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3 Banking Mistakes That Could Cost Your Business Money in 2020


1. Choosing the wrong bank to partner with for your business.

Banks, just like businesses, have a "niche" and focus their products and services on catering to specific audiences. You wouldn't take your Bentley to Walmart for service, just like you shouldn't let just any bank handle your business's financial needs. Some banks specialize in providing services for consumers with personal banking needs, while others focus on servicing businesses large and small. It's important to know there is no "one-size-fits-all" loan program that works for every business. 

It's essential to find the right bank that understands your business is your livelihood. A suitable commercial lender will learn your short term and long-term business goals and provide strategic financial guidance for the future of your business. He or she will place the best interest of your business at the forefront of the relationship. Like any great business partner, your commercial banker should be available to take your calls and meet with you as needed. 

The right bank will also be able to provide a wide range of solutions for your operation, including interest-bearing deposit accounts, customized lending solutions, credit card processing, and other cash management services, along with employer services like payroll and retirement plans.



2.       Not reviewing your monthly analysis statement.

When is the last time you went through your monthly analysis statement to see what your bank is charging you for and how much those services cost? Have you ever? Charges and fees imposed by banks can vary. For example, some banks will charge for certain services while other banks may offer the same service for free. Unfortunately, your bank could potentially be charging you for things you are unaware of. Small service or processing fees and late charges can add up and are taking away from your bottom line. 

It’s best to never assume your monthly statements are correct. Mistakes are easily made when dealing with a high volume of accounts and might go unnoticed. It's a good idea to make sure no duplicate transactions or recurring payments are being deducted from the account that you did not authorize. On the other hand, payments not going through could also cost you more than you realize, not just in late fees. Most of the time, scheduled payments post without any issues, but unforeseen circumstances like a new system or a new card number could put you at risk of having your services canceled. 

3.       Not utilizing the technology your bank offers.

Time is money, and your time is valuable. Choosing a bank that offers convenient features and apps like remote deposit, online bill-pay and payment scheduling allows you to allot your attention where it's needed most, running your business. 

The right bank for your business will also recognize the importance of providing your customers with multiple payment options. A business-friendly bank will be able to suggest and deliver competitively priced credit card processing solutions that work best for your business. This point-of-sale solution should do more than accept payments; it should help you manage your business too. This two - in - one solution will not only save you money in 2020 – it will increase your overall production and provide a convenient method of payment for your customers. 

The bank you choose to partner with should also be actively working with providers to offer you the best in processing and protection software. Make sure to select a bank with fraud protection tools such as Positive Pay, which verifies the checks you write. 

While keeping this information in mind, it's important to remember that you are not just choosing a bank, you're also choosing a business and financial partner. 


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