Posted on: 22 June 2016
If you are planning on opening a small business and are thinking about using your personal bank in order to finance your business, consider a commercial bank instead. Commercial banks offer a number of services to small business owners that can be beneficial to getting your business up and running.
A commercial bank specializes in working with businesses. The commercial bank accepts deposits and lets you withdraw your money, just as your retail bank would. However, there are other services that a commercial bank can offer a small business that you wouldn't necessarily be able to get from a retail bank.
One service that you can get from a commercial bank is the ability to set up a loan or a lease on equipment that you need for your business.
Commercial banks also offer factoring services. When you have a lot of money that is owed to you by your customers but you need to have money immediately in order to make sure that your business is still flowing, you can contact the factoring service at your bank. What they do is pay out funds to you, and, in return, you turn over your incoming payments to them so that they can collect the money from your clients. The factoring service will charge you a fee in order to do this, but as it is part of your bank, you should be able to take advantage of it as necessary.
The employer services that your bank can offer you include things like payroll. That means that they will have someone make sure that your payroll balances and that your employees get paid. It saves you from trying to figure out all your employees' tax withholdings. Employment services can also help you with things like retirement plans for your employees as well. If you are going to set up a retirement plan, you are going to need to have a fund for it. In order to make sure that the fund continues to have money to pay out to your employees, it will need to be invested.
If you are setting up a small business or you are looking for financial services for your business, you should consider using a commercial bank so you can take advantage of the services they offer specifically for businesses. Check out http://www.crossplainsbank.com for more information or to set up an account.Share