So, you need funding for your business, but unsure of the best approach? It may be best to use the branch that you’re already banking with, so let’s look at some reasons why.
Already Have Your Details
Firstly, you’d be eliminating the effort of setting up a new account with all your information as your current bank has this already. Setting up a business account with the bank you’re already with could take up time alone. So ultimately, it could be quicker to stay with your current branch if it’s serving you well.
You’re More Likely to Be Accepted
Although it isn’t a guarantee, you’re more likely to receive a loan grant with a bank you’re already using. This is because they already know your history, credit score, and financial patterns. Going to another bank can be a lengthy process that you may not be able to commit to. Considering the result that you want from this isn’t guaranteed, it may not be worth your time.
Better Rates (Likely)
You’re more likely to be approached with better rates and deals at a faster rate with your current bank than with a new bank. This is because your current bank is already able to contact you with promotional offers through emails and texts. Not to say that another bank couldn’t offer you more attractive business rates, but it could be worth discussing this with your current branch before switching; it’s possible they would offer a deal or discount.
Understanding Your Needs
Having already established a relationship with your current bank, they already understand your history, patterns, requirements, and abilities. With your bank having that basic understanding of yourself, you’d be cutting out unnecessary back and forth telephone conversations, that you would probably have with an outside bank. If you’re ready to start fresh with a new bank, we advise researching to see what other banks can offer.
Strengthening your loyalty with the branch you currently bank with could lead to perks such as interest or being the first to hear about promotions and discounts. Switching banks could make you realise you were better off with your original bank, as better promotions aren’t guaranteed. Not only that, but you could also end up spending more over time on things like interest.
Something to consider is the lesser risk in opening a business account with who you’re with. If you’ve only experienced positive service in the past, you can trust that the standard of service will be consistent. Greater risks are always possible when starting fresh with a new bank, as you cannot always be sure that you’d be getting the service that you require and deserve as a business owner.
Quicker and Easier
With all points above considered, overall, it is just quicker and easier, which benefits you and your business as it’s less time and energy wasted.
Whether you choose to stick or change bank, feel free to contact us for any advice you may need!