Business banking services are a lifeline for the 2.4 million (and counting) small businesses in Texas. If you’re an entrepreneur, are thinking about starting a business, or are a seasoned business owner, this likely comes as no surprise to you.
It’s tough to start a business. It’s even tougher to sustain it.
But we don’t just mean financially (even though, yes, that’s our expertise). There’s also the emotional and mental costs that often go hand-in-hand when worrying about the bottom line.
We understand this personally because local Waco entrepreneurs are our long-time customers, friends, and neighbors. Not just today, but for over 130 years. Our bank’s history is filled with local mom-and-pop shops, large regional franchises, and multi-generational businesses that used our services to keep their dream alive.
So below, we’re sharing 5 key business banking services that can support your small business. Learn what’s available to you and why it’s worth adding to your financial toolbelt.
Small Business: The Money Behind the Idea
Business Checking Account
Business checking accounts make it easy to complete day-to-day payments and handle other routine, manageable expenses.
If you’re just starting out, we recommend opening a dedicated business checking account (one that’s separate from your own personal account). This keeps your business dealings separate from your personal finances, giving you a clear picture of your business’s financial situation.
Stay up to date with your expenses and payments. Plus, offer easy access for your accountant to view or assist with your financials.
Payment by card is increasingly popular, so it’s important your small business can accept payment by card.
A business checking account will show customers that your small business is legitimate and professional.
With TFNB’s business checking account, your business will earn a competitive earnings allowance, based on your average daily positive collected balances. This feature allows you to offset checking fees based on your account balance. With a minimum starting deposit of just $100, it’s easy to get your business checking account up and running.
Money Market Account
You understand the benefits of a savings account. And you know how practical a checking account is. Think of a money market account as a mix of the two. A business money market account with TFNB can be an important tool for growing your business’s funds, while still allowing you to use your money as needed.
There are a variety of benefits that come with a business money market account, like:
- Higher interest rates than a traditional savings account, allowing you to earn more on interest while having liquid cash available
- FDIC Insurance of up to $250,000 per account
- Ability to pay bills from the account
- Effective cash-flow management
- Check-writing ability
- A debit card linked to your account
We offer a low minimum deposit and a low required minimum balance of $2500, making this the perfect option for you when you’re just getting started. We give you the freedom to transfer and withdraw when you need — because this is your money, after all.
Stop missing out on valuable interest. Ready to open your account?
Business Credit Card
Intuit QuickBooks released a global study, the State of Small Business Cash Flow. According to the study, 69% of small business owners are kept up at night with concerns about cash flow.
If cash flow is one your list of concerns (and we bet that it is), a credit card is a simple, highly practical tool. When used responsibly it not only organizes your expenses and makes payments online safer, it’s a safety net when cash flow slows at certain points in the month or year.
There are distinct benefits when it comes to opening a card for your business, rather than using a personal credit card for business-related expenses:
Higher Credit Limits
Before the doors even open, your business can incur large expenses. An important feature of a business credit card is the higher credit limit. This can be a much-needed tool when buying equipment or paying that first month’s rent.
Easy Expense Tracking
Receive an annual report of your credit card spending. This will help you keep track of your business expenses as you plan for the future. Additionally, you can order free employee cards with customizable spending limits on each to make it easy for employees in your company to make purchases.
Separation of Personal and Business Expenses
It’s important to separate your personal finances from your business finances. This not only protects you and your assets, but helps you track your business expenses more easily.
Cash Flow
When starting a small business, purchases are likely large while revenue slowly begins to trickle in. With a business credit card, you won’t have to worry about paying for expenses in full. When cash runs low, you can pay for the things you need without putting your business on hold, then pay off your bills once revenue allows you to.
Rewards
When you use your business card each month, you will earn rewards and incentives. TFNB is proud to offer our special Dream Points rewards program, which earns you extra points just for banking with TFNB. You’ll be automatically enrolled and rewarded one point for every dollar in qualified purchases. Dream Points can be redeemed for cash back, airline discounts, or discounts on products and services your business needs.
TFNB offers both Visa and MasterCard business credit cards. Whichever you choose, it can be used anywhere — from right here in Waco or wherever your next business trip takes you.
SBA Loan or Conventional Bank Loan
Loans are a business banking service that work best for big costs. Use a loan to pay for things that are integral to your success, such as:
- Working capital: the everyday expenses of running a business
- Debt refinancing
- Purchasing real estate: for your first location or an expansion
- Equipment: important software, tools, etc.
- Furniture and fixtures
You have options when it comes to your business loan.
If your business has been in operation for many years, and you have generated a good credit score, a conventional bank loan will give you a quicker payout with a simpler process.
With these loans, the bank shoulders 100% of the risk if your business defaults; that means approvals may be harder to achieve if your business doesn’t have much financial history yet.
If you are just starting out and looking for a loan with a small down payment and more flexible terms, an SBA loan could be right for you. While the U.S. Small Business Association (SBA) does not directly lend to small businesses, they do partially guarantee loans with certain lending partners. This reduces the risk involved on the lender or bank’s side and makes these loans more accessible to start-ups or new ventures with less financial history.
TFNB is proud to be an official SBA Preferred Lender. In fact, we are the only one headquartered in McLennan County, making us the most convenient choice for all McLennan County small businesses.
While these are the high-level details, it’s important to consult with a banker before you apply for any business loan. Our Waco lending team works with business owners like you everyday, so we can guide you toward the loan that best aligns with your goals.
Local Bankers
One of the most important services your business can receive isn’t always an account or card.
Today, nearly every business owner has a bank, yet few have a banker. To make the most out of banking resources, find a person inside your bank — one who takes the time to know the person behind the account. When times are good, it may seem like an unnecessary step. However, when times are bad, or cash flow slows, it can be one of the most important business relationships you have.
This might be a lending officer, but that’s not always the case. Either way, your banker can be a fount of knowledge when financial questions pop up within your small business (as they inevitably will).
- Are my financials as strong as they should be?
- How should I consolidate my current debt?
- How long should I expect to wait for loan approval?
Get answers to these questions, and find greater confidence with your money, by saying “Let me ask my banker.”
Local Business Banking Services for Local Wacoans Like Us
These business banking services are nothing new. You’re likely to find many of them at other lending institutions or banks. But as we mentioned earlier, you don’t just need financial support for your business. You also need local champions for your dream — people to give you guidance, listen to your ideas, and help you build the future you envision.
Bankers who listen and care is our most important service. It sets us apart from those other lending institutions and banks that only look at dollars and cents.
To meet bankers who understand your needs as a small business owner, visit your closest TFNB location. Like with Di Campli’s Italian Ristorante, or Waco Ale Company, we’d love to hear about your goals and help you get the right banking services to make them happen.
If you have any questions or would like to know more about our banking solutions, contact us at 254-840-2836
