India is a land of opportunities if used right. With more than 1 billion people residing in this big country, establishing a successful business around here is definitely going to shape up your future prospects. Yes, just like with any other countries in the world, you have to go through some legal formalities to ensure that your business hikes up pretty well. Right from covering some legal documentation to looking out for some trusted helping hand, you need everything for creating a successful base of your business. But, most importantly, you need monetary support. For that, you need to keep your eyes open for the banks for a startup business, ready to help you turn your big dreams into reality.
Basic things to consider:
Right from the early stages of your business, you are in dire need of a supportive bank to watch out for. Your needs might be simple or can focus on complex issues like a line of credit. So, finding the right bank to fit your needs is of utmost importance.
While trying to make a decision, it is mandatory to consider your current business needs and also its potential futuristic aspirations. It is mostly true if you are planning to stay in this market for long. Some of the smaller community banks are able to help small business owners with bulks of business loans. So, it is vital to establish a proper relationship with the bank to get monetary support whenever you need it.
Tips to follow:
So, you have finally made up your mind to head for the best banks and get some small business loans from their side. But first, you need to be aware of the Tips for Choose a bank and then end up establishing a professional relationship with the financial institution.
1. Get to know your needs:
Before you head for the financial institution, don’t forget to mention its needs. Why do you even need a bank in the first place? Are you in search for any kind of specialized service for helping you establish a small business? Get these points straight before heading for a bank. You can start your search online for the local banks, which will solely specialize in the small business based working capital, equipment loan and more.
- Remember to check the amount of cash flow moving in and out of business account. Upon starting this journey, you might have to head for a business name and register it with the state you are in before heading for business banking account.
- Certain banks are able to offer incentives for just depositing a certain amount. Others are going to offer you with services to make most of profit. In case you fail to have financial advisor to help with cash flow management and investment, it is always wise to move towards a bank.
- If you think that you need only a checking account at initial stages for managing payments from clients, then think twice. Focus on everything your business might need for the next 10 years. What if you are planning to expand in future and need a loan for that? Get to the banks offering you with these points well before finalizing your choice.
2. Working with online software:
Most of the banks these days are able to work with online software as needed. Some of those software examples are Freshbooks, Mint, Quickbooks, WaveAccounting, Kashoo and so much more. You need to focus on such banks for help. Your chosen financial center should help you reach through some records online and help you pay schedule and online payments. In case, your chosen banks fail to offer you with such services, it is time to look for another one. Remember to check the formats in which transactions are taking place.
3. 0% APR Period Intro:
Sometimes, go for the banks ready to offer you with 0% intro APR period based business credit card to be used in the market. So many of them are offering it, but Amex’s Blue Business Plus is the one to consider now. This intro period is going to be for 15 long months, which is the longest you have ever come across. However, after the period of 15 months of interest free sessions are over, you will end up with a variable APR sets at rate, which will depend on the creditworthiness. This rate is subject to vary in the market. So, do not forget to check the terms and conditions of issuers for the latest form of APR information.
4. Business based travel cards:
Sometimes, your business might not be restricted only to India. To gain more customers and clients, you may have to travel a lot. Whether you are traveling by yourself r asking an employee to cover it for you, the payment will go from the bank’s account. So, you will definitely need a business travel card from reliable banks to cover your monetary practices and needs. The Ink Business Preferred travel card from Chase is a reliable selection in this regard.
Due to its Stellar bonus plan, this card had gained quite some popularity among small business owners or start-up entrepreneurs, as well. Within the first three months, you need to spend a certain amount of money to get thousands of free points. In case, you are trying to use this card for your personal spending, then you can do that too.
5. Checking on with the accounts:
Before you head for the bank of your choice to cover business economic needs, make sure to check out the accounts first. The main aim is to separate business transactions right from the personal use. So, it is always a clever idea to have separate savings, checking and credit card use. You can use the cards for all kinds of business based transactions and only used for business related services.
- It is mandatory to contact a bank offering separate checking account under business name. You will be the authorized signer and owner of it. Here, the bank will first check your paper works. Make sure to get this account free by keeping a minimum balance.
- Remember to get hands on a master card or visa. It always does not have to be associated with the business based checking bank. Credit cards do have their sets of perks and will also have fees. So, make sure to go through all the options before getting hand into one.
- You might have to set saving accounts too. This account will be used for putting money aside, which you will probably need for paying business taxes later. This sector should also be free.
The banks, offering you with such options are the ones for you to try. Have a detailed chat with it first before relying on their services.
6. Comparing the features:
After you have settled for the points you want in a bank, start comparing the features of one bank from another in your area. Try searching for the banks, which will specialize in whatever things you need and try to give them a call for requesting specific information. Some of those options are fee structures, additional services and even their interest rates. Before you head for the meeting with bankers, try creating questions list after reviewing information available about the bank.
You can try checking out for online banks to access accounts easily. But, if face to face method is what suits you the most with easy deposit access and cash withdrawal services, then make way for a local bank with extensive ATM base. You can further try getting into institution, which will rebate some of the foreign based ATM fees. Always make sure to be realistic related to the requirements needed and then move for the right banks for starting a business in india and attending huge success later in future.
7. Cares about small business:
Before you head for the bank, ask the employees about their work under payee information exporting and also check the transaction amount and number. However, don’t just expect a lot in this regard. The best thing is that if you are not quite into lot of transactions on monthly scale, then it will hardly take few minutes to identify the payees and categories.
You are indeed in the lookout for a bank, which actually cares about small businesses. Most of the banks will do that for sure. In case, you are in doubt about present bank, do not forget to ask them. You have to see if they can make you feel good regarding opening business account with them. If they do, move towards that bank for financial help.
Get to the conclusion:
Following these important points will definitely help you make way for the right banks to fuel up your small businesses or start-up ventures. Yes, it is a time consuming task to go through all the available options and choosing one. But, if you can hold your horses, this service is definitely going to be a finest option for you anytime and for anyone.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.