In this line of business, it is important you take certain things into consideration if you want to attain success and profitability. You need to extensively consider the people you hire, the sort of projects you take on, the quality of service you render to clients, and most importantly, the bank you choose to manage your funds.
You might underestimate the importance of the bank you work with, but keep in mind that cash flow and access to cash are business factors that can make or break your company. In this modern age, banks play a very significant role in the life and sustenance of businesses.
As such, even if you already possess a working relationship with your business bank, it is recommended you always evaluate your options to guarantee that you are getting the best deal.
One thing you have to understand is that banks, like construction companies, have precise areas of expertise and knowledge. A consumer banker and a business banker have varying skill sets. So, you have to work with banks that are always evolving their technologies to meet the needs of their customers.
Best Bank for Construction Business
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If your plan is to expand your business to include many local branches, then this is the right bank to consider as they have more than 4,800 branches nationwide. The Chase Business Complete bank account makes it possible to manage your cash in and outflows, and with the QuickAccept app, it is more convenient to accept payments on your phone and online.
Bank of America
This is another top bank to consider because it is a traditional bank option that offers a whole lot of perks to modern businesses. As a construction business, it is recommended you look toward this bank because you will at some time require business services like loans or business credit cards, and Bank of America is the right option to provide those too.
Most businesses in this present age prefer to work with online banks due to the modern features they provide and the ease of transactions.
If you don’t mind the idea of doing your transactions online (or through a mobile app) and earning 1% interest, then you should consider this bank because you will not regret it. There’s no monthly service fee, and the company makes available small business loans and lines of credit.
This is another very powerful online banking option to consider owing to the wide range of benefits they offer to businesses. As a new or small Construction Business, if you’re looking for a free business checking account, this is the bank to look towards. There are no minimum balance requirements, and you can make $100 when you open a new account.
Factors to Consider When Choosing a Bank for a Construction Business
When starting a construction business, choosing the right bank is a very important decision. However, if you have been in business for a while, then it becomes challenging to switch banks. But one thing is certain, your needs will always change, so you should consider certain factors before choosing a banking partner for your construction business. Here are the top factors to take into consideration;
You have to understand that fees can add up really fast over the course of the year and if you are keeping a substantial balance in your bank, some of these fees will be waived or reduced.
A good number of modern banks provide introductory deals to make it easier or enticing enough for businesses or consumers to move their money. However, take your time to verify the long-term pricing to guarantee those invisible charges don’t appear later.
Truth be told, the days of the “old-school banker” have passed. As such, if you have to put in extensive efforts or hours on an endless phone loop every time you have a question, you will be wasting valuable time.
Access to Funding
This is indeed another very important factor to take into consideration. When clients are late with payments, your construction business will experience a slow period of business. This can be a huge setback if you lack credible access to funds.
If you are considering expanding your business, purchasing more equipment, hiring more people, or getting new technologies to run your business, then you need access to cash. Having the right relationship with the right bank makes it possible to access loans when you need them.
You will also want to consider this especially in this modern age. Most often, this includes;
- Online banking that makes it possible to deposit checks and get payments at any time, regardless of where you are.
- Mobile banking, because it makes it easier to check balances, transfer money, and even make deposits from your smartphone or tablet.
- Integrated systems that give you access to other financial functions, like month-end close and credit card management.
There are a whole lot of banking options available to you. Howbeit, prior to deciding, evaluate what’s important to you in a bank account. Note that this might be the convenience of having business accounts where you already have your personal accounts, but analyze to see if your current bank offers all the benefits and features you need.
Working with a bank that’s FDIC-compliant is a must. The Federal government has regulations that are meant to guarantee that your hard-earned money remains safe and secure.