Choosing a bank

Guide to choosing a bank for your business

One of the priority decisions you will make as an entrepreneur is choosing a bank. It’s the place you will be keeping your winnings. HerBusiness guides you on the best selection.

Choosing a bank for your business has become easier. Arguably, all Kenyan banks today offer business accounts. That is one thing to tick off your list. The challenge comes in comparing them. What should you consider to make the best decision?

HerBusiness gives you four major themes to be keen on as you hop from bank hall to bank hall. This is in light of the turmoil Kenya’s banking sector has experienced recently.

An understanding banker

When choosing a bank, you want someone who understands your business. The bank must be familiar with the industry your business is in. it also has to appreciate the stage your business is at. This will help you get the best kind of service. It is also important that bank representatives are accessible to you, not just so you can borrow monies, so that issues that develop can be ironed out better.

Liquidity

Your business obviously needs cold currency to meet its ever existing obligation. Cash flow issues do sink businesses. So when choosing a bank do not ignore any hindrances to your liquidity. As you compare Kenyan banks consider how easy it will be to access your money. Are there services like mobile banking or internet banking? How easy is it to transfer money to other accounts?

Services

It’s called the service sector for a reason. Don’t stop at them keeping your money. Look for those fine margins that put one Kenyan bank over the other. If there’s a bank telling you that opening balances and minimum balances are not required give them your ear. Lookout for the obvious overdraft and loan offers to business accounts. Some banks in Kenya even bring free seminars to your attention so go ahead and be courted.

Safety

This is the monster at this moment, isn’t it? In light of everything, it will prove safe to join those too-big-to-fail banks. The Government will bail them out with your other monies if they mess up. This is not a write-off of small institutions. You can totally join the competition to banks such as Saccos. They offer even more personalized services and are just as safe.