Local banks pride themselves on their close, personal relationships with their business clients. When so many non-essential businesses felt the financial effects of COVID-19, businesses needed to rely on their banks’ resources more than ever. The need for local banks’ responsiveness to local businesses’ needs also increased. If you’re wondering how your business can benefit from banking locally, here’s what you need to know to move from your current megabank to your local community bank.
Why Local Banks Are Important
Local banks are an intrinsic part of large and small communities everywhere, from the smallest rural town to the largest metropolis. Historically, community banks have been a way of life, proudly supporting local merchants and residents with essential financial services. Local banks have genuine, positive relationships with the businesses and the communities they serve and provide the same business banking services that megabanks provide, including:
Local Banks Understand and Value Your Business
Choosing the right banking partner for your business can feel daunting. It’s especially crucial for small business owners to find a financial institution to help them with core business services like paying bills, receiving payments, and disbursing salary payments. Fortunately, local banks offer as many services as national banks, including online banking.
If you are deliberating over whether to choose a local bank or continuing with your current megabank for your business, then fret no more. Local banks understand the difficulties that new and small businesses face. Community banks offer complete banking services and know exactly what a local business needs to achieve financial success.
Local banks value each of their business customers as individuals with specific banking needs. It’s not unusual to be greeted with a bottle of water or a cup of coffee when entering your local community bank branch. Local banks take pride in serving their business customers like neighbors and giving them the attention they need and deserve. Many local banks also offer programs and incentives tailored to their business customers’ needs.
Another added benefit to using a local community bank is the competitive rates. At times, there can be more flexibility with terms when you need a business loan. This can be very attractive to small and mid-size businesses who are looking for a more nimble partner to help with crucial financing.
Local Loan Decision Making
The Institute for Local Self-Reliance reports that the country’s largest banks commit only 18% of their commercial loans to small businesses. Local banks have insight into the local market and can leverage their knowledge of the community to make faster loan decisions. This can lead to your small business loan getting approved much quicker than with a national bank.
Benefits of Choosing a Local Bank
- Service you can count on. What happens when you run out of checks or your business debit card is lost? Local banks offer customized, easily-accessible customer service to handle your immediate banking needs.
- Location, location, location. While you can conduct many banking services online or via a mobile app, you may need to speak directly with a bank representative to conduct certain business banking services. For instance, when you need to send a bank-issued certified check, you want a bank that is convenient to get to.
- Growth support. Local banks can support your business as it grows.
Business Banking You Can Trust
According to BAI, a nonprofit financial consulting firm, most business owners seek financial services providers that make their banking experience easy so that they can focus on running their business. Small and large business owners alike want customized business banking services from a bank they can trust. Local banks tend to have more business-friendly policies than megabanks.
Banking locally, your business can experience:
- An enhanced in-person environment at physical branches
- Tools to create more customizable banking solutions
- Helpful, real-time service to assist with your everyday banking
Partner With Your Local Bank Today
Banking locally is the smartest choice for your business. Compared to larger, national banks, local community banks offer more personalized relationships, products, and services to meet your business banking needs. If you’re currently banking with a megabank and are ready to make the switch to a local financial institution, visit Western Bank today! We listen to and understand the voice of our business customers. Visit us locally or online to learn about our services and how we can be a great financial partner with you and your business.