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The Right Time to Switch Banks

Your company’s banking relationship is an important one that needs to be cultivated and strengthened. Every small business should cultivate a banking relationship that will help grow the business. Although changing financial institutions can be a difficult and somewhat risky task, there are certain situations where it is appropriate to switch banks.

The first question to ask when considering switching banks is whether your business is receiving the appropriate service. For example some small regional banks may have loan or other financial programs that are more relevant for small businesses in their local area than some of the large national banks. If your bank continues to turn down your application for a loan or a credit line it may be an indication that it is time to take your business elsewhere.

In an attempt to bring in new business, many banks will provide you with material on how to evaluate banking services, which means that it is a subject that many banking clients are interested in.  The following are some of the items that these financial institutions want you to consider when deciding whether you should switch banks.

Your businesses banking relationship can be as important as relationships with vendors or customers.  What your business says about you can also be an important part of your businesses reputation or business credibility.  This is especially true in recessionary periods or when the company is in financial difficulty.  It is hard to determine how a bank will act in the tough times if you don’t ask specific questions in advance.  Although you must believe that you are getting the best services for the money and that the bank will offer you credit when you need it, you may want to switch banks if you are insecure about it being your partner and having your business’ best interest in mind.

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