Are your clients with the right bank?

I am sure that most of us have spent a considerable amount of time over the last 12 months talking to banks about our clients needs.

Has it occurred to you that perhaps the bank that your client is banking with was wrong to start with and that by careful selection at the outset there could have been a greater level of tolerance and understanding now.  When my clients look to open a either a new bank account for their new business or are looking to move from their existing banker I ask them to consider the following ten factors:

1. What services does the bank offer? All banks will offer current account and deposit accounts. However if for instance your client is looking to import goods from abroad does the bank offer a letter of credit facility; or if the client is an estate agent does the bank offer a client account facility etc.
2. Does the bank offer a dedicated account management team? This is especially important if the client is going to need to rely upon the bank regularly.
3. What are the standard charges for the various services? Most banks offer free banking in the first year. If the client is looking to take an overdraft they should consider the set up fees and ongoing fees for this type of facility. If they are looking at making many international payments they should consider these charges etc.
4. They should consider how charges are levied.  For instance is it a one off charge or is it based on each transaction.
5. They should consider if additional charges are likely to be levied ie if overdraft levels are exceeded.
6. Are there any branches near to your client’s premises? This can be especially helpful if they need to deposit cheques or cash regularly.
7. Is your bank offering any special offers to encourage your client to open the account? Some banks offer for instant offer access to business software at reduced prices.
8. Does the bank have any specialism in the area of business your client operates? Some banks have specialist teams in say property development; or retail and being looked after within these teams should mean that the account management team should understand your client’s business.
9. Consider if the bank’s ethics matter to your client. For some businesses it is important that the bank has the right ethics, religious, or investment policies.
10. Consider if any of the business bank managers that you know would be able to assist your client. Over the years you will have built up some good relationships with bank managers.

For more information about business banking visit wisteria or wisteriaformations