Where to go for Small Business Banking?

I've been running a small business for a few years now and never bothered to open a bank account. My point of sale system (POS) has always done everything I needed: robust transaction reporting and even a debit card that I use for business purchases from my income balance. I've got some of my work in a few galleries now and they seem committed to paying me by check... So it's time I get an actual bank account since I can't deposit those checks through my POS system. 

Should I just head to the local credit union? Or go to one of the two big commercial banks that I have personal accounts with? How does one even choose a bank? I want to be able to deposit checks through an app because going to a branch to do such things is not something I'm looking for in my life. I don't anticipate needing business loans, which seems like one of the driving factors in choosing a bank. What else should influence my decision here? 

I would suggest the local credit union.  I swore off the big scum-sucking banks over 20 years ago.  Ain't going back.

If you can find a small bank with local roots that hasn't been gobbled up by the mega-banks, you could try that also.

Start with an accountant or tax preparer. There is a logic that an accountant doesn't really cost you money. A smart accountant or tax preparer will save you more money via deductions you didn't know about, than you will pay them for their services. 

Ask that accountant or tax preparer what bank they like to work with.

Personally, for my small business, I used a very local credit Union. My decision was mostly based out of geographical convenience.

Are the cheques made out to you or another entity? If they are in your name you could use an existing bank account. Just do deposits in any bank machine in your network or scan it with your phone to deposit.

I have mine in the local little bank that sponsors town fireworks and kids sports teams.   They're a great little bank.     I did not shop around or check with anyone else, though.

I know they have an app, but I don't use it, I prefer to stop in on one of our daily trips into town for dance/soccer/milk/etc.    They don't have nearly as much flexibility on their website as my largest-in-PA-possibly-the-US credit union I still use for my personal accounts, but for my business I don't really need it.  Any time I've had an issue with something like an international wire transfer or other things that are fairly common for me, I've been able to quickly get through to a real person who was able to help me out.

So, I guess my advice is to look at a local cause you support (town festivals, kids sports, dog park?) and see if there's a way to support that by using a local place?   Sounds like you won't have to actually interact with them very often..

Everyone hates the big banks. Not always sure I know why...

But I use Bank of America, and the primary reason is that I travel a lot. I don't want to go into a branch office. Their app is amazing!  They have the resources to invest well in the tool, and it works extremely well. 

SV reX said:

Everyone hates the big banks. Not always sure I know why...

But I use Bank of America, and the primary reason is that I travel a lot. I don't want to go into a branch office. Their app is amazing!  They have the resources to invest well in the tool, and it works extremely well. 

I think the problem with big banks is the same as the reason people hate a lot of large corporate stuff...  When you're a number, they don't really care about you.  I know a few friends that have accounts frozen for apparently no reason from BoA (both business and personal), and it took weeks of phone calls and mis-directions to get their money back.  In the meantime they lost a lot of time and even some money.    It's sort of like Google... It works great until it doesn't, and then, good luck!   Your best recourse is finding a social media company that they care about their reputation on (harder since Twitter effectively shut down) and hoping that you can @ the CEO and besmirch their good name.

Since you are in my neck of the woods, I can give a strong recommend to Banner Bank. I have dealt with banks big and small in both the US and canada, and also credit unions over 35 years of owning businesses. Banner is hands down the best. I get personal service, they always answer the phone, they once saved me from wiring $85,000 to a scammer, and every Christmas I get a hand addressed Christmas card signed by everyone in the branch. They are good people.

Credit union. I took my business banking to a local CU a bunch of years ago and they've been good enough that I moved my personal accounts there as well. 

In reply to WonkoTheSane :

True, but I don't care if my bank president shakes my hand. 
 

I don't mind being a number.  All they are is a number to me too. 
 

I want a company with the resources to handle the problems. And yes, I use Google. They berkeley up occasionally, but smaller companies don't have the security resources etc to protect my data. 
 

When a big company berkeleys up, it's annoying and I might loose a little time.  When a small company berkeleys up, I might be bankrupt (if they didn't have the resources to put proper protections etc in place).

I like shaking people's hands. I want my bank to take care of my money. 

SV reX said:

In reply to WonkoTheSane :

True, but I don't care if my bank president shakes my hand. 
 

I don't mind being a number.  All they are is a number to me too. 
 

I want a company with the resources to handle the problems. And yes, I use Google. They berkeley up occasionally, but smaller companies don't have the security resources etc to protect my data. 
 

