When it comes to the financial strategy of your business, selecting a bank is just as important as any other planning you may do.
However, finding the right bank to fit your needs can be challenging. From complicated fee structures to minimum balance requirements, real estate professionals who are in the beginning stages of their business can find it tough to make the best choice.
Here are four tips for choosing the best bank for your real estate business:
1. Research Your Current Bank
Take a look at their fees, minimum balance requirements, and benefits for business account holders. The goal is to make sure there are no minimum balance fees (ever!). If your current bank does charge these fees, ask your banker if they are willing to waive them since you will often be transferring money between accounts, which will cause for zero dollar balances. If your bank is unwilling to waive these fees, it may be time for you to switch banks – you want to work with a bank who is willing to work with your business!
However, if your current bank does not charge these fees, we recommend that you set up your additional checking and savings accounts with them to begin your financial planning process (we teach and use the Profit First system!).
2. Switch to a Community Bank or Credit Union
Community banks and credit unions are the best for business banking because they do not charge minimum balance fees, and oftentimes, they offer more advanced technology than larger institutions! These types of banks also provide a more personalized experience for their customers, which is perfect for supporting small businesses. With secure banking platforms and tons of flexibility, we always recommend our clients make the switch to a community bank or credit union.
Here is a great tool to find a community bank near you:
Here is a great tool to find a credit union near you:
This bank is one of our personal favorites:
3. Stay Firm on Your Banking Needs
Oftentimes, banks will convince you that your financial planning methods may not work (or are downright wrong!) and will work to mold you to their system. During your hunt for the perfect business bank, stay firm to your needs. Do not accept minimum balance fees or conform to a financial system that does not align to your business’ goals. Your bank should work with you, so if you are receiving pushback, it may be time to part ways.
4. Work with a Financial Planning Expert
If you are still having trouble deciding what bank will work best for your real estate business, talk to your financial planning expert on making the right choice. They know the strategy for your business and can research which institutions are willing to work with your goals (and which ones won’t!).
Ready to set up your business banking? Make sure you have your financial plan ready! Schedule a free consultation with our profit team so you can make the best move for your real estate business.