Work your own hours. Be your own boss. These are just a few of the things you can look forward to when you start your own business. Before you go ahead, though, one of the most important things you’ll need to do is decide on a banking partner. Here’s why you’ll want to pick a community bank over a big bank.
What does it mean?
What is the definition of a community bank, anyway, you may ask? The term typically refers to a bank with less than one billion US dollars in assets under management, the Huffington Post says. The $1 billion metric is an easy way to tag community bank but it doesn’t offer much in the way of information.
Not just small but local
Community banks are not just small. These banks are often local. That means the majority of their deposits are from local individuals and businesses. Big banks, on the other hand, often derive their deposits from sources all over the country and even from abroad.
Provides personalized services
Community banks are also known for providing personalized services. They tend to specialize in relationship banking. For instance, if you need a loan for your business, a big bank may not give you that loan. But a community bank will find a way to assist you or provide you with flexible terms and conditions, depending on your reputation and standing in the community.
Less fees and charges
Community banks give businesses great cost-savings. They often charge less for their business accounts. If you’re tired of all the fees and rising charges that your bank sets, then it may be time to make the switch.
If you find yourself asking: what is the definition of a community bank, explore your options by checking out your local community bank today.
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