Checks and Balances

"I wanted a bank I could trust that was close to my store location, offered competitive rates and allowed me to process credit cards through the Internet," says Timm, who closed the north Naples storefront shortly after opening it in favor of running the business online. "Fast and accurate service was also a requirement. I looked for banks offering good start-up programs, like free business checking and credit cards with low or no monthly fees." She ultimately went with Chase.

"Chase had everything I was looking for, and it happened to be where I banked personally—that scored it several points as well," she says.

Suzanne Specht, assistant director at the Small Business Development Center, Florida Gulf Coast University, has additional suggestions for businesses looking for a bank: Consider one that is a Small Business Administration (SBA) lender, which guarantees small business loans; and get a referral from an attorney or a local chamber of commerce.

BUSINESS GETS PERSONAL

While considering the menu of small-business services a bank offers, get to know its people, especially at the branch you expect to visit regularly. It’s important that your prospective banker wants a full relationship and will be able to help your businesses down the road, Specht adds.

"As a business grows, it needs change. Good bankers invest the time to understand their clients and their needs," says Dave Gordley, senior vice president and senior lender for TIB Bank in Southwest Florida.

Your banker can save you money in fees, grant you a line of credit, and increase your credit via loans, performance bonds and letters of credit. With their extensive connections in the community, bankers can also provide introductions to potential customers, suppliers, employees and investors.

When Melody Bales, owner of The Lady from Haiti art gallery and gift boutique in Naples, switched to SunTrust, its proximity to her store was not the only reason.

"Let’s just say I spent time asking, ‘What the heck is that charge for?’ with other banks," she says. "You want the person you work with to have your best interests at heart."

At SunTrust, she found the staff "upfront, honest and friendly," she says.

Bales wanted the most perks with the fewest surcharges. SunTrust offered to link her personal and business accounts, and the consolidation gave her the additional perk of two free lock boxes. She believes that SunTrust is watching out for her company’s bottom line, not just its own.

"I once complained about an illegality committed by a former branch manager on an equity loan," she says. "After not too much more time, I noticed she was no longer with SunTrust. Management takes responsibility for employees."

DOES SIZE MATTER?

Many small and medium banks cater specifically to small businesses, while some larger institutions have small business divisions.

Small business owners should place a premium on personal service. This means connecting with a banking representative who will take the time to get to know you and your business. Most small businesses don’t need a bank with national presence. A community bank offers strong pros to a small-business person—proximity to the business, knowledge of the marketplace and local ownership. In addition, local banks tend to have more employment continuity. Often, a corporate banker looking to advance does a tour of duty and moves on.

Large banks, such as Wachovia and Bank of America, often employ specialists who are tuned into small business issues and offer access to the people who get things done. Also, if you require regional and national representation or branches outside of your community, a large bank might be a better choice.

Personal service might be harder to come by in larger banks, though. "A lot of banks have 800 numbers for service levels," says Mark Morris, president and CEO of Commerce Bank of Florida. "If you need an answer quickly, that doesn’t fit."

If you’re considering a community bank, Morris suggests asking if the board members are local, which makes it more likely that they know the marketplace. Research the bank’s reputation, and find out if it offers the services you need, and can provide them within your required turnaround time.

"Also, with community banks, be wary of a sale," Morris cautions. "When ownership changes, employees often do as well. Look carefully at the life cycle of a bank."