Last Updated on July 1, 2024 by admin
Adequate financing will always be the livewire of any going concern, it’s like oil propelling its continued existence amid operating in a competitive business environment. Just like in any normal business setting, there are some financial institutions that have taken it upon themselves to see to the continued existence of these firms, they are willing and ready to provide needed funds to sustain continued operations of small businesses, knowing fully well their value to any economy
It is pertinent to appreciate the effort and good job of one organization that has not relented over the years, it continued to act as the middleman between these financing banks and the small business outfits. Join me in appreciating the US Small Business Administration (SBA), the banks collaboration with SBA had no doubt made for a successful operation as far as financing is concerned, it had made life rosy for these small outlets, they now found a dependable ally as far as financing is concerned.
The best bank for your small business in the United States will depend on your specific needs and priorities. However, some banks consistently rank highly for their small business offerings:
Top Choices Based on Recent Reviews and Expert Opinions:
- Chase:A popular choice for small businesses, offering a variety of checking accounts, loans, credit cards, and merchant services. Their Business Complete Banking account is often recommended for its features and benefits.
Bank of America:Known for its extensive branch network and wide range of financial products, including various business checking accounts and loan options. They are also a Preferred SBA Lender, simplifying the process of obtaining SBA loans.
Read: Best Auto {Car} loan Rates in United states
Wells Fargo:Offers a comprehensive suite of banking products and services for small businesses, along with robust online banking tools. They are one of the most active SBA lenders in the U.S.
Other Notable Banks for Small Businesses:
- Bluevine:An online-only bank offering competitive interest rates on checking accounts and streamlined online banking experience.
Novo:Another online bank with no monthly fees and user-friendly mobile banking features.
NBKC Bank:Known for its free business checking account with unlimited transactions and no minimum balance requirements.
Also read: List of Best Credit Cards for Bad Credit in USA
Factors to Consider When Choosing a Bank:
- Fees: Compare monthly fees, transaction fees, and ATM fees.
- Interest rates: Look for competitive interest rates on checking and savings accounts.
- Loan options: Consider the types of loans available and the eligibility requirements.
- Online and mobile banking: Evaluate the convenience and features of online and mobile banking platforms.
- Branch network: Determine if having physical branches is important for your business needs.
- Customer service: Read reviews and consider the bank’s reputation for customer service.
Read: What is different between Secured loans vs Unsecured loans
Consumer Credit Unions
Known to have majority of locations in the city of Michigan, such body offers some exciting range of products that will in no small way further enhance the growth and stability of small businesses in the US. Its importance can never be underplayed, its merits are just simply outstanding. Such class of Union has the ability of making individuals and small business owners to get that needed funds at a faster timing than the regular banking system.
There has been this argument as to which will better serve the interest and aspirations of small businesses in the US, while some still felt regular banking will better meet the requirements of these set of business owners, the fact remained that Credit Unions can do more if carefully harnessed. Financial Experts that are well grounded in the areas of operating and running small businesses made it known that such Unions will better provide a fantastic Customer Service.
It was also argued that such Unions usually offers a much higher interest rates on what you keep with them, otherwise, called deposits, not forgetting very minimal rates on loans issued out, they felt is almost incomparable to that of banks. These are just parts of what small business situated in the US stand to gain
Read: List of Investment banks in United States
Part of the key questions that usually emanates from new small business in dire need of survival funds can be, Are membership of Credit Unions restricted?
The answer is not far-fetched, a good number of such Unions don’t restrict membership but has to conform to certain norms guiding the operation of such union, a very good example is limiting membership to a certain bond that should be clear to all, known as Field of Membership (FOM). Membership is usually founded among those living in specific areas or a particular line of trade or investment. All in all, Consumer Credit Union have contributed immensely to the development of small businesses in America
KeyBank
Ranked 25th largest in America, this bank is unarguably one of the numerous banks that continued to take survival of small businesses seriously, they are so concerned that they allocate a substantial part of their annual earnings to their expansion. KeyBank is a subsidiary of KeyCorp, it had its headquarter in Cleveland, seen as the real deal in the entirety city of Ohio, its origin dates back to when it was known as Commercial Bank of Albany, New York in 1825. Its potential customers range from retail traders to operators of small business outlets, not forgetting the big time investors and corporate bodies.
