A Banker – Must-have Advisor #5 for a New Business

A banker will be so much more than simply the person who you go to for money when your startup is up and running. This Professional Advisory Team member will support your business in many ways that are discussed in this Starting a Business series article.

The Banker – Your Advisory Team’s “Small Forward”

Financier

Not only do you need a power forward on your Dream Team, you also need a small forward. This team member is your banker or lender. And unless you are independently wealthy, you’ll probably eventually need some source of outside financing at the start-up of your business or during the course of your business’s life. Thus, you need to establish a connection with a local, regional, national, or even global lender, contingent upon your needs.

Service Provider

Depending on your physical proximity to the lender, it may be easier to keep your personal and business accounts within one bank. If you accept cash, you’ll need a place to make daily or weekly deposits. Furthermore, the stronger your relationship is with your banker, the more likely your banker is to offer you additional services with low fees and high dividends like:

• Personal checking and savings accounts.
• Business checking and savings accounts.
• Debit cards.
• Credit cards.
• Certificates of deposit.
• Money market accounts.
• Lines of credit.
• Mortgages.
• Commercial loans.
• Vehicle loans.
• Secure safety deposit boxes.
• Notary services.
• Credit card processing services for your business.

Fees Charged by the Bank

For many day-to-day deposit and transaction services, you won’t owe bankers or tellers fees. However, if your bank issues your credit cards, loans, lines of credit, or credit card processing services, you’ll likely owe set-up fees and pay interest rates on balances or balance transfers. You may also owe service fees for lock boxes or notary stamps. Your goal in having a banker on your advisory team, though, is to keep your fees and rates low and your dividends high.

Quick Links – A Startups’ Advisory Team Members:
Financial Planner | Certified Public Accountant | Lawyer | Insurance Agent | Banker | Business Coach