Lone Star National Bank
Let’s Do Business: 4 Benefits of Owning a Business Checking Account
Sep 12, 2016
If you manage a small business, juggling staff, customers and cash flows are some things that have to be dealt with head-on. It can be hard, but if you're looking to make things easier on yourself, consider looking into a Lone Star National Bank Business Savings Account, which can help your business run things more smoothly.
Saving for the future is not only a great idea, it’s also a smart move for your business’s financial interests. Having a strategy for your company’s savings can help avoid paying interest when making a large purchase, enable you to expand and grow when the time is right, and can also be a financial cushion when the economy is rough.
Saving for a Big Purchase
When getting ready to make a big purchase for their company, the first thing most owners think about is doing it with credit. With a business savings account, you can pay with cash with no added interest, and some vendors will even give you a quick rebate or discount.
However, keep in mind the short-term impact of using money from your business’s working capital for a big purchase. Will using this money impact your business to meet other obligations such as a loan payment or payroll? Make sure to have a balanced savings plan in case you’ll need to replace assets so that your business’s savings can grow in the long term.
A Nice Financial Cushion
A business owner will know the ups and downs of a seasonal sales cycle, and some industries, such as manufacturing and agriculture, see a big difference in revenue during high and low seasons. If your business is susceptible to a large amount of periodical downtimes, then it’s important to have a savings account.
It’s always a good idea to plan for the unexpected even if your business has little downtimes during the year. Just like households having sufficient savings for an emergency to meet monthly expenses, your business should have the same form of backup.
Grow and Expand Your Business
The opportunity to grow and expand your business can present itself at any moment, or you may have already made plans to expand it. Depending on how quickly you want to have access to your savings, there are many options for businesses to go above and beyond the traditional savings or money market route.
If you have funds from your business that can be tied up for a longer period of time, a Certificate of Deposit (CD) will certainly help you earn more interest. By taking advantage of CDs, differing maturity dates will make your savings more flexible while generating more interest on income. Utilizing the variety of options we have at LNSB will help your business grow and allow for maximum flexibility when you're ready to expand.
Improve Your Credit Ratings
If you have money in your business savings account, it will improve your chances of being approved for a small loan. Financial institutions will have an easier time giving you the green light for a loan since a business savings account proves that you have funds to pay off any sort of debt. Plus, having money in your business savings account can actually improve your credit score.
We’re Here to Help
No matter what business goals you have in mind for the future, our business solutions offer a variety of benefits. Whether it’s having a solid financial cushion in place for long-term stability or saving for a big purchase to help your business expand, Lone Star National Bank has a variety of money markets, CDs and business savings accounts for small or big companies - and we’d be more than happy to guide you to the right solution. Contact our bank in San Antonio today to find our what we can do for you!