By Brian Richter, Senior Business Banking Officer
4/4/2023
As a small business owner, you already have a long to-do list. Developing a good relationship with your bank can help you check off a few of those tasks. Our financial team can help you launch your business. From opening a new checking account to discussing your lending needs, we have you covered. Learn more about the importance of forming a business relationship with us, as well as how to leverage that relationship to benefit your business.
Why form a business relationship with a community bank like Peoples Bank?
Community banks make more than 60% of small business loans, often because they are willing to work with small businesses that the big banks are not interested in. However, the businesses they make loans to often already have a deposit account at the bank and have developed a relationship with a business banker. That is why you do not want to wait until you need financing to find a bank; open a business checking account now and get to know the business banking team.
In addition to helping with financing, forming a relationship with one of our business bankers gives you access to expertise. For example, it’s a good way to get insight into your local market, receive advice on banking products that might benefit your business, and essentially have access to a financial expert who is an extension of your own internal team. When it comes to the choice of a local or national bank, we recommend staying local with Peoples Bank for the most local expertise for your market.
Which bank products are a good fit for your business?
Whatever stage your business is in, we can recommend a bank product to fit the needs of your company.
- Business Loans - Loans are useful for financing a variety of business needs. Learn more about business loans and ag loans, such as operating lines of credit used to supplement seasonal cash flow, commercial term loans used to purchase equipment and vehicles, or real estate loans.
- Deposit Accounts - Deposit accounts are vital for growing your capital. Choose from free to interest-earning business checking accounts to pay for expenses. Once you become profitable, stash extra funds in a Business Savings account for those unexpected expenses.
- Other Financial Services - As your business grows, additional services can help you manage day-to-day operations more efficiently. Use cash management or remote deposit to save time and reduce the cost of managing your cash flow. With Merchant Processing, you can accept credit and debit cards from your customers.
Create a business plan and research your market
No matter what type of business you are starting, you will need to develop a business plan. Part of this process will consist of determining your product or service, researching your market to understand the demand for this product or service, competitors in your area, determining your expenses and resources needed, etc. It is best to have a business plan created before you start to look for funding. Your business plan can be presented to the lender to prove the efficacy of your idea.
If you are planning to start a business in Iowa, check out additional resources on creating a business plan, including templates and examples, by visiting the Des Moines SCORE website. Once you have a relationship with Peoples Bank, you can ask us for feedback on your business plan.
Determine your financing sources
Once you have a business plan in place, you will have a better idea of the amount of funding needed to get your business off the ground. At this point, you should be ready to secure funding for your funding can come from a variety of sources including your own personal investments, private investments from individuals you know, and small business grants Peoples Bank can assist with this process. One of our business bankers can recommend loan products to support your needs based on your plan.
Open the necessary accounts
You will need to establish a business checking accounts in order to begin paying for your initial expenses. Keeping your personal and business finances separate is important and will make your life. We can help determine the best accounts to fit your business’s specific needs From a checking account for payroll to a money market account for upcoming projects, we have you covered
Choose a location for your business
If your business requires an office, warehouse, farmland, storefront, or other location, you will need to research your local real estate market to find something that is within your budget. This may require you to secure a real estate loan to purchase or build your business. Your Peoples Bank Business Banker can help you explore real estate and construction loans for this need.
Jumpstart your business with Peoples Bank!
At Peoples Bank, our business banking team is devoted to helping you grow your business or ag operation. Our ag and business bankers have decades of local expertise. Every day, we help local businesses meet their banking needs and we’re ready to help you, too! To get started, give us a call, or stop by one of our ten locations in Rock Valley, Lester, Sioux Center, Akron, Sheldon, and Hawarden, Hinton, & Sioux City, Iowa; Jasper, Minnesota; & North Sioux City, South Dakota.
