While all banks are different and have varying terms and conditions, most banks do allow for at least some level of negotiation when it comes to business bank account terms.
Normally, banks offer a standard package, but there are often opportunities for certain features to be customised to suit specific businesses’ needs and preferences – especially if they’re big, important, long-term clients.
This may involve things like changing (most likely increasing) transaction limits, enhancing interest rates or lowering fees.
Of course, banks aren’t obligated to negotiate terms, but if businesses are able to properly demonstrate their value as clients, whether it’s in terms of financial stability or long-term banking potential, they’re more likely to have some leverage and be successful. Another way to gain a little more leverage is to ensure that you’re aware of what competitors are offering.
How To Negotiate Business Bank Account Terms
Negotiations of any type are always complicated and difficult to navigate, and generally speaking, some people are just better at it than others. But that doesn’t have to be the case.
If you’re in position in which you would like negotiate some of the terms of a potential business bank account, there are actually several thing ou can do to try and improve your chances of being successful.
Do Your Research
The first step to embarking on a negotiation journey is to make sure you’ve done your research. This means learning all about the bank you’re interested in, its offerings and what competitors have to offer too. And, if you really want to be successful in your endeavours, you need to do this properly.
That means looking into other financial institutions and their offerings in-depth – comparing fees, interest rates, transaction limits and services offered. Not only will this give you a good idea of what the industry standard is, it will also give you some leverage later on when you’re in the actual negotiation phase.
Put Together a Case for Your Business
Make a case for your business and ensure that you’re ready and able to demonstrate to the bank why your business is valuable to them. For instance, make sure you can emphasise your company’s financial stability, the volume of transactions you bring in and perhaps the company’s potential for long-term growth.
A good way to do this is to use your company’s history to make yourself more appealing. For instance, if you have a history with the bank, remind them how you’ve handled things responsibly in the past. Make sure you bring up any potential future banking needs you may have that they could possibly benefit from – things like loans or investments.
Make Specific Requests
If you’re going to negotiate with a bank, the best chance you have of being successful is if you’re able to be clear about what you want.
A few specific requests that may be on the cards including reducing (or even waiving) some fees – this could be maintenance fees, ATM fees or even transaction fees, depending on your business. This is more likely if you’re able to bring in a substantial volume of business.
Other common requests that come up include adjustments of transaction limits – normally, companies request for limits to be increased – or requests for better interest rates.
Use Competitor Offers for Leverage
Since you have already done your research on what competitors are offering, use that to gain some leverage in the negotiation process. If they are offering better fees or terms, make sure you bring that up to give the bank the opportunity to match the offer.
Don’t Be Afraid to Walk Away
There’s no shame in walking away if the bank isn’t able to offer you what you want and need. Just because you’ve entered the negotiation phase doesn’t mean you need to accept just anything. In fact, in some cases, walking away could be exactly what you need to do to lock them in.
Of course, this doesn’t always happen, so you need to be prepared to walk away knowing that this could close the door on the opportunity.
Cultivate a Strong Relationship
The best thing you can do, whether your negotiations are successful or not, is work hard to develop a strong relationship with the bank.
