We are once again in unprecedented world concerns and our businesses are about to embark on the unknown financially as we find our new normal in this pandemic world. What we do know, is that we can attempt to mitigate these concerns with smarter business practices which can start at the main level, where our money is housed!
Here are some quick tips to make sure you are banking smarter.
- Make sure your bank is FDIC-insured and SBA-approved as this will help ensure your financing sources are going to be secure in a time of uncertainty.
- For example, with the CARES Act funding sources you had to bank with a 7a Lender in order to get financing through your bank, this left lots of folks hanging as big bank like Wells Fargo, Bank of America and Chase decided to only fund their largest clients first, leaving the general public of businesses out in the dark with no funding.
- Also, ensuring your bank is FDIC insured will help keep your money safer if things go really bad and there is bank institution failure – ie – you will be able to get your money out if the bank is failing. They also monitor these institutions and will do their magic if things start to look like failure to help mitigate loss, etc.
- It’s not just about who has the cheapest fees or who is offering the best deals anymore. Knowing your banker will help you navigate this sticky time.
- During financial uncertainty banks will be under scrutiny and banks under scrutiny are less likely to work with their clients in a positive light.
- Also, if you did get your PPP and you want to figure out ways of getting this forgiven, having a resource at your bank to help you navigate the forgiveness applications, etc. will only make things run smoother.
- A good bank and banker should also be able to help source the right funding for your businesses needs… so shop around… you don’t need to stay with the current bank you are at if they aren’t willing for work with you or fund you, or heaven forbid suggest you find a “rich uncle” #truestory
- You can also have more than one bank if you need to, just make sure you keep things organized.
for your Morals…
- Let’s be real, we all feel better when we help support the things we believe in and hopefully, community is something you can get behind.
- Support local! Much like shopping local you can ensure your community will thrive – banks are the same. Putting your money into your community bank instead of those large corporations will not only help ensure local success but it will make you feel like less of a COG in a wheel.
- And here’s a sub-bullet of why supporting your local bank or credit union is a smart move, cause sub-bullets are good for emphasis:
- They create jobs. Local banks and credit unions employ 700,000 people nationwide.
- They support the local economy; that’s you, that’s your neighbors business, that’s the local coffee shop, etc.
- They’re involved in the community; alot of time supporting community events, education programs, and neighborhood development.