5 Key Pointers When Choosing A Business Bank Account

One of the most important decisions companies have to make when starting up or while in the course of running their operations is which bank to collaborate with to enable them to process their transactions seamlessly. This runs true across organizations of whichever size – start-ups, small-medium sized or big corporates.

Before shopping around for a bank, set your expectations on what you want from your bankers first – before the bank gets to know you, know yourself first! Here, you could think of the number of transactions you would have to run on a daily basis or the number of employees on your payroll for monthly payroll processing.

You could also consider whether you will need an overdraft facility for your working capital needs just in case you find yourself running out of cash or whether the bank offers short-investment channels when you do not have an immediate use for the cash in your bank account.

How flexible do you want the bank’s payment channels to be? Would you like an online platform or would the old school systems still work for you?

Here are a few pointers that can act as a guide to choosing your perfect banking partner and save you the hustle of having to move from one bank to another:

Customer Service

Customer service would be on the top of my list when considering which bank I would like to open an account with. We all have a feel of how emotionally draining and time-consuming poor customer service can be.

Most banks will assign you a customer relationship officer who will act as a liaison between you and the bank. Choose a bank that is willing and ready to go the extra mile to serve you better.

Bank Fees

Be on the lookout for banks that charge you extraordinarily high bank fees. This could be ledger fees, transaction fees, cash handling fees, etc.

In Kenya, the government imposes an excise levy of 20 percent on fees charged by financial institutions. This increases the fees charged by the bank by the same amount. If it is in your power to reduce these fees, please avoid them. Every coin counts!

Product Offering

Banks offer an array of products. These include different types of accounts such as current accounts, savings accounts & business accounts, credit & debit cards, insurance, overdraft facilities & loans.

The different account types offered by the bank serve different purposes and I would recommend that you choose a business account that serves your business’ needs.

Most often than not, most of the business accounts are tailor-made to serve your business depending on your company’s size. Another important factor to consider is whether the bank you choose is open to lending your business to support your company’s growth.

There’s a caveat to your bank offering you a loan though – you have to be a creditworthy client for them to consider you for the loan. With reference to the Latin phrase “Quid pro quo” go for that bank that is open to returning the favor.

Accessibility of the bank

Choose a bank that is easily accessible to your business both geographically and in terms of communication. You will have instances where you will have to make trips to your bank and believe me, you do not want to spend a lot of time moving from one part of the city to another.

Choose a bank whose communication channels are open and swift.

The reputation of the bank

Always listen to what other clients are saying about your prospective bank. Collect as many testimonials as you can to enable you to make an informed decision. You can never go wrong with listening from current or former clients of that prospective bank as they have firsthand experience of the service offered by that bank you want to pursue.

There are millions of bank accounts to choose from and it is important to take your time in choosing an account that you will be comfortable, as a business, to keep your money. The importance of choosing a bank should not be underestimated.

Once you have identified what you want with a bank account, go through the different bank options and talk to a representative of each bank on their services then make your decision on the most favorable one.

This article was written by Esther Chege, a Finance Consultant at Zenuha. You can reach her on info@zenuha.com