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7 Reasons to Change Business Banks

How do you know when to switch business banks? If you don’t have the services you need or no longer trust your bank, it might be time. Keep reading for seven reasons to change your business bank.

Moving on from a financial institution is a big decision. You might feel loyal to a bank because you’ve worked with them for a number of years or because they were the first one you signed on with. But if a bank isn’t serving your business, it might be time to switch business banks. Your business bank should be an asset to the success and growth of your business.

 

Why do businesses change banks? A recent PwC survey of 469 small businesses across the United States revealed common reasons, ranging from mistrust to poor communication. If you can relate to any of the following challenges as a small business owner, you—and your business—may be better off by changing business banks.

 

7 common reasons to change business banks

 

1. Diminishing trust

The bank you work with should make you feel valued and that your needs are understood. You want a bank partner that’s on your side, wants to help you succeed and is empathetic to your journey as a small business owner.

 

According to the PwC survey, 64% of small business owners said a lack of trust or transparency may cause them to change business banks. When communication is unclear or infrequent, it can be hard to trust that your bank understands what’s best for your business and your finances.

 

Your banking partner should proactively provide you with sound financial advice, so you can make smart, strategic decisions that help your business grow. When you compare banks, ask what type of support each one will provide for your business.

 

2. Poor customer service

Just like you’d aim to provide prompt and reliable customer service to your own customers, you deserve the same from your bank. The PwC survey revealed more than 60% of small business owners want lines of communication to stay open with their banks. Nearly two-thirds (64%) want short wait times to speak with a banking representative.

 

Small business owners want personalized customer assistance, too, with 61% saying a lack of that would be a reason to switch financial institutions. You should have direct access to your relationship manager or banker so you can easily connect with them when you need to.

 

If your business is experiencing customer service problems like poor communication or the inability to get in touch with a real person when you need to, you may want to look elsewhere for a banking relationship. If you’re experiencing interactions that are unhelpful or rude in tone, or you feel like your complaints aren’t taken seriously, those are red flags that don’t bode well for getting help when you need it in the future. At Cadence Bank, we prioritize timely customer service and take a relationship-focused approach with each of our business banking clients.

 

3. Lack of funding options

Funding is essential to the growth and efficiency of small businesses. Small business loans and lines of credit enable you to expand your operations or better manage your working capital. Having access to funding enables you to meet your varying business needs. About 61% of business owners said they might switch financial institutions due to a lack of availability on lines of credit, according to PwC’s survey.

 

Your lending options should be clearly explained, too, so you understand all your options and feel confident you’re choosing the right ones. Our bankers are happy to help you decide between a loan or line of credit and walk you through the small business lending application so you know what to expect if you change business banks.

 

Learn more about small business funding

Download our eBook, “What's the Difference Between a Small Business Loan, Line of Credit & Credit Card?” to learn more about small business funding options.

 

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4. Inconvenient locations

Many small business owners want the option to walk into their bank and talk with their banker face to face. They also want to be able to quickly visit their bank when they need to make deposits or withdrawals.

 

If your bank isn’t close to your business or has limited hours, that could become an inconvenience for you and your staff. If you’re tired of driving out of your way to get to your bank, it might be time to find a business bank near you.

 

5. Few business banking services

As your strategic partner, your bank should have a variety of business banking services that support you as you expand. These may include:

 

 

If your current bank doesn’t have all the tools you need, you may be missing out on efficiencies. An advantage to working with one bank that offers all the services you need is it’s easier for them to spot opportunities to streamline processes or grow your business.

 

While some banks may offer a wide variety of services, this doesn’t necessarily mean that the quality of service is there, so be sure to research banks thoroughly before making a switch. At Cadence Bank, we are committed to innovation and pride ourselves on offering high-quality services that keep pace with the industry. If you’re not sure which types of services are needed to meet your business goals, our team of business banking experts is happy to provide guidance.

 

>>Related Reading: What Small Business Owners Should Look for in a Bank

 

6. Inadequate fraud protection

Organizations lose 5% of revenue to fraud every year, according to estimates in the Report to the Nations Global Study on Occupational Fraud and Abuse by the Association of Certified Fraud Examiners. Having access to fraud protection solutions is a crucial part of keeping your business secure. If your bank doesn’t offer these services, it might be time to change business banks.

 

At Cadence Bank, we offer fraud prevention tools that lower your business’s risk of becoming the target of check and wire fraud. Our Positive Pay service protects you against unauthorized checks, and our ACH Positive Pay service notifies you of possible fraud in your business’s electronic transactions. 

 

7. Inefficient processes

Efficiency, simplicity and product quality all help you better manage your business finances. Small business owners need time-saving processes to receive money, send out money and manage cash flow. For example, the PwC survey found 63% of small business owners would like to see no-hassle credit card processing.

 

If you or your employees feel that your business bank often makes things more difficult than they need to be or doesn’t prioritize process improvements, this could be a sign it’s time to move on. You deserve a bank that supports your operations and growth, not one that hinders them.

 

Cadence Bank works for you

Cadence Bank has essential tools and experienced business bankers that can help you grow your small business. We’re committed to becoming a trusted partner that provides you with strategic financial advice and a variety of business banking solutions. To learn more about our services and the process of switching business banks, contact a small business banker.

 

If you’d like to read more about business banking, check out our other Fresh Insights articles.

 

 

 

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.



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