How Commercial Banking Can Benefit Your Small Business

1. How Commercial Banking Can Benefit Your Small Business As a business owner, you have to think about every aspect that will help your business grow in the future, including your banking partner. The bank you choose to open your checking account can make all the difference. One of the first ways a commercial bank can benefit your small business is by helping you open a checking account with ease. You can apply for a debit and credit card, which are just some of the benefits these banks provide smaller business owners to help you grow. A credit card can often be tied to your personal credit history, so ensure before applying for a revolving line of credit that you have good credit history for the business and your own personal accounts. It's important to remember to keep your business and private banking separate. Do not keep them in the same bank account. Remember business bank accounts offer different benefits than personal bank accounts, such as lines of credit. If you need a line of credit, a commercial bank is the first place to turn. A line of credit, such as a credit card, ensures you only pay interest on the funds you use. You will also be able to apply for small business loans for paying bills, purchasing inventory or equipment, buying real estate, another vehicle for your fleet and more. Most of the small business loans are secured, which means you will need collateral. SBA (Small Business Administration) loans are very popular in the US for small companies and they are government backed. Most commercial banks offer SBA loans, which are ideal for those who are turned down for another commercial loan. SBA awards loans and they guarantee the loan, which offers less risk to the banker. In turn, you enjoy flexible repayment terms, lower interest rates, and more. Further, if your small business has been suffering due to the COVID-19 pandemic of 2020, then the SBA is offering emergency loans to small businesses to help pay employees while the businesses were forced to close. Your commercial banker can assist with the completion of the forms. Commercial banks specialize in business financial products, which means that they can quickly identify what financial products can benefit you. They can assist you with a full range of services including payroll management, retirement planning, tax planning and more. They can assist in setting up digital payments and more. When starting your business, they can advise on the best accounting practices to follow to help your business grow and succeed. A commercial bank works on making it easier for you, as a small business owner, to manage your day to day financial tasks. They help you borrow money to grow as they have representatives that work on your accounts to ensure you receive the best solutions. Of course, not everything is easy and there are some possible downsides to commercial banking, Commercial banks are more expensive than just opening a traditional bank account. You may be

2. offered services you don't need. You need to bear in mind that they have the financial products your business may need in the future. Maybe you've already been operating for some time. At some point most small businesses will require commercial banking services. Ensure you do your research, review the banks in detail and look for important features such as excellent customer service, a host of financial products, and identify their fees before making any final decisions. About Us: CalPrivate Bank, formerly San Diego Private Bank, is a leading private bank serving clients throughout Southern California in the United States. This very well-established bank services high net worth individuals and businesses of all sizes. CalPrivate Bank's focus is to provide a Distinctly Different Banking Experience through unparalleled service and creative funding solutions for individuals and businesses with complex financial needs. They offer a wide array of financial services, including checking, savings, time deposit accounts, treasury management and related tools. To find out more, visit https://calprivate.bank.