A person I met told me that starting a business can be so rough as it can be difficult to get any kind of funding or financial support from a bank since you donâ€™t have an established reputation or that your income is considered too low which makes you a huge risk for them. Basically, many people are constantly trying to convince their banking provider to provide them with services or support that they need.
If there is one thing that I learned when it comes to business banking is that when it comes to things that require some kind of financial background check to be approved, some places try to play it too safe from their end and so you shouldnâ€™t be afraid to ask a different bank or get discouraged over it that no one will approve you. I personally never use loans, but I did have an interesting experience just to demonstrate how some banks just have a very one dimensional by the book system.
When I was starting out I decided to choose a different bank than the one I was using for my personal account to get a better feel of the pros and cons in banking with certain places. Now for myself I was in a different situation than most as I did not need to borrow any money since I was frugal with my money nor did I have any kind of debt. But what I decided to do was to get another credit card to better separate business and personal purchases. When I applied for the credit card through the new bank, they told me that I was approved, except I would have to deposit the same amount of money as my maximum credit limit that they gave me as form of credit deposit.
To me that was insane considering how my credit score was very high as I always paid things in full and on time with the fact that I had a large pool of funds. The other kick was that the credit limit they gave me was significantly lower than what my personal bank provider gave me for my personal credit card which to me made absolutely no sense. Their answer was that I was too new and had no history with them. From there I could of just labeled all business banking accounts as the same and that it was just me. Instead, I asked other places and sure enough they were more than willing to process everything and offered to do more. Turns out that particular bank really was just that paranoid with new people.
So if you are one of those people starting out, donâ€™t get too discouraged over the decisions of certain banks as that is why we have choices and really they should be the ones wanting to get your business while wanting to help you out in as many ways as possible within reason.