What is the Best Bank for a Small Business? Surprise! It Might Not Be a Bank at All
April 26, 2021
April 26, 2021
Small businesses know that having a strong financial partner can help set them on the road to success. That’s because there’s almost nothing as important to your business as your cash flow and growth.
If you are wondering about the best bank for your small business, it may surprise you that the answer may be not be a bank at all. Of course, you definitely need to keep your money somewhere safe, but you might want to consider a credit union instead of a bank. Here is why a credit union might be right for your needs.
1. A credit union is usually smaller than a bank, which can mean better service.
While most banks tout their service, sometimes it is just not possible for them to be as responsive as a local credit union. That’s because especially with a big national bank, the decision making is often centralized in another location, which means the local personnel may not have the authority to make decisions.
And while every institution is different, you might find it harder to talk to contact the person you need, when you need them. (They might even charge you a fee to do so, depending on what type of account you have.) A credit union, on the other hand, exists to make sure its members are having the experience they need and deserve. Our goal is to build relationships that will endure for the long run.
2. A credit union offers all the key products and services a bank does.
While you might assume banks are the first to pioneer some advances and have a larger suite of services, credit unions are on par. Well, we can really only speak for ourselves, but our clients assure us we provide everything a larger bank would, such as a robust mobile banking app, an extensive network of ATMs (which some people prefer over a bank’s offering because you don’t have to search for the bank-branded machine to avoid surcharges), branches close to where they live and work, business credit cards that make their lives easier and a variety of loan products that meet their needs.
We also offer a host of additional services and resources for your business, like cash management, payroll and HR services and merchant services, as well as more personal needs, like trust and estate planning, retirement planning and more.
And while you might wonder if your money is safe, given that bank deposits are insured by the FDIC up to $250,000, you can rest easy knowing that at a credit union, you’ll receive the same $250,000 amount of insurance from the National Credit Union Administration (NCUA). In fact, based on physical footprint and available technology, you would be hard pressed to find an area where credit unions fall short.
3. A credit union has lower fees and rates.
Did you know that credit unions are not-for-profits? As a member-owned entity, we aim to provide value to our Members, rather than a paid board of directors. This means that while some banks might tend to nickel and dime you with onerous fees, a credit union works to keep these fees low – in order to boost your balance sheet. In addition, you might find lower loan rates and higher savings rates, all which help your business grow.
4. A credit union has deep local knowledge.
As a member of your local community, employees of a credit union understand their regions' unique characteristics. Valley Strong prides ourselves in knowing what is going on in the communities we serve and helping our Members maximize their business opportunities. This local knowledge is vital to choosing the right products for your business today, and as you grow.
While banks and credit unions can both be viable options for your small business, be sure to take the time to research what is best for your business.
Contact Valley Strong Credit Union today to talk with a specialized business banker about the benefits of opening a business account at a local credit union that has its members’ interests at heart.