Business Banking
Small Business Bank the How’s and Why’s
When it comes to small-business banking, it’s all about location, relationships and no hassles. These are the main criteria small-business owners use to choose and stay their banks, according to a recent survey of St. Louis Small Business Monthly readers.
More than 115 entrepreneurs responded to three questions: Why did you choose your current bank? Why do you stay with your current bank? Why did you change to a new bank?
When asked why they chose a bank, location was the No. 1 response (53 responses). Entrepreneurs stay with their current banks when they have no banking problem (63 responses) and when their banker knows their name (55 responses).
When it comes to changing banks, entrepreneurs make the switch when they feel like no one cares (42 responses). (Note: See box below for complete results).
The following are some of the comments from entrepreneurs:
Reasons For Choosing A Bank
Brian McDermott
Cheetah Health Technologies, LLC
“I look for a bank that has a small town attitude/approach to doing business, with first class service and personal attention—irregardless of my bank balance. As corny as it sounds, every single time I call or email my bank it seems to me that they think I (and my business) am an important customer. I’ve never had this at any other bank.”
Michael Zambrana
Pangea, Inc.
“My bank put together a very innovative package of private money, high-risk money from an economic council and an SBA guarantee. The ‘banker,’ not the bank, was referred by a business acquaintance.”
Jeff Karpel
Karpel Computer Systems
“It is important to get things done with a phone call and a good banker on the other end, not by filling out a bunch of senseless forms and waiting for a clerk to call you back. That is what I look for in a bank.”
David M. Wysong
Allmail USA, Inc.
“The reason I’ve chosen my bank and stay with it is because the local bank officer stops to visit me several times per year, and the ‘sales’ staff also checks with me on a regular basis. Also, my bankers have talked up my business to other business owners gaining me new clients. My former bank of 11 years never did this. I used to go to the mountain. Now it seems that the mountain comes to me.”
Day Veerlapati
S2Tech
“I found that credit unions offer better pricing and better interest rates than commercial banks. I wasn’t comfortable at the thought of paying money for each check cleared and deposits placed in my account when I wanted to open a business account with a commercial bank. Business is all about making profit by increasing revenues and reducing expenses. Credit unions offer a great way to reduce expenses with their low pricing for services. Credit unions also pay better interest rates on checking and money management accounts!”
Sue Huber
Above All Personnel
“Understanding our business meant everything in our decision to select and stay with our banking choice.”
Marie A. Casey,
Casey Communications, Inc.
“I stay with my bank because my banker initiates efforts to better serve me and my business. She also introduces me to prospective clients with a hearty recommendation for our services.”
Dorris Burch
Optima Image Group
“Location is very important for me in choosing a bank. I want a bank that is located in the states I travel.”
Phyllis Weiss
Image Works Public Relations
“When I started my business, I did so without a loan. So costs of services were very important. I called every business bank and decided to use the one with the most free services. Ten years later, I am still with the same bank for that very reason. Another bank tried to woo me. Even though I had a personal relationship with a banker at the second bank and I knew they were excellent, they were still more expensive on a monthly basis. So I chose to remain with the bank I started out with.”
Jim Day
St. Louis Metro Voice
“In my case, I look for a bank that does not charge me to deposit and spend my own money. It’s bad enough that the federal, state (and in some cases local) governments, tax small businesses to death, but for a bank—which already makes money off my money once I deposit it—to charge you a fee every time you make a deposit, write a check or use your ATM card is highway robbery.”
Hank Epstein
The Quality Coach, LLC
“I want personal service. I don’t want to be treated according to some policy, but as a known quantity with integrity.”
Barry Tilson
Stan Gellman Graphic Design, Inc.
“We moved our offices 20 years ago and made a banking change for convenience. Since then the bank has been bought and sold twice, yet we have remained because of the people, our relationship and the service. I have had terrific service from our banker and have transacted numerous loans and other services. Though I am with a large institution, they treat me as a valued customer and friend.”
Phil Brumbaugh
Philip G. Brumbaugh CPA, CVA
“I think there are two primary considerations for selecting a bank. The first is—does the bank market to your size and type of business? Does it design its services and staff to serve your business? The second is—do you have a contact or referral to the bank so that you will have someone looking out for your interests? This person should be in the division that will deliver your services, such as the small business division. If he or she is not, you will soon be shuttled off to someone you don’t know. The smaller the bank, the less likely this will happen. If you don’t have a contact, use your network to find someone you feel comfortable with. You need a spokesperson in the bank that believes in you and will advocate your cause internally for things such as obtaining loans.
Joseph T. Eckelkamp
Eckelkamp & Associates, CPAs
“I chose my current bank for a combination of reasons, but the primary ones were location, cost of services such as electronic banking, and client relationships with officers at the bank. My prior bank was a community bank and I selected it almost solely based on the personal reputation and character of its founder. I wanted to work with a banker I had a great rapport with and who I knew and trusted.”
Why Have You Or Would You Change Banks?
Amy Comparato
jWeb New Media Design
“We were with a local bank for small business where we received personal attention and everyone knew us. As time went on and the bank grew, faces changed, fees increased and we became just another depositor. This is why we recently moved to a smaller, locally owned bank.”
Emily Williams
Williams Tile & Marble, Inc.
“I haven’t changed, but am considering it because of location and I also feel that no one cares if I am a customer or not. The neighborhood bank I started with 27 years ago is now a MEGA bank that has changed names three times. If our account has been assigned to a ‘personal banker,’ I do not know who that person is. If we need to complete a credit application, I don’t even know what name, address or phone number to use and have to call each time.”
Barbara Carnes
Carnes and Associates, Inc.
“I was pretty disappointed in my previous bank because they didn’t seem to know me or care to know anything about my business and my needs. I love my new bank! Why? Because they’re so customer-focused, and my banking rep not only knows me by name, she knows enough about my situation to cross-sell me on other bank services that I’m not aware of. That is a win-win!”
Eric Vanderhoef
Advanced Knowledge Management
“Personal service has nearly disappeared as the small and regional banks are bought out by larger banks. Having a relationship with a banker is key to my businesses. When some faceless company slaps service charges on accounts and restrictive covenants to the way local banks used to operate, I move my business. Currently, I am using credit unions due to the customer service and limited fees. I had one national bank tell me that they did not have coin counters anymore and if I wanted to deposit or convert coins to bills that I would need to roll the coins for them! In addition they told me that I was limited to three teller transactions a month or they would charge me a fee. This was the last time I had an account with a bank.”
Dan Brown
Tanner B’s Restaurants
“My previous bank was chosen because of location, but when they denied me a loan, as well as after 1 1/2 years of business and seeing them everyday, tellers still didn’t know my name and would ask me for ID to cash my own business checks, I realized that location is not always everything.”
Farzad Wafapoor
Akramedia, Inc.
“I am changing my bank because I have found another bank with free online banking and other free services.”
Janine Vires
River City Litho, Inc.
“I’m planning on changing banks because in 12 years of doing business, my bank has now decided to misspell my name, although I’ve tried to correct that problem (must have too many databases). Their customer service is not what it used to be. And, at the present location of my business, they do not have a branch that is convenient.”
Post a comment