Choosing The Right Bank
Feel like just a number at your bank? Then you might want to take some of your business to a niche bank.
What is a "niche bank"? Simply a bank that deals with particular industries.
What are the advantages of dealing with a niche bank?
- They have fewer customers but know them well.
- The bankers know the particular industries they serve well, so they're usually more comfortable riding out a firm's inevitable economic dips .
- Niche banks typically don't mass-advertise. Instead, they connect with trade associations, advertise in industry publications and rely on customer referrals
Here a few things to consider when looking for a niche bank:
- Evaluate the bankers' experience. Officers should be business bankers with at least three to five years' experience.
- Check loan turnaround times. If a niche bank has a stable office staff, they've taken time to get to know customers and their businesses and should respond quickly.
If there's a downside to choosing a niche bank, it's size. They tend to be smaller and local or regional, which means customers could outgrow the bank. And if you think the rash of mergers and acquisitions have rendered niche banks an endangered species, think again. As larger banks get more efficient at serving broad-based markets, this will clear a path for tightly focused smaller institutions that can spend more time on customers than on bank-buying.
Entrepreneur Editors' Picks
These Co-Founders Are Using 'Quiet Confidence' to Flip the Script on Cutthroat Startup Culture and Make Their Mark on a $46 Billion Industry
My 7-Year-Old Daughter Started Selling Eggs. Here's What She Taught Me About Running a Startup.
Why You Need to Become an Inclusive Leader (and How to Do It)
Career Transitions You Can Make in Your 40s and 50s
Billionaire Naveen Jain Is an Expert at Disrupting Fields He Has No Experience In. His Secret Sauce for Building Multi-Million Dollar Companies? 'You Have to Come as Naive.'
4 Principles to Develop Next-Level Leadership at Your Company
This Filipino American Founder Is Disrupting the Beverage Aisle by Introducing New Flavors to the Crowded Bubbly Water Market