When a big company berkeleys up, it's annoying and I might loose a little time.  When a small company berkeleys up, I might be bankrupt (if they didn't have the resources to put proper protections etc in place).

I like shaking people's hands. I want my bank to take care of my money. 

Right, but I don't want to float myself for a month while BoA pulls their head out of their arse to unlock my account because of some undisclosed reason.     I want to be able to drive down to the main office and talk to the manager/owner if I can't get things resolved in a timely manner.    Both banks are insured the same by the FDIC, so I don't think going bankrupt is a major concern.

SV ReX - "Everyone hates the big banks. Not always sure I know why..."

I haven't found something that BoA could do better for me and my small business, and I don't have the concerns that sidelined a few people that I personally know for over a month.  I believe that was the purpose of the original question, and it's also the reason that a lot of people do not recommend BoA or Wells Fargo.   You specifically asked for a reason, and I gave one.   No need to try to convince me :)  I'm glad it works for you, though!

In reply to WonkoTheSane :

Not trying to convince you. 
 

I already said how happy I am with BoA, and why. Sounds like you'd like me to change my mind. 😉

OP said he doesn't want to go into a branch. That's how I roll. Not sure why I need the friendly bank president or the ability to walk into his office.
 

Happy its working for you, but it seems to be specifically what the OP said he didn't want. 

I'm with SV reX except I use Wells Fargo and have since they bought out Wachovia in 2008. I have business and personal checking as well as cards and a business line of credit. 

They have been flawless for me.

There is at least one member on here that hates them with a 🔥 fiery passion that knows no bounds.

How do you do business with a corporation that treats their customers as targets to be defrauded, then buys their way out of trouble with a cool $3 Billion?

https://www.justice.gov/opa/pr/wells-fargo-agrees-pay-3-billion-resolve-criminal-and-civil-investigations-sales-practices

In reply to 1988RedT2 :

It's not hard. They have always done right by me. Never sold me something I didn't want or made a mistake that wasn't taken care of promptly. They do an outstanding job of catching fraudulent charges before I even know about them and credit accounts instantly when it happens. I can always talk to a person within minutes of calling them and the person on the other end of the line has never failed to solve issues or answer questions in a professional and timely fashion. 

I'll keep doing business with them. 

SV reX said:

In reply to WonkoTheSane :

Not trying to convince you. 
 

I already said how happy I am with BoA, and why. Sounds like you'd like me to change my mind. 😉

OP said he doesn't want to go into a branch. That's how I roll. Not sure why I need the friendly bank president or the ability to walk into his office.
 

Happy its working for you, but it seems to be specifically what the OP said he didn't want. 

Yeah, I'm not sure if you're being intentionally obtuse or we're just talking past each other somehow, so no worries. 

I know you can deposit via an app for my small town bank, and they do everything I would need.   I stand by my recommendation to evaluate if that's the case for you, Mezzanine. 

--- Out of this thread ---

My thoughts on the banks my company deals with “We use a few different banks. The smaller local banks are better for understanding your business and loan origination. The problem that arises from small banks is they like to merge or be acquired so you eventually end up with a larger entity anyways.”  

This is how google assesses my thoughts... which is accurate. 

Assessing Your Banking Strategy

Your observations about the benefits and drawbacks of smaller local banks are spot on. Many businesses find that these banks offer a more personalized approach and a deeper understanding of local economic conditions. However, the risk of mergers and acquisitions can lead to a loss of this personalized service.

Potential Solutions to Consider:

1. Diversification: Maintain relationships with multiple banks, including both smaller local institutions and larger regional or national ones. This can provide a balance between personalized service and broader financial capabilities.
2. Due Diligence: When considering a smaller bank, research their financial stability and any recent merger or acquisition activity. This can help mitigate the risk of sudden changes in your banking relationship.
3. Negotiate Terms: Leverage your business's value to negotiate favorable terms with your banks. This could include lower fees, better loan rates, or more flexible terms.
4. Consider Alternative Financial Institutions: Explore options like credit unions or online banks. These institutions may offer competitive rates and personalized service while potentially being less susceptible to mergers and acquisitions.
5. Long-Term Planning: Develop a long-term banking strategy that anticipates potential changes in the banking landscape. This can help you be prepared for mergers or acquisitions and make informed decisions about your banking relationships.

I've dealt with 1st Citizens Bank for 17 years now.  Business accounts, SBA loan, mortgage on my building.  They've always been responsive and easy to deal with.