6 ways to avoid banking fees for your business

Key takeaways:

• When it comes to fees, a few simple tweaks can help you save money for your business.
• Open communication with your banker can help you optimize your business’ cash flow to avoid fees.   
• By using the right business account, you can help ensure your business doesn’t frequently face fees.

You’re constantly crunching the numbers for your business, and you’ve likely identified several methods for saving money. But how much are you paying attention to the small numbers? Those small sums can quickly add up to be a large drop in the bucket.

What can you do to avoid the small fees your business typically pays? We have a few tips to help your business:

• Ensure you have the right account – With the right account, you shouldn’t have to worry about fees. Banks, such as MidWestOne, offer a variety of business checking accounts to accommodate businesses of various sizes, profits and organization levels. You can even compare accounts to find the right one for your business. For example, if you’re just starting out, you could open a business checking account and avoid the $0.30 fee by not going over the limit of 100 debits, credits and deposited items each month.
• Set up automatic payments: Avoid missing payments by setting up automatic withdrawals. However, remember to keep an eye on your account balance so you don’t accidentally overdraw it and end up paying an overdraft fee. We only recommend enabling automatic payments if you’re sure of your cash flow.
• Make it one loan: Do you have multiple loans for your business? Having separate loans for your business, equipment and office space can make things overwhelming with multiple payments and different pay dates to keep in mind. Work with your banker to refinance those separate loans into one loan.
• Manage the time of your cash flow: The timing of your cash flow matters. Do you receive payments at the end of the month, but your business loan payment is due before then when cash is still low? Work with your banker to adjust timing to optimize your cash flow, so you’re making payments when your account is at its best.
• Review your finances: Don’t overdraft your account or try to make a payment that depletes your account. If you do so, you could be at risk for a fee. If you opted in for overdraft services, you’ll be alerted before you make a payment that would overdraw your account. If you didn’t select that option, a payment you’re trying to make may not go through. Review your online statements and stay aware of how much is in your account.
• Talk with your banker – If you’re paying a lot of fees, you should consider talking with your banker about how to reduce or avoid those fees altogether. If you’re not making any headway on this front, it may be time to look at other banks. At MidWestOne, bankers build relationships on trust so each customer can feel empowered to successfully run a business.

By having an open dialogue with your banker, you can figure out how to better manage your business’ cash flow. If you have questions about your business account, visit your local MidWestOne branch.

MidWestOne Bank does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.