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Navigating Banking Issues as a Small Business

Small business owners often report that cash flow and reoccurring business costs are their top two financial challenges. Guidant Financial reports that in a 2019 Small Business Trends report, 33 percent of small business owners cited a lack of cash flow as their greatest business challenge.

When it comes to banking, there are plenty of obstacles for small businesses. As a rule, most banking issues are harder to overcome for small businesses than larger ones. Here are some of the most common issues facing small business banking:

Unnecessary Fees

Finding a banking option that fits your business isn’t always easy. You may find one that does not charge you monthly fees but requires other features that you don’t always use, like minimum balances or regular contributions. Other costly fees might include overdraft fees, transaction fees, or other added charges for using your account. Sadly, for many banks, these fees are the backbone of their profits.

Time can be Costly

The old cliché that ‘time is money’ is easy to understand for small businesses and entrepreneurs. As technology advances, the concept of physically going to the bank becomes more and more outdated. Business owners want to spend their time growing and running their business. While inconvenient banking practices and systems are on their way out, many banks still don’t offer the same online and mobile features for businesses as they do for personal accounts. This costs a business time and ultimately money.

Payment Transfers can be Slow

As we’ve stated, cash flow is one of the most important and top-of-mind issues facing businesses. A company needs the ability to navigate finances quickly between customers, vendors, and staff.  These transactions can take time, meaning delays, penalties, and other unnecessary discomforts.

Again, this is one area of banking that has seen new innovations in person-to-person transactions with apps like Venmo, PayPal, and Cash App. The business side of these transactions is adapting, but more slowly. More banks are embracing ACH transactions as a more immediate way to electronically transfer funds from one bank to another.

Banks Lacking Personal Relationships

Big banks get categorized as such for a reason. Often, a person or even an entire company is seen as a number within a large collection instead of an individual. Your company is seen in terms of transactions, not as a working business with goals and aspirations. Small businesses might especially struggle to see value in their relationship with their financial institution.

Banking Better at Falcon

At Falcon National Bank, we believe that you shouldn’t need to have a million dollars in your account to be treated well. A bank should value your business and work to help you reach your goals. We work to offer the same great services to our business customers as we do to personal banking accounts. This is because we believe all banking should be personal.

Falcon takes pride in being a go-to banking solution for small businesses. We’re much more than just a lender or the place where you have your checking account. Our Business Banking team provides comprehensive services to move your business forward– from loans and leasing to online business banking services and more. Contact one of our business banking specialists to learn more.