Small banks suck (to put it plainly). I don’t care what you’ve heard or what you think; using a small bank for your business needs is risky and can be detrimental to your success. This is one case where BIGGER is better.
For my businesses, I’ve gone the small bank route and was burned multiple times. You’ve heard it all before:
- “Small banks care more about their customers and provide better service” – FALSE
- “It’s easier to get a loan or line of credit” – Ehhh! Try again…
- “Small banks make less risky investments and are more safe and secure for my money” – Are you kidding me?
The larger banks have so many more tools that can make life easier for an entrepreneur. But most of all, they provide better security for your money. In a time when identity theft is rampant and fraudulent online transactions are growing exponentially, the larger banks are taking huge strides to combat this.
Most large banks are also publicly traded, meaning their books are open to the public. There are many savvy businessmen that won’t use a certain bank until they’ve combed through their balance sheets and investment practices. Good luck trying to get that kind of information from a “Mom and Pop” bank. Considering the recent economic collapse and torrent of bank failures, this type of caution should always be exercised.
Trust me…stick with the big guys on this one.
I use Bank of America. And I always will.