As a former psychologist, investment banker with a 17-year career on Wall Street, and a business owner for over 25 years, I’ve lived and breathed the complexities of running a business. Choosing the best bank for your business is almost the first thing you must do when starting. From managing brick-and-mortar stores to scaling online ventures, I’ve faced the same challenges you do—navigating cash flow, finding the right financial partners, and making decisions that impact growth. Over the years, my entrepreneurial journey has given me a unique perspective on the critical role that choosing the right bank plays in a business’s success. Trust me, there is no banking panacea. Nothing is more frustrating when you keep bumping heads with your bank. At Sunwise Capital, we’ve used this experience to help over 86,000 small businesses secure the funding and financial partnerships they need to thrive. I understand that opening a business bank account isn’t just about convenience—it’s about creating a financial foundation that optimizes cash flow, reduces unnecessary fees, and positions your business for growth. With that in mind, I thought I’d share the 21 essential tips I’ve developed to guide you in making an informed decision that aligns with your business goals and sets you up for long-term success. Table of Contents Toggle What is the Best Bank for your business1. Assess the Bank’s Experience with Your IndustryWhy It Matters2. Look Beyond the Big NamesThe Advantage of Smaller Banks3. Investigate Industry-Specific Banking ProductsKey Products to Consider4. Understand Overdraft Protection PoliciesAvoid Hidden Fees5. Loan Turnaround Times MatterSpeed is Crucial6. Look for Online and Mobile Banking SolutionsConvenience at Your Fingertips7. Availability of Cash Flow Management ToolsStreamlined Financial Management8. Access to Relationship ManagersPersonalized Service9. Consider Business Credit CardsBenefits Beyond Transactions10. Be Mindful of Minimum Balance RequirementsFlexibility in Account Terms11. Look for International Banking OptionsGlobal Expansion Made Easier12. Small Business Program MembershipsMore Financing Opportunities13. Investigate Fraud Prevention FeaturesSecurity First14. Ensure Customer Service AccessibilityFast, Reliable Support15. Consider Early Deposit FeaturesCash Flow Flexibility16. Look for Payroll Services IntegrationSimplified Payroll Management17. Investigate the Costs of Additional ServicesAvoid Hidden Costs18. Assess Lending FlexibilityTailored Financing Solutions19. Investigate the Bank’s Community InvolvementCommunity-Based Benefits20. Research the Bank’s Stability and ReputationTrust in Your Bank21. BONUS Consider a Backup AccountBackup for StabilityConclusion: Choose the Right Bank for Your Business GrowthFAQs What is the Best Bank for your business Before I jump into the 21 tips, here are a few true stories that stick out in my mind. One of my first businesses was a check-cashing store, which I purchased. It was a successful business that operated for years before the owner sold it to me. He had a well-established banking relationship with a bank conveniently right across the street. After closing the sale, I went to the bank to introduce myself and to open a “new” account, which was a re-titling of the previous owner’s account. DENIED! Why? They said it was now a “new” business, and they were unfamiliar with it—nothing to do with me. How crazy is that? Long story short, we obviously needed a bank account as we were a “cash” business. Instead of getting the account approved by the branch right across the street, I found a regional manager of the same bank in Pennsylvania who was more than happy to continue the account. My second story now involves an online business I started back in the early 2000s. That’s important because the internet was still relatively new, and banks, I guess, didn’t realize that online companies could make money. Try explaining how an online business works to someone who doesn’t understand business in general and is now trying to understand how that works in “virtual” reality. Every time they brought in a new “relationship” manager to the branch, my account was flagged, and I had to go in and explain what I did all over again. Now I get it. This wasn’t a small account. It was a 7-figure account. But think about it. It’s not like I was the first company to have over one million dollars at a bank. Now, here is the crazy part of the story. I needed to get a document from the bank FedEx’d to me from NY (overnight). It was a critical document, and the bank said absolutely, no problem. When I went to the branch the next day to get the paperwork, they said it was not sent. Forget about the fact that I lost it in the lobby of a pretty busy branch. They added injury to insult by telling me that I still had to pay the $17 FedEx charge for a package I did not receive. I stormed out of the branch, livid, and went across the street to another national bank. I asked them for their wire instructions. I then walked back across the street to “my” bank and proceeded to wire 7-figures out of the branch to the new bank. All over a $17 charge. Like the scene in the movie “Pretty Women,” BIG MISTAKE – BIG – HUGE! Learn from my experiences below. 1. Assess the Bank’s Experience with Your Industry Not all banks are created equal. Choose a bank that understands the unique challenges your industry faces. Whether you’re in retail, technology, or manufacturing, the bank’s experience in your industry can be invaluable in providing tailored solutions. Why It Matters A bank specializing in your sector can offer relevant financial products and personalized advice, helping you easily navigate industry-specific challenges. 2. Look Beyond the Big Names While the big-name banks are well-known, they may not always offer the personalized service and flexibility that your business needs. Local community banks or credit unions can provide more attentive service, which can be a game-changer for small businesses. The Advantage of Smaller Banks These institutions tend to have fewer bureaucratic layers, which means faster decision-making and more customized solutions for your business. 3. Investigate Industry-Specific Banking Products Some banks offer specialized accounts or loan products tailored to your specific industry. This can include anything from equipment financing to supply chain management tools. Key Products to Consider Look for banks that offer products designed to support your industry’s cash flow cycles, which can improve operational efficiency and reduce financial stress. 4. Understand Overdraft Protection Policies Unexpected fees can be a nightmare for any business, especially when cash flow is tight. Make sure the bank you choose offers clear overdraft protection policies or alerts when balances are low. Avoid Hidden Fees Overdraft protection policies ensure you’re not hit with surprise charges, which can negatively impact your business’s bottom line. 5. Loan Turnaround Times Matter Time is money, especially in business. Find out how quickly the bank processes loan applications and disburses funds. A long delay could cost you more than just interest. Speed is Crucial A bank that offers fast processing and flexible loan terms can help you seize new opportunities without waiting weeks or months for approval. 