No matter which state your business is in finding the right bank is one of the most important decisions that you’ll make. After all, the right bank understands what you need to thrive, offers the features that can achieve that, and helps you from making falling into any growth pitfalls.
For entrepreneurs who are looking to quickly grow their business, however, here are five banks that can do just that.
1. Silicon Valley Bank
Don’t let the name fool you. Silicon Valley Bank, or SVB, has locations across the U.S., and global offices in the U.K, Israel, China, and India, that has provided services specifically designed for startups for more more than 30 years. These services include cash management and investment solutions, online and mobile banking, and 409A valuations, M&A reporting and specialty valuations.
SVB also offers advice and resources for startups like blogs, webinars, and networking events so that you can connect with other important individuals in the startup world. As if that wasn’t enough some of these services they offer to startups include waived fees for the first year.
2. Square Capital
If you’re already using Square as a payment processor, then you can now take out a personalized small business loan out through the company. Launched in 2015, Square Capital focuses on helping businesses grow by providing enough funds to hire team members or purchase new equipment. Fees will amount to between 10% and 16% of the amount borrowed, with 10% of each transaction you process going back to the loan. So, for example, if you borrowed $10,000, the loan repayment amount would total $11,200.
Loans are automatically deposited to your bank account of you’re eligible to receive a loan.
3. Chase
As a part of of JPMorgan Chase & Co., Chase is one of the largest consumer and commercial banking institutions in the world. In fact, Chase serves around half of American households. With more than 5,300 branches and 15,500 ATMs nationwide, entrepreneurs shouldn’t have a problem finding a branch in their immediate location. Also, Chase is one of the most active banks when it comes to issuing loans.
But, that’s not what makes Chase worthy of list. Chase has one of the best online user interfaces, free business debit cards, mobile banking and allows remote deposit of checks, along with business solutions like standard business bank accounts, payment processing options, and credit cards. Chase also has a variety of business accounts depending on what stage your business is in. For example, the Total Business account is designed for growing businesses to help manage cash flow
4. Square 1 Bank
Not to be confused with the already mentioned payment processing company Square, Square 1 Bank opened in 2005 with “the goal of serving entrepreneurs and their investors.” That goal can be accomplished because this is a bank full of individuals who have experienced the entrepreneur lifestyle and understand your needs – which is why they also provide valuable advice. I would even say that if you’re in the early stages of your startup this is probably your best option since they are able to customize solutions to meet the specific needs of your growing company, along with providing various types of business accounts, collections, fraud prevention, and international banking.
Square 1 currently has 15 locations, which includes Los Angeles, San Francisco, Seattle, Austin, Denver, Chicago, Boston, New York, Washington D.C., and Atlanta.
5. U.S. Bank
While U.S. Bank doesn’t have any plans specifically created for startups it does offer 3 different packages for businesses. For example, the Silver Business Package offers 150 free transactions per statement cycle, $0.50 per transaction, a free card reader, mobile banking, $200 payroll credit, and preferred interest rates on equipment financing. And, you’re not required to have a minimum balance.
U.S. Bank is another bank that is extremely active when issuing loans and there are thousands of locations nationwide.
The Bottom Line
Regardless of the bank that you select, make sure that you look for banks that offer low-cost banking packages like no minimum balances, free debit card, free ACH transactions, and free online bill pay, along with additional features that meet your specific needs. That’s why you should consider visiting a smaller, local bank.
Finally, make sure that you start building your credit, improving your credit, and always keep your business and personal accounts separate.
