytime. That’s a big deal when you take into consideration the toll that local traffic can take. Most importantly, you can rely on us for client support 24/7 with Banesco’s Voice system.
Banesco’s USA digital competency and use of technology to serve customers in innovative ways is uncommon among banks of its size. Not only are we technology-driven but we are also differentiated by our emphasis on local and personalized banking.
“Smaller, regionally focused banks may be better because they know local market conditions,” notes The Wall Street Journal. “They often provide more one-on-one access to a loan officer and put more emphasis on a borrower’s character rather than just applying a credit-score model. And they can be more flexible during tough times, such as covering overdrawn accounts without imposing stiff penalties.”
National banks may offer a wide selection of products and services but, local banks are often better at applying and customizing them actual customers. In some cases, community banks can have a better chance of granting a business loan or finding a more flexible interest rate.
Fees are one of the main things to look out for when opening an account. Make sure to research and compare banks’ fees for ATM use, check writing, monthly account statement fees, and interest rates. Also, take into consideration wire transfers and credit card processing fees, if either of those is important to your business.
Most importantly, make sure to know if a bank qualifies as a Small Business Administration Lender. Having an SBA-sponsored bank may be a big help in the loan approval process.
Banesco USA provides long-term financing, SBA approved loans for example for the purchase and construction of commercial real estate. Financing can be used to acquire existing property or for the purchase of land plus construction costs.
To qualify for SBA 504 financing, the qualifying business must have:
SBA 504 Loans may be used for financing with conditions such as:
Most successful business owners and principals will agree that building a solid relationship with a business banker who understands your business is key. A good banker can help an owner throughout many years including different business cycles and stages of growth.
If you’re interested in finding the best bank to open a business account and are considering exploring your options with Banesco USA, you can reach one of our experienced personal bankers by calling +1 (888) 228-1597, or by visiting one of our convenient branch locations.
Here’s why you should consider a community bank.
Local banks or community banks as they are also known, are a valuable option versus large national and regional banks, especially for small and medium-sized businesses and individuals. A community bank is a locally-owned and operated financial institution whose size is defined by the Federal Deposit Insurance Corporation (FDIC) as having around $1 billion in assets. According to the Federal Reserve’s Small Business Credit Survey, community banks are the small business lender of choice.
Among the banks in South Florida in this category is Banesco USA, a banking institution with $1.3 billion in assets based in Coral Gables that serves the South Florida area with four business centers.
Banesco USA is known for bringing global expertise to local banking, providing a community bank attuned to the needs of a diverse and increasingly international community.
Today’s technology allows these smaller institutions to provide customers with state-of-the-art services on par with the bigger institutions but also boast a series of unique advantages. For example, Banesco USA can service clients with a wide range of personal and commercial needs and prides itself as being at the intersection of digital innovation, with a human touch.
It is not surprising then that according to the Federal Reserve’s Small Business Credit Survey, 73% of independent businesses that used community banks report they were satisfied with their overall experience, compared with 49% for large banks.
Given their size, community banks can often offer a more personalized service than their larger counterparts. They tend to have close ties to a community and a more intimate feel than national banks whose businesses tend towards large metropolitan areas and volume business. On the other hand, at a community bank, it is not unusual to work with the same people over many years, allowing them to get to know you and with that the ability to offer relevant services over time that align with your needs.
For example, when considering banks in South Florida, Banesco USA takes pride in offering Relationship Banking, providing customers a single point of service for a range of products and services.
Typically, community banks also have more flexibility in the decision-making process. This means that, for example, approval of a small business loan may take less time than one at a larger institution. Also, community banks in South Florida often are often better at taking local needs into consideration, as they’re leadership have first-hand knowledge of the local challenges and opportunities that small businesses have.
Headquartered in Coral Gables, Banesco USA’s team is right in the middle of the community they serve.
Community banks also may offer lower fees than big banks, but not always. Services like online bill paying, debit and credit cards checking accounts, savings accounts are often offered at a lower interest rate with better terms. Competitive services
Today, community banks can offer many of the same quality services and conveniences as larger banks like online and mobile banking. The difference is that these services are often tailored to the needs of the clients, making the banking experience better.
For example, Banesco’s USA digital offerings include:
Community banks are also community members, which means they tend to invest in the communities they serve. As part of the local economy, supporting small businesses, in particular, is of major importance. The Corporate Social Responsibilities (CSR) programs of a local bank will likely be focused on the needs of the community, rather than broader national causes. Therefore, supporting your local bank also translates to supporting your community.
According to the Federal Reserve Bank of New York, small businesses were also more likely to be approved for some form of a loan from community banks — 76%, compared to 58% at national banks.
Banesco’s USA CSR program is dedicated to local initiatives, giving not just money, but employees’ time, working hand in hand with the organizations they support. Some of the groups the bank currently works with are Voices for Children of Broward County, Kapow, St Jude Children Hospital and the Network for Teaching Entrepreneurship (NFTE).
In addition, Banesco has an integrated social responsibility strategy to address social, economic and environmental challenges in the area over the next five years through products and services, culture and operations. First-year efforts will focus on education and entrepreneurship. As part of this effort, the bank has partnered with Steps Up for Students, Cristo Rey Miami High School, and Junior Achievement.
Another example of how local banks work with communities is Banesco’s Corporate Work Study Program of Cristo Rey Miami High School. Through the program, students earn about half of their education, gain job experience, and realize the relevance of their education while providing real services to local businesses. Students work one day per week at Banesco to earn most of their tuition and gain valuable work experience for life after college.
Banking locally provides valuable advantages: personalized service, locally relevant products, and services, local decision making, and competitive rates.
Now that you learned more about banking locally; join our community at Banesco USA. You can reach one of our experienced personal bankers by calling +1 (888) 228-1597, or by visiting one of our convenient branch locations.
Poultry and Industrial Suppliers, INC located in Pineland, Miami shares their success story and how Banesco USA has been a consistent and devoted partner through their journey.
Poultry and Industrial Suppliers, INC was founded in 1984 to serve the poultry, swine industry in Latin America and the Caribbean. They have the support of world-renowned suppliers of their quality products and services such as: Chore-Time, Brock, PORCON, Sweet Manufacturing Company, Betco and many others that over the years have formed a team providing their customers “proven quality solutions.” For example, they are the Chore-Time distributors for Mexico, Central America, the Caribbean, Colombia, Venezuela and The Guyanas.
Banesco USA and Poultry Industrial Suppliers, INC have been together since 2013 and continue to work together towards accomplishing the company’s financial goals. Poultry and Industrial Suppliers shares how their relationship with Banesco USA has been helped them over the years. “Banesco is great, first of all because of their products, which I think are unique and second because of the people there—it’s the people who make the difference.” Explained one of Poultry and Industrial Suppliers executives.
The company explains how Banesco USA has two key components that makes their long-lasting partnership proactive and efficient: innovative products and services and personalized customer service. Personalized attention is hard to find nowadays, and they appreciate Banesco USA’s commitment, mentioning how they often come to their office to meet their clients personally. “I mean, a big bank isn’t going to do that for you, Banesco does” they explained. Not only does Banesco supports their finances, they pay attention to Poultry and Industrial Supplier’s clients.
Poultry and Industrial Suppliers, INC and Banesco USA continue working towards a big future together. Today, the company is grateful for having Banesco USA as a supportive and reliable partner.