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Small Businesses Grab The Attention Of Bankers

Small business banking is drawing more attention from banks. Turns out, this market is a lot more lucrative than bankers once estimated. As small businesses take out loans at record speed, lenders are noticing this trend and competing for the small business customer in very unique ways.

As the economy picks up, so too are banking practices for small businesses. Where once small businesses were forced to pay high fees, bankers are cutting these fees and setting up special departments to handle small business services. Generally in the past, customer satisfaction among small businesses at banks has been low; banks are working to target this segment and win them over to their side.

These new banking practices are freeing up small businesses to concentrate on improving their business in other areas and become more successful. More businesses are using these outsourcing features rather than performing these time-draining tasks in house. As result, more banks are automatically including these BPOs (business practice outsourcings). Outside of traditional checking and credit cards for small businesses, banks are including special services suck as payroll services, 24-hour Internet banking, travel arrangements, and financial advice. For example, Bankrate.com~s Small Biz offers these features for small businesses:

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Find out the most current loan and credit card rates.
Receive advise in several areas such as finance, e-commerce, taxes and cash flow.
Control accounting online (pay bills, payroll outsourcing).

Another major bank that offers small business solutions is Bank of America. Small business services offered by Bank of America include several packages to help small businesses manage more effectively. Many of these packages offer financial advice and resource specialists. The Value Package, for example, offers overdraft protection, Paychex (Bank of America's payroll outsourcing service), merchant services, free small business money market savings account and more.

Since small businesses account for nearly 21% of a bank's market and roughly 41% of the U.S. private payroll comes from small businesses, even large banks are taking notice of the impact of small business on the economy. Perhaps large banks are finally taking notice due to many recent consolidations with smaller banks. Some banks are reporting an increase of as much as 91% in small business loans over the past couple years; most of these loans are to non-technical small businesses. As result, the opportunity for credit to small businesses has never been greater.

This is a win-win scenario for many small businesses since they have to pay less for activities that take up a lot of time inside the business and more businesses are succeeding through this extra help from banks. Banks are competing stronger for the attention of small businesses. Not only are American small businesses and banks partaking in this tend but also developed countries such as Australia and United Kingdom noticing improvements in small business banking. As more small business grab hold of the benefits of BPO, more banks are incorporating these special services into the small business banking packages.

Wouter Carrie is the owner and operator of Fluent Banking which is one of the leading resources for banking information on the internet. For more info visit his archive of articles: http://www.flbanking.com/archive/