Canadian banks have traditionally not offered a lot of options for small businesses, instead treating small business bank accounts the same as personal bank accounts (except for higher fees for businesses). According to The Balance—Small Business, in spite of 98% of businesses being small business, banks have not been servicing small businesses very well.
$9.5 Billion In Loans For Small Businesses—That’s a Lot Of Money!
It’s not from a lack of money being handled by small businesses, either. Per the Government of Canada, “Over the past 10 years, small businesses have received over $9.5 billion in asset-based financing representing over 63,000 loans made.” Canadian banks have started to come around to the idea that there is a benefit to them from increasing the options they have for small businesses, however. Many banks are now offering small business accounts that have smaller fees, or fees that are more tailored to your banking needs.
Is Your Bank Working For You?
Since banks are starting to offer better options for small businesses, it might be time to re-visit the bank you are currently using and see if they really are working for you. As noted by entrepreneur.com, “When it comes to financial services, small-business owners should never feel forgotten. However, many financial institutions provide small businesses with antiquated cookie-cutter products meant more for consumers rather than providing small businesses with true business-grade products typically reserved for corporate clients.”
Warning Signs of a Bad Fit
Some of the warning signs that your bank is not a good fit for your business:
- Your account doesn’t do the things a business needs it to do.
- You can’t do all your banking online—online banking is a standard at this point.
- Bank software and your business accounting software are not compatible.
- Paying too many fees, paying for services you don’t use, or the limit before fees are waived is much too high.
- Your bank won’t consider you for a loan.
Which Bank Will Work Best For You?
Since banks are coming around to the idea of creating products that work better for small businesses, it might be time to look at your bank account, what you have, what you need, and which bank will service your business the best.
Contact Shaw & Associates Chartered Accountants for accounting help you can count on. One complimentary meeting with us will put you and your business on a more profitable and positive path.