Small business owners face a lot of challenges that banks can take advantage of. For example, smaller companies don’t have the same purchasing power as larger organizations and so they often deal with worse customer service from financial institutions who are just looking to make their jobs easier by avoiding additional work or responsibilities toward these clients—this is unfair!
A small business in its nascent stage needs proper expense management to grow and evolve because banks don’t cater well.
Invoicera is an affordable and easy-to use cloud based invoicing software that offers all the features a small business owner needs in its early stages. Unlike traditional banks, Invoicera has an exceptional expense management system which categorizes expenses so you can focus on running your company efficiently!
Reasons Why Banks Don’t Fit For Work for Small Businesses:
- Weak Cash flow
Even though small businesses should have enough cash flow to cover their multiple charges, banks are not fond of working with these companies because the owners might be running low or out. Banks also prefer that you maintain a healthy balance in your account and take care when making payments so as not create any additional fees on top from having insufficient funds during payment processing time
- Fees
The average small business owner pays $20 in monthly fees, including service and maintenance fees. A report from ACI Payments even suggests the number of bank charges can be as much at 450 per year! These are typically too high on cash flow-ridden businesses with fluctuating revenue streams which is why banks tend not put extra effort into working for these types of companies.
Source: Why Traditional Banks Don’t Work Hard Enough for Small Businesses?
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