Few business owners take full advantage of all the resources that banks provide. From lending money to providing notary services, banks are a valuable ally for any founder that hopes to grow their small business. Consider the following ways banks can help your business.
Small Business Loans
Small business owners often have a challenging time obtaining financing. With only 40% of businesses categorized as profitable, 30% as continually losing money, and another 30% as only breaking even, the majority of small businesses have to rely on other means of financing in order to stay afloat. One of the most effective ways for small businesses to get funding is with small business loans from a bank. Business owners that have good credit scores can easily apply for a small business loan from banks in their areas.
Small business owners often take on the task of doing everything themselves. However, trying to get a company off the ground while managing one’s finances isn’t particularly easy or beneficial. As only 50% of new companies survive the first year in business, small business owners need to make the right financial decisions at this critical time.
Business owners that want to make sure their companies are successful should consider financial counseling. Many banks provide low-cost or free services for business owners. With proper financial counseling, you’ll be able to avoid common pitfalls of business ownership like cash flow issues, mismanaged money, or other problems that would otherwise put your business in jeopardy.
It’s common for business owners to need their documents notarized. While a quick search on the internet can point you to a local notary, they’ll charge per document or per person depending on where you live. Heading to the bank can save you from having to pay a notary as many banks offer this service for free.
Business Checking Account
Founders that have officially registered their businesses need their taxes to reflect that. When filing business taxes, your personal and business transactions must be separate. Make this process easier by opening a separate business checking account. This way, you’ll be able to file your taxes properly. Additionally, having a separate account will make it easier to avoid using your business earnings for personal use.
Banks are more than a place to house your money. Keep this guide in mind as you consider all the ways banks can help grow your business.