One of the aspects of opening a pet franchise that is often overlooked is finding the right bank. Many people think they should simply go with the bank they have for their personal account. However, this is not always the right option. Rather you want to go with a bank that will truly meet your needs. To do this you will need to look at a few key elements of the banks you are considering.
Think About Your Requirements
Before you start looking for a bank, it is best to determine what your requirements will be from the bank. While having a checking and savings account is a given, think about the number of deposits you will need to make for your pet franchise, sweep accounts, merchant accounts, commercial cards and other aspects you may need for your pet franchise. If you are unsure what all you will need, it is a good idea to speak with the franchisor as well as your accountant.
Look at the Details
Once you know what you will need, the next step is to examine what the banks offer. While this may seem like a lot of work, it is worth it in the long run. You want to know the various fees for services as this can add up quickly. The bank will be able to show you the list of fees on the account. You can usually get this online without having to go into the location.
Don’t Forget Customer Service
You should find a bank that you can build a relationship with. This means more than just finding a bank that is easy to get in and out of. Rather you want to find one that offers great customers service and will be able to help you with your needs. This is why it is helpful to look at reviews on the bank before making your final decision.
National or Local Financial Institution?
Some people think they need to go with a national bank because they are better known and have better protection. You should know that local banks and credit unions will have the same protections on them as larger national financial institutions. In many cases, the fees are lower and there are incentives to encourage the community to bank with them. Plus there is the added benefit of knowing you are supporting your community. You will want to weigh your options by looking at what they offer in comparison.
Credit Union or Bank for Your Pet Franchise?
This is another question pet franchise owners ask when they are looking for the right financial institution. Many people like credit unions because they tend to have lower interest rates on loans and tend to approve applicants easier. They generally tend to have higher interest rates for savings and deposit accounts. This does not mean that they are naturally the better option. As with the national vs. local financial institutions debate, you will have to judge each bank or credit union individually in comparison to the other options in your area.