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Which Financial Services Does Your Small Business Need?

Next time you are looking for a new bank or financial services provider, consider making a list of all the services your business requires. Then, select your bank or other firm according to the best match for your needs.

This article by Julie Rains for the OPEN Forum lists these transactions to consider:

Banking_servicesReceiving Customer Payments: Consider how you receive payments and the steps to convert receipts into cash.

  • Forms of payment accepted
  • Methods of accepting payments
  • Number of transactions
  • Dollar amount of transactions
  • Speed, ease and price of settling transactions

Making Vendor Payments: Consider how you pay vendors and what you require for timely and accurate payments.

  • Forms of payment accepted by vendors
  • Timing of payments
  • Purchase controls

Managing Cash Position and Growth: Consider your existing situation, plus imagine ideal scenarios for managing cash position now and cash needs for growth.

  • Funding for day-to-day operations
  • Supporting systems
  • Funding for growth

After you have defined your needs, search for solutions.

  • You may turn to your local branch of a large bank to provide all your financial services. Perhaps a small-business bank account and charge card is all you need. Or, if you are engaged in global trade and have multiple locations, a commercial account with treasury management, international and credit services may be more appropriate.
  • You might consider a basic account with a local bank or credit union, and arrange for more complex services with third-party providers (such as accepting e-checks or managing payroll).
  • Finally, you may find that non-traditional sources of financial services may suit your requirements. For example, instead of applying for a business loan to expand your business, you might obtain funds from customers for equipment purchases or a crowdfunding site for a special project.

To read the full article, click here.

You might also enjoy these related posts from the DisTribute blog:

Ten Questions to Find the Right Bank for Your Business

Community Banks: An Asset for Small Business

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