If you’re a business owner looking for a loan to grow your business or develop a close business relationship with your banker, choosing the right bank is an important decision. Generally, you have two choices: a large bank that boasts locations across the nation and has a strong focus on larger businesses and accounts, or one with local headquarters. Although a large network of banking centers throughout the nation provides convenience for large businesses, for small businesses, there are benefits of banking with a community bank.
1. Enjoy the Personal Touch
Your money and cash flow is important to you, so trusting just anyone with it can be difficult. When you open a checking account at a community bank, however, you’ll be able to form close and intimate relationships with the people in charge of your money. Because community banks depend on fewer customers than the mega-banks, there is often a much greater commitment to good communication and customer service. And, many community banks offer the same benefits — such as mobile deposits and payment systems, as the biggest banks in the country. There’s no need to get lost in a menu when you call the bank. Community bankers answer their own phones.
2. More Flexibility
Community banks have notoriously good relationships with small business owners whereas large banks have a stronger focus on larger businesses. If you need a loan to finance new equipment, inventory or commercial real estate, although there are specific lending and regulatory guidelines every bank has to adhere to, you may not have to deal with some of the more rigid rules and restrictions you find in a larger bank. Why? Because community bankers get to know you and how your business operates, which means they don’t have a one-process-fits-all philosophy. Not only will a community bank take more time to determine the best option for your specific needs, they sometimes offer better interest rates and lower fees.
3. Community Focus
Local banks are interested in supporting Main Street, not Wall Street. This is precisely why customers tend to be more loyal to community banks. When the bank is focused on local ownership, local control, and local decision-making, local customers are always more appreciated.
The type of bank you choose depends entirely on your business’ needs. If you own a large company, a community bank may not be able to provide some of the more sophisticated services required. If you’re a small business owner, however, the unique and personalized banking services offered by a local bank could make your banking experience the best it can be.
Have more questions about the benefits of banking with a community bank? Contact First Bank of the Palm Beaches today!