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A small business banking relationship is important for the growth of a small business. According to the U.S. Census Bureau, small businesses employ a little more than 1/3 of all employees and make up 90 percent of businesses in the United States. This means that the access to small business banking services is greater for small businesses than any other types of business. Knowing the facts about small business banking helps the small business owner make better banking decisions.
Types of Small Business Banks
There are various types of small business banks available. These include small business banking units and divisions housed inside larger commercial banks. There are also specialty banks designed to meet the capital needs of small business.
Small business banking goes beyond offering simple checking and savings account or certificates of deposit paying 3 to 3-1/2 percent. Small business banks understand the issues associated with small businesses and offer products and services designed to help small businesses grow and be competitive. The amount of services that a small business bank can offer to small business depends on the size of the market in which the small business bank operates and the needs of it's clientele.
Small Business Banking Services
In addition to basic business checking services, small business banks help small businesses manage their capital. They can provide business consulting services and help the small business look at ways at leveraging relationships in order to increase productivity and expand. The growth of a small business client is helpful to a small business bank.
Small business banking is an essential part of many traditional commercial banks. With a large percentage of business enterprises and employers being small businesses (defined as being less than 100 employees), there is a critical need that needs to met in order to continue to flow of business capital.
