Business Checking Account: Tips for Small Businesses

When it comes to business checking accounts, it’s especially important for small companies to make smart decisions. Becoming a customer of a reputable financial institution helps lend credibility to your business. Plus, you have the opportunity to keep your personal accounts separate from your business accounts. By selecting the right banking partner, you can access many useful features and benefits.The choices of business checking accounts are wide and varied. You can comparison shop online or visit with a bank representative in person or over the phone. The benefit of talking with a banker is the help you’ll get in finding the perfectly matched account for your business. And, the banker may be able to help you with any additional financial needs you may have.Top Considerations for Small Business Checking AccountsFeatures can vary by account. Some accounts require no minimum balance and can be especially helpful for new companies trying to become established. Most accounts provide 24-hour access to funds, online banking, FDIC insurance on deposits, check cards and printed checks in different styles.To help you get the best business checking account, you should define exactly what your business needs. Then, you can find the banking solution that best meets those needs. You also need to consider working with a bank that can address your current and future requirements. Although you may just need a business checking account today, you will need additional services as your business becomes more established. Developing a good banking relationship early on can be very beneficial to your company’s future operations.Finally, make sure to understand and compare all of the features any particular business checking account offers. For instance, some accounts may offer a variety of additional features like payroll services, invoicing services and merchant accounts.Additional Features for Business Checking AccountsWhen deciding on a bank’s services, you may want to consider those banks that have a track record with your kind of business. A bank used to working with small businesses would be a good fit for a business just starting out. Banks with this focus understand the special needs of entrepreneurs and small businesses and can tailor solutions, terms and options accordingly.As mentioned earlier, you should also focus on banks that offer business checking accounts with some value-added services. You may find accounts with free unlimited check writing, free transfers, a free ATM card, free checks and other meaningful perqs.You also want to make sure you have online banking capability. Your business likely works with suppliers, vendors and clients online. So, you need online banking features too. Things like online billing, invoicing, tax services and more can be very convenient and useful for your small business.Just as it’s important to understand all the features your bank may offer with business checking accounts, you need to understand the associated fees too. Make sure you ask the right questions so you know about any restrictions as well as additional charges.A small business’ banking needs are drastically different from a Fortune 500 corporation. By finding the right bank, you’ll be able to simplify your financial management and have a partner to help you as your business grows.

The Benefits of Good Credit Control Procedures in a Small Business

Credit control is important in a business especially for small businesses. This means that every small business should ensure that it collects its outstanding invoices. Some small businesses in the UK let their uncollected invoices accumulate which ultimately affects their cash flow and also the performance of the general business. This problem can be attributed to poor credit control and lack of knowledge on the benefits of good credit control procedures in a small business.
One of the primary benefits of good credit procedures in a small business is that there will be sufficient funds to ensure that the business runs smoothly. The outstanding uncollected invoices mean that the business has some money which is deemed to be available but cannot be used in the operations of the business. This is especially a major issue in a small business which might not have enough funds to run the various operations without collecting the outstanding invoices as required. This makes it paramount for a business to ensure that it has set down good procedures of credit control so as to ensure the business runs smoothly with sufficient funds available.
Having good procedures is also important since it enables the business to know its reliable and trustworthy clients. This is because having good procedures in place will enable the business to explain to its various clients when and how the invoices will be collected. The reliable clients will keep to the payment terms and will ensure that the invoices are ready by the time stipulated by the credit control procedure. Through this the business can identify the clients that keep to their payment terms and therefore it becomes easier to extend credit to such clients since they keep their word.
Another major benefit of having a good credit control procedure in place is that the businesses are able to plan properly. This is because a small business with good control procedures will be able to know the money it has and the money to expect. As a result, the business will be able to budget even on the uncollected invoices since the laid down procedure will ensure that the outstanding invoices are collected on time. A business can even get outsourced providers of credit control services who will ensure that all the outstanding invoices are collected on time. Having outsourced providers will give the business time to concentrate on other issues regarding the growth of the business. Furthermore, some outsourced providers even pay for the uncollected invoices and then go ahead to collect the invoices after the stipulated dates. This gives the small business the assurance that funds will be available on time to run the various operations of the business.
Good credit control procedures that enhance collection of a businesses outstanding invoices are also beneficial because it allows a business to control credit limits. Small businesses in the UK should have a limit of the credit to be extended. This means that these businesses should have a limit of the outstanding invoices. When the outstanding invoices surpass the set limit, the business might not be able to extend credit to other clients. But with good credit control procedures the small businesses will be able to set limits and therefore be able to extend credit to other customers and also to those whose outstanding invoices have been collected. Therefore, it is paramount for a small business to have good credit control procedures in place which will enhance their collection of outstanding invoices.

Essential Criteria To Qualify For Small Business Loans

The small business loan is an enormous phenomenon through which business financing is made available to entrepreneurs. This is a very advanced funding system because of which the grant becomes easier not just for lenders but borrowers as well. But then borrowers need to have certain fundamental qualities to qualify for this entrepreneurial grant.

The basic qualities that are searched in business owners to qualify for the small business loans are as follows:

Business Owner’s Capacity: The capacity of an organization is fundamental for determining a businesses’ ability to make repayments in time. It is based on the repayment guarantee that business loans can be extended to entrepreneurs who are in need of funds. What bankers normally do is they review the cash flow system of an organization and based on it they determine whether an entrepreneur is eligible for the grant or not.

Entrepreneurs Character: The character of an individual is predetermining factor and it is adjudged by loan officers of a financial institution. What happens is loans are made by lenders to an aspirant if the latter is found to maintain good records and clean character. By character, it means a history of loan repayment along with interest, by the borrowers in due time. When the character of an entrepreneur is found unflinching then financers become more confident in forwarding grants to them.

Collateral Offered: Another method of repayment is by using collateral support. This can include equipment, real estate, account receivables, securities and inventory. Documents supporting the possession of such collaterals can also be deposited to lenders. This will inevitably make loan funds available to borrowers in need. The support drawn is colossal in nature and so organizations can really grow and become successful in their entrepreneurship goals. Small business guarantees offered are sometimes troubling but banks normally do not want to exercise their position by liquidating or seizing assets. In-fact, the banker himself works toward finding a payment solution in-case there is any default.

Capital Available: Business owners’ investment in a company sends a message to lenders about their ability to make repayments in time. Businesses that are unwilling to invest in their own company often are found to be rejected by banks too. This criteria is of real importance and lenders are found to make loan grants available to entrepreneurs without restrictions.

Business Condition: This is like reviewing a business’s condition and its capacity to expand and buy new equipments. Only an enterprise whose condition is good is able to sustain in the entrepreneurial world. It leads to an entrepreneurship that is not deformed or paralyzed by access work-related pressure. So, an organization whose condition is stable can find small business loan grant much easily compared to other businesses that are unstable.

The Small business loans induce growth to an organization and with the support business-entities get the right impetus to excel their organization in the path of success. It is possible for enterprises to see fund flow happening if they are found complying with the above mentioned criteria. Their applications are given due weight if they are found to live up to the expectations of the lenders.