Business Banking

March 11, 2023

by a searcher from United States Naval Academy in Johnson City, TN, USA

What are the best options out there for business banking? My local guys have all the convenient features but a long list of petty fees, want to charge high interest on loans, but don't have basic accounts that bear interest. I don't think they should be able to have it both ways. Is this the new normal or am I jus not looking hard enough?

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Reply by a lender
from Wilfrid Laurier University in Toronto, ON, Canada

I can say this is true for the Canadian banking landscape, where most current bank accounts will bear next to zero interest. If your business can show it has at least a couple million dollars to be parked in a bank account you will be able to qualify and/or negotiate for higher interest bearing accounts. For this you'll have to convince your banker the funds won't be stripped out tomorrow otherwise they won't gain anything from offering you the higher interest rate. On the lending side, interest rates are always priced to risk. If you have a company with strong fundamentals and sustainable EBITDA and not overly leveraged you will always have room to negotiate.

Reply by a searcher
from California State Polytechnic University in San Diego, CA, USA

Well, stay away from SVB....But seriously, depends on your needs and size. I point a lot of small businesses to Relay since it's online, tech-enabled, and free. There are local banks that have a lending arm you should probably cozy up to. I've had to deal with some lacking smaller and regional banks because they were able to fund deals more mainstream banks would not. Shout out to ^redacted‌ at Live Oak Bank for a banking partner with benefits (SBA that is).

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