What to Ask Your Banker

To make sure you are putting your money in a bank that will help your business grow, ask these questions.
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1. Is it necessary to maintain certain balances before the bank will consider a loan?

2. Will the bank advance a line of credit, and if so, what are the requirements?

3. Does the bank have limitations on the number of small loans it will grant or the types of businesses to which it will grant loans?

4. What is the bank's policy on the size or description of checks deposited to be held for collection?

5. Will checks under that size be credited immediately to your checking account balance? (This question is very important, and you must press for a definite answer.)

If you do not have a previous business account to serve as a reference, some banks will hold all checks for collection until they develop experience with you. Whether the bank exercises this precaution may depend on your personal credit rating.

Excerpted from Starting a Home-based Business