Expanding Your Small Business with Banking and Insurance Solutions

Five Banking Services Every Small Business Should Have

Once you find a banker, you may be wondering what services to ask about when you meet with them. Here are my five essentials I tell every business owner they should have no matter where they are in their journey:

1. Bank accounts that are separate from your personal accounts. It is essential to keep your personal and business finances separated for several reasons but tracking expenditures and managing these finances are key reasons. Having an accurate picture of each is essential to understanding your cash flow. This will make your accounting more efficient, especially at tax time.
2. Efficient online and mobile banking tools. These tools go beyond just checking your balances. They can also help you to set goals, approve transactions while you're on the go, and set up entitlements for others who may need to help you with your finances. For example, if you have an outside bookkeeper, you can 'entitle' or set up permissions for this individual to log into your accounts and only see what they need to see.
3. Fraud prevention tools. If you think that your business is too small to worry about fraud, think again. Criminals often look for the most vulnerable targets to take advantage of and if your account information and transactions aren't secure, this makes your business a prime target. It's also important to understand that banks are not required by law to reimburse businesses for lost funds as they are consumers in the case of fraud, so taking steps to ensure you protect your banking information is important to your bottom line.
4. Streamline your payment system. There are tools available from many banks that can help you make payments more efficiently and report on invoices with ease. You want to spend time running your business, not tracking and making payments all day. A modern system will help you take payments, record them, and report on them. Again, this becomes even more important at tax time - and your accountant will thank you.
5. Access to a good line of credit. As a business owner, you know that expenses come up at any time - the copier may break, or you may need to invest in a new system to run your business more efficiently. A good line of credit can help you access funds faster when you need them. When you establish a relationship with a banker who can make local decisions (i.e., without calling an unknown), you can take care of those needs any time, from anywhere.

Unlocking the Benefits of Small Business Banking Solutions

How do you find these tools and the right bank? Ask around! There are several bankers on the Peninsula who have experience in small business banking, and some even have experience in niche markets. With the right banker, you will have access to tools and a professional with experience to help you answer your questions - even when it comes to updating your business plan. Plus, as you grow your business, you'll need access to capital so you can do things like purchase inventory, buy equipment for your office, or even expand, which require different types of lending options. A dedicated banker can help you walk through options so you can understand the advantages and disadvantages that each one may present.

Strengthening Your Financial Footprint with a Solid Business Credit Profile

Establishing a robust business credit profile is vital for the growth of your small business. It not only enhances your chances of securing loans and credit cards but also enables you to negotiate better terms and interest rates. Whether it's separating your personal and business finances, registering your business, paying your bills on time, or establishing vendor credit, we've got insights to help you strengthen your business credit profile. At TowneBank, we offer a range of financial solutions to meet your small business banking needs. Connect with us today to explore how we can assist you in building a solid business credit profile.

Navigating the World of Small Business Insurance

As I mentioned earlier in this article, business insurance is a vital component of your financial picture. Understanding the different types of small business insurance can be overwhelming, but fear not; I'm here to help you navigate this complex terrain. Here are some insurance coverages that are important for small businesses. Of course, there are others that should be considered:

1. Property and liability insurance: This type of insurance protects you in the event of fire, flood, and some natural disasters, as well as judgments for accidents on your property or involving your employees. A major advantage to this coverage is that the provider is obligated to provide defense counsel should you be sued.
2. Workers' compensation: This insurance protects employers from lawsuits for most on-the-job injuries. It covers medical expenses, lost wages, permanent disability payments, legal defense costs and death benefits. This insurance is typically required for businesses by most states, but each differs in its requirements.
3. Employee Health, Life, and Disability Insurance: You may choose to offer health insurance, life insurance, or disability insurance to your employees. Whether or not this is part of your employment package depends on several considerations, one being affordability. A benefits consultant can help you walk through all of the intricacies of benefits plans should this be an avenue you wish to explore.
4. Business Interruption: This is an insurance policy that can protect you if there is a temporary business closure in the event of a fire or other circumstances. Most business interruption policies reimburse the firm for lost net profits and ongoing expenses.
5. Vehicle Insurance: A vehicle insurance policy is different from a personal one and can protect you if you or an employee has an accident while driving a company vehicle.

There are several other insurance policies that business owners should consider with varying levels of priority. An insurance professional can help you with the right coverage you need depending on the size of your business and your industry. Throughout my years of working in banking, I have developed a working relationship with a group of professionals from Towne Insurance and often have joint meetings with members to ensure that they are covered for both banking and insurance.

How to Get Started?

Finding the right business banker is important to setting your business up for success. There are many options available, and while I hope that all business owners will consider calling someone at TowneBank, there may be other banks that are a better fit for you. Here are some questions to ask yourself when making your choice: 

1. How long has the bank been open? 
2. Is the bank FDIC insured? 
3. What experience does the banker have with your industry? 
4. What are the fees you may incur for certain services? 
5. If you are taking advantage of an introductory offer, what happens when the offer ends? 
6. Can you openly communicate with the banker and are they able to educate you on the ins and outs of financial services that are best for your small business? 
7. Can you establish a sense of trust with the banker and the financial institution? 
8. Are there others in your industry that use the same bank? Ask your banker for examples of customer stories and take time to review them. 

I personally love helping small businesses get established and watching them grow. If you need help choosing financial services to help your business thrive, give us a call at TowneBank.