Among its wide range of service also includes operation of checking account holders, credit cards operations, insurance and loans of varying degrees
Its branches cuts across major cities in the United States, among the notable ones are; New Jersey, New York, Florida, Illinois, Iowa, Maine, Maryland, Delaware, Connecticut, Colorado, Washington DC, Virginia, Alaska, Oregon, Ohio, Pennsylvania, Idaho, Indiana, Rhode Island, Utah, Texas and a list of others. It’s on record that the bank has 1,197 branches and over 1,572 ATMs in the cities listed above
PNC Bank
Small businesses have never had it so good, no thanks to the wonderful services they enjoyed from PNB, it has been there for them and never relented over the years. History has it that the bank is a merger and coming together of two banks based in Pennsylvania, it all happened in 1983, the banks are Pittsburgh National Corporation and Provident National Corporation
Seen as one of the finest when it comes to checking, the bank made it a priority that small businesses had it smooth when it comes to clearing cheques and the likes. As at the last count, the bank has locations at about 2,481 points scattered across the US, with year 2017 projection estimating its staff strength to be 52,906. Its headquarter is situated at PNC Plaza, Pittsburgh, its total asset was pegged at US$380.768 billion, as at end of year 2017
The tower housing its headquarter was actually bought and later worked on to make for a spacious size for the gigantic tower, it can be easily located around fifth Avenue from one end and also from Wood street, from another end. Its height is estimated to be in the region of about 800,000 square feet (about 74,000m), it stood close to 33 stories (roughly 545 feet tall)
SunTrust Bank
Having its headquarter in Atlanta, the bank is quoted to be a principal subsidiary of SunTrust Inc, it’s on record that its most direct corporate parent came into being in 1891. It has over 1,400 branches as of September 2016, with over 2,160 ATMs scattered across key States in the South Eastern axis, not leaving out Washington DC.
Also seen as one of the major backbone of small business enterprise in America, the bank main operations revolves around deposits, involvement in trust and major investments, credit cards sorting at various level, involvement in mortgage banking and similar trends, massive lending targeted at key investment drive as presented by individuals and corporate concerns, with wealth management also as part of its key services.
Also read: What is good Credit score:How to get it and Factors that Affect Credit Scores
The bank is also considered as being one of the largest in modern day banking operations in America, its staff strength as at 2013 was put around 24,000. It battled a libel suit in 2014 based on some allegations that deals on shoddy handling of mortgage issues, the bank was compelled to pay $1.5 billion, a settlement was eventually arrived at and it ended up paying $968 million to the United States Government. It has been able to bounce back from that issue and also emerged as one of the top 20 banks in America
It’s also on record that SunTrust made it known its taking over BB&T for a whooping $28 billion, this occurred in year 2019, its revolves around an all-stock deals, thereby creating for the sixth largest lender in the history of American Banking. The deal eventually ended in December 2019, a particular trust firm known as Trust Financial Corporation came into being. Operations now went on separately but their operating systems remained merged.
You may also like: History and origin of banking
BBVA Bank
Known to be a subsidiary of Spanish Multinationals Banco Bilbao that was since the year 2007 and it has continued to pride itself among the leading banks spearheading the survival, growth and expansion of the operations of small businesses in the United States. Having its corporate headquarter in Birmingham, Alabama, its major point of operation are easily found in major cities of the US, they include; Colorado, Florida, California, Alabama, New-Mexico, Texas.
The bank was rated 39th largest as of June 2020, talking of its total assets, it pride itself as having one of the strongest financial base. Its franchise is easily traceable to its naming rights to the popular BBVA Stadium, which can easily be found at a soccer venue in Houston. It has been the major sponsor of the Birmingham Bowl, a spectacular football game held annually in the city of Birmingham
Frequently Asked Questions
Q1: Which bank is the absolute best for small businesses?
A: There’s no one-size-fits-all answer, as the best bank depends on your specific needs and priorities. Consider factors like fees, interest rates, loan options, online banking features, and customer service when making your decision.
Q2: What are some popular banks for small businesses?
A: Some of the most popular banks for small businesses include Chase, Bank of America, and Wells Fargo. These banks offer a wide range of products and services tailored to small businesses.
Q3: Are online-only banks a good option for small businesses?
A: Yes, online-only banks like Bluevine and Novo can be a great option for small businesses. They often offer competitive interest rates, lower fees, and user-friendly digital platforms. However, they may not have physical branches, which could be a drawback for some businesses.
Q4: What should I look for when choosing a bank for my small business?
A: Consider the following factors:
- Fees: Monthly maintenance fees, transaction fees, and ATM fees.
- Interest rates: Interest rates on checking and savings accounts, as well as loan rates.
- Loan options: Availability of various loan types, such as lines of credit, term loans, and SBA loans.
- Online and mobile banking: Ease of use, features, and mobile app capabilities.
- Customer service: Accessibility and helpfulness of customer support.
- Branch network: If having physical branches is important to you, consider the bank’s branch network.
Q5: How can I compare different banks for small businesses?
A: You can use online resources like Bankrate to compare different banks based on their offerings and fees. You can also read reviews and talk to other small business owners to get their recommendations.
Q6: Is it necessary to have a separate bank account for my small business?
A: Yes, it is highly recommended to separate your personal and business finances. It simplifies accounting, helps track expenses, and protects your personal assets in case of legal issues.
Q7: Can I get a business loan if I have a new business?
A: Yes, several banks offer loans for new businesses, including SBA loans, which are designed to support startups.
Q8: What is an SBA loan, and why should I consider it?
A: SBA loans are government-backed loans that often have lower down payments, longer repayment terms, and competitive interest rates compared to conventional loans. They can be a good option for small businesses that might not qualify for traditional financing.
