Bank fees can be a significant burden for small businesses. However, with some strategic planning and a few smart moves, you can significantly reduce or even eliminate many of these costs. Here are some actionable tips to help your small business save on bank fees.
Know Your Fees
Start by understanding the types of fees you're currently paying. Common bank fees include:
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Monthly maintenance fees
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Transaction fees
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ATM fees
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Overdraft fees
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Wire transfer fees
Once you know what fees you're being charged, you can take steps to avoid them.
Choose The Right Bank
Not all banks are created equal. Some are more small-business-friendly than others. Look for banks that offer:
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Low or no monthly fees for business accounts
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Free transactions up to a certain limit
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No ATM fees or a large ATM network
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Low-cost or free wire transfers
Consider online banks as well, which often have lower fees than traditional brick-and-mortar banks.
Maintain Minimum Balance
Many banks offer to waive monthly maintenance fees if you maintain a minimum balance in your account. Make sure you know what this balance is, and aim to keep your account above it.
Bundle Services
Banks often offer fee reductions if you bundle multiple services, such as checking accounts, credit cards, and loans. Speak to your bank about available packages and how they can help reduce your overall banking costs.
Use In-Network ATMs
ATM fees can add up quickly. Stick to using ATMs within your bank's network to avoid these fees. If your bank has a limited network, consider switching to one with a larger footprint or more flexible policies on ATM usage.
Automate Payments And Deposits
Automating payments and deposits can help you avoid late fees and overdraft fees. Set up automatic bill pay for your recurring expenses and automate transfers to ensure your accounts are always adequately funded.
Negotiate With Your Bank
Don't be afraid to negotiate with your bank. If you have a long-standing relationship or maintain high account balances, your bank may be willing to waive certain fees. It never hurts to ask!
Use Digital Banking Solutions
Many digital banking solutions offer competitive features with lower fees compared to traditional banks. Platforms like PayPal, Square, and Stripe provide business banking services that can help cut costs.
Regularly Review Your Account Statements
Make it a habit to regularly review your bank statements to catch any unexpected fees. If you spot a fee that you weren't aware of, contact your bank to understand why it was charged and how to avoid it in the future.
Explore Credit Unions
Credit unions are member-owned financial institutions often offering lower fees and better terms for small businesses. Explore local credit unions to see if they provide the services you need at a lower cost.
Reducing bank fees requires a proactive approach, but the savings can be substantial. Implementing these tips can help you keep more of your hard-earned money where it belongs—in your business.
Since 2005, Quikstone Capital Solutions has been a trusted advisor to thousands of merchants. Quikstone provides these merchants with easy, fast, and flexible working capital for all their business needs. If you need cash for your business, contact us today. We have only one goal: to help your business succeed.