March 27, 2017
What to Look For In Services Provided By Commercial Banks
Services provided by commercial banks range from basic to utterly complex. If you’re looking for a bank for your business, you need to make sure it provides you with the entire range of services – and with the convenience you need.
What exactly are the services provided by commercial banks? Well, commercial bank services include checking accounts, savings or investment accounts, business loans, property loans, corporate credit card accounts and much more. You probably won’t need every service provided by commercial banks, but there are a few you’ll almost definitely need to keep your business running:
There are many services provided by commercial banks that fit under the “deposit services” umbrella. Deposit products are products that are liabilities on the bank’s books and include checking accounts, savings accounts, CDs, money market accounts and other similar banking products.
The most important thing business owners need to look for in deposit services offered by banks are interest rates (higher is better for deposit accounts), minimum balances (how much you’ll need to keep in the account at all times), ease of transfers/transactions (minimal restrictions on the number of transfers or transfer amounts is ideal) and term length for applicable services (like CDs).
Loan services provided by commercial banks are products that banks classify as assets on their books and include both short-term loans (like cash-flow loans, lines of credit and credit cards) and long-term loans (like commercial mortgages).
Business owners should consider a bank’s interest rates, loan terms offered and, maybe most importantly, pre-payment penalties and loan renewal terms. Often times, these factors are a give and take—if you have a low interest rate, you’ll probably have a shorter-term loan, so you’ll have to decide what is most beneficial to you.
Convenience products provided by commercial banks are also sometimes called the “miscellaneous” services. They include everything that makes your life as a business owner easier, but isn’t technically an account. Convenience products include online banking, deposit boxes and specialized services (like asset management and financial advice).
In today’s business world, technology and convenience banking are the most important factors to consider when looking at a bank’s service offerings. Services like online banking and mobile or remote check deposit will allow you to spend more time on your business and less time conducting administrative banking tasks.
As a business owner, it’s also important to find a bank with experienced and knowledgeable bankers who are willing to take the time to get to know you and your business’ needs. Your banker – if you’ve found the right banking partner – will recommend the best services for you and tailor them to your business.
Services provided by commercial banks can be instrumental to your business’ success so make sure that you, as a business owner, choose the right banking partner with the services your business requires.
For more information on how Revere can help your business, call 866-950-5784 or send us an email.
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