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Episode 31: How To Choose The Right Bank For Your Medical Business
Manage episode 297185571 series 2949848
Here are 3 key things that you want to assess when assessing a bank’s quality of service:
- You want a bank that demonstrates a firm understanding of a medical practice’s unique cash flow needs. As we all know, medical businesses function differently than a typical business. What services are offered to you and how much they cost is largely impacted by how familiar the financial institution is with medical businesses.
- You want to understand the bank’s responsiveness. For example, how quickly are deposits credited to your account? Are capital requirements met in a timely and efficient manner? For example, if you have a line of credit with them—how easy is it to access? If you need a loan—how many hoops do you need to jump through. Everything — from tracking an important wire transfer to helping finance an expansion project — should be addressed with speed and efficiency. The bank is there to make your life easier—not be a nosebleed.
- The bank should be easily accessible to answer questions; provide training on any account-related technologies; and offer insights into how it can meet your banking, financing and treasury management needs. Having a dedicated, single point of contact to address your businesses unique needs is crucial to understanding and anticipating challenges. Your financial partner should be easily accessible to answer questions.
Before deciding on a bank ask for references from other medical businesses.
Now I want to talk about products and services that you want your bank to offer in order to address the unique financial needs of your medical business.
Business checking
There are several factors that you are going to want to consider:
- Is a Minimum Balance Required?
- How quickly do You Have Access to the Funds?
- How Often Will You Make Withdrawals?
- How many deposits Will You Be Making?
Now that I’ve talked about banking (and essentially money coming into the bank), let’s talk about loans.
- Revolving line of credit- borrow as much or as little as you need to meet your working capital needs
- Term loan- to finance longer term investments like an expansion of your office or opening a new satellite office
Full suite of treasury management products and other services:
- Lockbox services
- Remote deposit capture
- Biller and payment solutions
- Fed EDI
- Fr
Want to hear more tips on how to start, run and grow your practice and related medical businesses, please sign up for my newsletter at https://www.thepracticebuildingmd.com
Join my FB group, The Private Medical Practice Academy.
Enroll in How To Start Your Own Practice and get the step-by-step process for opening your practice.
Join The Private Medical Practice Academy Membership for live group coaching, expert guest speakers and everything you need to know to start, grow and leverage your private practice. The course, How To Start Your Own Practice is included in the membership, as a bonus.
Rate, Review, & Follow on Apple Podcasts"I love Sandy Weitz and The Private Medical Practice Academy Podcast." <-- If that sounds like you, please consider rating and reviewing my show! This helps me support more people -- just like you -- move toward the practice they want . Click here, scroll to the bottom, tap to rate with five stars, and select “Write a Review.” Then be sure to let me know what you loved most about the episode!
78 episodes
Manage episode 297185571 series 2949848
Here are 3 key things that you want to assess when assessing a bank’s quality of service:
- You want a bank that demonstrates a firm understanding of a medical practice’s unique cash flow needs. As we all know, medical businesses function differently than a typical business. What services are offered to you and how much they cost is largely impacted by how familiar the financial institution is with medical businesses.
- You want to understand the bank’s responsiveness. For example, how quickly are deposits credited to your account? Are capital requirements met in a timely and efficient manner? For example, if you have a line of credit with them—how easy is it to access? If you need a loan—how many hoops do you need to jump through. Everything — from tracking an important wire transfer to helping finance an expansion project — should be addressed with speed and efficiency. The bank is there to make your life easier—not be a nosebleed.
- The bank should be easily accessible to answer questions; provide training on any account-related technologies; and offer insights into how it can meet your banking, financing and treasury management needs. Having a dedicated, single point of contact to address your businesses unique needs is crucial to understanding and anticipating challenges. Your financial partner should be easily accessible to answer questions.
Before deciding on a bank ask for references from other medical businesses.
Now I want to talk about products and services that you want your bank to offer in order to address the unique financial needs of your medical business.
Business checking
There are several factors that you are going to want to consider:
- Is a Minimum Balance Required?
- How quickly do You Have Access to the Funds?
- How Often Will You Make Withdrawals?
- How many deposits Will You Be Making?
Now that I’ve talked about banking (and essentially money coming into the bank), let’s talk about loans.
- Revolving line of credit- borrow as much or as little as you need to meet your working capital needs
- Term loan- to finance longer term investments like an expansion of your office or opening a new satellite office
Full suite of treasury management products and other services:
- Lockbox services
- Remote deposit capture
- Biller and payment solutions
- Fed EDI
- Fr
Want to hear more tips on how to start, run and grow your practice and related medical businesses, please sign up for my newsletter at https://www.thepracticebuildingmd.com
Join my FB group, The Private Medical Practice Academy.
Enroll in How To Start Your Own Practice and get the step-by-step process for opening your practice.
Join The Private Medical Practice Academy Membership for live group coaching, expert guest speakers and everything you need to know to start, grow and leverage your private practice. The course, How To Start Your Own Practice is included in the membership, as a bonus.
Rate, Review, & Follow on Apple Podcasts"I love Sandy Weitz and The Private Medical Practice Academy Podcast." <-- If that sounds like you, please consider rating and reviewing my show! This helps me support more people -- just like you -- move toward the practice they want . Click here, scroll to the bottom, tap to rate with five stars, and select “Write a Review.” Then be sure to let me know what you loved most about the episode!
78 episodes
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