6. Look for Online and Mobile Banking Solutions Ensure the bank’s online and mobile banking platforms are user-friendly and provide the necessary functionality. These digital tools should help you manage your accounts, pay bills, transfer funds, and perform other essential tasks. Convenience at Your Fingertips A well-designed digital banking platform will save you time and allow you to access your business’s financials anytime. 7. Availability of Cash Flow Management Tools Some banks offer integrated tools for managing cash flow, invoicing, and tracking expenses. These tools can be extremely helpful in ensuring your finances stay organized and under control. Streamlined Financial Management Look for a bank that offers features like automatic invoicing, payment tracking, and expense reports to keep your business’s finances in check. 8. Access to Relationship Managers A dedicated account manager can be invaluable, offering advice and ongoing support as your business grows. They act as a bridge between your company and the bank, ensuring your needs are met with expertise. Personalized Service Having a relationship manager who knows your business can help you avoid many entrepreneurs’ pitfalls in scaling their operations. 9. Consider Business Credit Cards Business credit cards with customizable spending controls, rewards programs, and other perks can be incredibly valuable for managing day-to-day expenses and building credit. Benefits Beyond Transactions Business credit cards can also provide rewards that help offset operational costs, so choose one that offers benefits relevant to your business. 10. Be Mindful of Minimum Balance Requirements Some banks require a high minimum balance to avoid monthly fees. This can be restrictive, especially if your business experiences fluctuating cash flow. Flexibility in Account Terms Choose a bank with reasonable minimum balance requirements or one that offers fee waivers based on your business’s activity level. 11. Look for International Banking Options If your business operates internationally, look for banks that offer multi-currency accounts, low-cost international wire transfers, and services to support your global transactions. Global Expansion Made Easier Access to international banking options can simplify cross-border operations and reduce costs associated with international payments. 12. Small Business Program Memberships Banks participating in programs like SBA lending often have better resources for small business owners. These programs can provide easier access to funding and more favorable loan terms. More Financing Opportunities Working with a bank that offers access to these programs increases your chances of getting the financing you need at competitive rates. 13. Investigate Fraud Prevention Features Make sure the bank you choose has robust fraud prevention features like two-factor authentication, transaction alerts, and fraud detection tools. Security First These tools ensure that your business’s finances are protected from potential threats and that you can respond quickly if something goes wrong. 14. Ensure Customer Service Accessibility Customer service is critical, especially during emergencies. Make sure the bank offers multiple ways to contact support (phone, chat, email) and has extended hours to accommodate your business needs. Fast, Reliable Support Good customer service can be a lifesaver during a crisis, so choose a bank that offers prompt, efficient service. 15. Consider Early Deposit Features If cash flow is tight, having the ability to deposit and access funds earlier than traditional schedules can help you stay on top of your financial obligations. Cash Flow Flexibility This feature can be beneficial if your business operates on a tight cash flow cycle or relies on customer payments that vary in timing. 16. Look for Payroll Services Integration Banks that integrate with payroll services can save time and reduce the chances of errors in tax filings and compliance. Simplified Payroll Management Look for banks that offer payroll solutions that sync with your accounting software for a seamless process. 17. Investigate the Costs of Additional Services Beyond basic banking services, be aware of any additional fees associated with wire transfers, account statements, and other banking services. Avoid Hidden Costs Make sure you fully understand any additional fees that may apply to your account to avoid unpleasant surprises. 18. Assess Lending Flexibility Does the bank offer various types of financing, such as short-term loans, equipment financing, or lines of credit? Choose a bank that offers flexible lending options to meet your business’s future needs. Tailored Financing Solutions A bank that offers a variety of loan products ensures that you’ll be able to find the right financing solution when your business requires it. 19. Investigate the Bank’s Community Involvement Banks that are actively involved in their local communities may offer opportunities for grants, sponsorships, or other support for local businesses. Community-Based Benefits Community involvement indicates that the bank is interested in helping local businesses succeed. 20. Research the Bank’s Stability and Reputation Before committing, research the bank’s financial stability and reputation. This can be done by checking reviews, financial reports, and agency ratings. Trust in Your Bank Knowing that your business’s funds are in good hands, a stable and reputable bank will give you peace of mind. 21. BONUS Consider a Backup Account No bank is perfect. Having a backup account with another institution can be smart, especially when relationship managers frequently change. This backup account can help your business stay stable if you need to switch banks. Backup for Stability Lenders prefer businesses that have a long-standing banking relationship. A backup account can help maintain financial continuity if your primary bank becomes unreliable. Conclusion: Choose the Right Bank for Your Business Growth Choosing the right bank for your business is crucial for long-term success. Considering these 21 tips, you’ll be better equipped to make an informed decision supporting your business’s unique needs. Whether you’re looking for flexible loan products, efficient cash flow management tools, or community involvement, the right bank will be a strategic partner in your growth. FAQs How do I know if a bank understands my industry? Research the bank’s experience in your industry or look for testimonials from businesses similar to yours. What should I do if I need access to international banking services? Choose a bank that offers multi-currency accounts or specialized services for international wire transfers. What types of loan products should I look for? Consider short-term loans, equipment financing, or revolving lines of credit based on your business’s needs. Are there any hidden fees I should watch out for? Yes, always investigate additional service fees for wire transfers, account maintenance, and other banking services to avoid unexpected costs. What’s the benefit of having a backup business account? A backup account ensures you have financial stability if you ever need to switch banks due to issues with your primary institution.
