Puget Sound Business Journal (Seattle):

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Business owners, in turn, shoulxd be just as thorough when it comes to choosing acommerciakl bank. "When you go into a bank to open an accounty or take outa loan, you are in sensr interviewing the bank just as the bank is interviewin g you," says James Ballentine, director of economic development for the American Bankerw Association ( ). "So you shouldr look to find what is most convenientg for you as it relates to the type ofbusinesa you're in." Since time can be nearlyt as valuable as money for some business owners, the bottom line shouldc not always be the top priority. "You're lookin for the best rates youcan obviously, but also for the convenience," Ballentinde says.
"If you're constantly in the bank makingvdaily deposits, you may a need a bank that is in closw proximity to your business. But if you'rde a low-transaction business, maybe a bank that is not as close wouldn't be a problem for you. If you can work on-line, maybe a bank that offers that type of service wouldr be betterfor you. "You're really lookingg for a bank to fit your as opposed to the othereway around." It is important to understand exactly what those needs are in advance, and to stay focused on thosee priorities when choosing a bank.
Michael district director with the Small BusinessAdministration ( ), says bankes can offer services that seem intriguing, but actually are of little use to a specificc business. He says it is better to find a bank that best meetw yourcurrent needs, and then make any necessaru changes as your business evolves. "A lot of timees people get caught up in the fact that a certainn bank will offer a lotof credit," Rickas says. "That's great, but do you reallyt need that much money?
If you don't, then you migh be able to find a bank that offerx a smaller line with morefavorable "So try to match your current needs with a A lot of times people will say, 'I'm going to sign with a big because I have big plans for the future and I'm goingf to grow and grow.' That's all fine and But it's not like you get marrie d to a bank and you have to stay with them the rest of your If your needs outgrow your bank, then just change But in the interim, you need to really look for the bank that'e going to offer the best deal for you rightf now." The National Federation of Independentr Business (www.nfib.
com) says there are several questions business-ownersa should ask before choosing a commerciap bank, including: * Does the bank offeer special accounts for small businesses? If the words "small business " are nowhere to be found in the bank's then it's probably not the bank for you. * How personalizec is the service? Conduct fact-to-face, fact-gatherinb interviews with the banksw you're considering and see how enthusiastic and personablee therepresentatives appear. Are the fees reasonable? While most business accountsw have some sort of fees attacheeto them, make sure you do enouggh comparison shopping to get the best deal.
"The most commonj mistake people make is they go with the firsg bankthey find," says the ABA's Ballentine. "Thay can be a mistake, because that bank may not be as activw inthe small-business market as another bank is. That' why you want to shop arounde and go to at least three Even though all banks offer accountsand services, some will be more activde in certain areas and provide a little different producgt that would be better for you or a particularr business." Ricks says the Smalol Business Administration has a number of business-counselinhg centers throughout the country that offer free advice.
A list of thesre centers can be foundxat "They can work with you and possiblg point you in the right direction," Ricks says. "There's a bank out there that'z right for you. People don't shop aroune enough. Just because one bank says 'no' doesn't mean you have to There are plenty of other lending optionsout there.