Business owners and consumers alike should have a good understanding of the banking basics in order to make sure that the banking center is working to make them even more money. You should understand the types of banking services that you can find at various banks in order to find the best bank for your business.

When considering where you should do business banking, you don't need to compromise. Make sure that you think about the following factors when you choose a bank for small business banking:

1. The location of the bank. You may think that you'll only do online banking, but you should still choose a bank that is relatively convenient. It's better to do some transactions in person.

2. The services that the bank offers. Commercial banking institutions offer a wide variety of services and it's important to choose a bank that has everything that you are looking for. Things are easier when you only have to deal with one bank for all of your needs.

3. The fees that the bank charges. Most banks have several fees that apply to your banking account. Shop around to make sure that you get the lowest rates for your needs.

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Learn about merchant accounts and business banking services

Banking institutions want to work with business owners and they provide a variety of merchant services to qualified companies. These may include a business checking account, business credit card or the ability to accept credit card payments from your customers.

I recommend: MetLife offers information about how to determine what types of banking services you need to help you choose the right bank. OurShop.com details how merchant service accounts assess fees.

Learn to use business banking services for lending

Many business owners do not have the initial capital that the need to start their business. They often turn to banks in order to get a loan. Understand what you need to have in order to qualify.

I recommend: Check out the article on BusinessTown.com to learn about what banks look at when you apply for a loan. You may also be interested in the Small Business Administration's loan program, which helps new business owners get the financing they need.

Use financial banking institutions to invest your money wisely

You can take the profits that you make with your business and watch that money grow. Some banks also help you to invest your money, which can increase the amount of capital that you have to work with.

I recommend: The Motley Fool is a popular resource for learning about the basics of investing your money. Improving Your World offers a comparison of the biggest investment banks.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Before you sign up for a bank account, make sure to read the fine print. You don't want hidden charges to creep up on you. Some banks vary the fees based on how many transactions you have in a month, so make sure you choose the account that is right for your predicted activity.

Opening up a business bank account takes just minutes, but building a quality relationship with your bank can take years. Find a banking team that is truly excited about your business. The banking team should also be able to:

1. Explain its services clearly and how they can benefit your company.
2. Analyze your credit needs and explain if the bank can meet them.
3. Explain reporting requirements the bank will expect from you.
4. Provide fast access to bank team members when needed.
5. Allow your financial department to monitor details of your accounts online.
6. Refer you to alternate financing sources such as reputable leasing agents when the bank is unable to furnish additional funding.
7. Introduce you to prominent members of your local business community.

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Make a wish list of services you'd like

That list should include bank lending policies and interest rates charged and how they'll mesh with your company's anticipated financial needs. Also include less tangible factors, such as customer service, access to key executives and the quality of a bank's online account-management tools.

I recommend: Find the best banks for entrepreneurs, state-by-state, at Entrepreneur.com. Determine prevailing interest rates using this BusinessWeek survey.

Get your company's finances in order

The operating statements and other financial documentation you show a prospective banker should accurately reflect the health of your company. Before meeting a prospective banker huddle with your accountant or financial consultant to explore ways to put your company in its best financial light.

I recommend: Ask prospective bankers for the names of local financial consultants. This may make a banker more receptive to the financial data you eventually show them. Request your own Dun & Bradstreet report to see how outsiders view your company. Companies with simplified finances can use Entrepreneur.com's online calculators to analyze their own performance. Some banks may also request personal credit reports from you and your partners. Find them online at FreeCreditReport.com. See how you can improve your own creditworthiness using MSN's online debt consolidation calculator.

Choose between small and large banks

Large banks make money on volume and may offer streamlined lending procedures. Large banks may also offer state-of-the-art Web-based account-management services, allowing your accounting and financial departments to easily interface with your accounts. Small banks, for their part, may take a special interest in your company and view you as a valuable customer. Small banks also may be more connected to the local business community than their larger competitors.

I recommend: Compare small business banking services offered by national banks such as Bank of America, Wells Fargo and Wachovia with your local bank.

Follow through

Carefully nurture your banker relationships. Send quick emails on your company's recent successes. Warn bankers well in advance of potential problems to assure them you're addressing the situation.

I recommend: Consult Buyerzone.com's online primer on commercial lending. Yahoo! Small Business and the SBA present additional advice on small-business borrowing.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Hedge your bets if necessary: A single bank may not be able to meet all your financial needs but a combination of bankers and other service providers such as payroll processors might.
• •  Become a model customer by utilizing the bank's many services when possible, pay off loans ahead of time and let the bank manage any cash windfalls.
• •  Stay aware of staff changes at your bank that might result in your account being managed by someone new.
• •  Be receptive when rival bankers solicit your business. As the owner of your company you have an obligation to find the best terms.

Bank owners and workers should pay careful attention to banking news and trends so that they can stay afloat in any type of economy. All banks offer a wide variety of banking services and it's important to make sure that your bank is providing customers with everything they need.

Banking news and trends can also be helpful for any type of business owner. When choosing a bank for business banking, it's important to know what your options are. Before you open a bank account at any bank, make sure that you have made a thorough comparison.

Paying attention to the trends in the banking industry can:

1. Help you to make the most of your money. You want to make sure that your banking account is working for you. Look for accounts with high interest rates and low fees.

2. Help banks stay competitive in the marketplace. Banks should note what types of small business banking services other banks offer and make sure that they can meet or beat those offers.

3. Help banks to retain customers. Customers tend to do business with the company that best serves their needs. Knowledge of banking trends shows you where you can improve service.

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Start with websites and blogs to learn about commercial banking trends

Websites and blogs are an ideal resource for anyone that wants the most up-to-date information. Because site owners can update their sites as news happens, the news that you find on websites is often more current than that in magazines or books.

I recommend: American City Business Journals offers several articles related to commercial banking and other financial news. Fierce Finance offers daily articles. You can sign up for their newsletter to receive a daily email.

Subscribe to magazines to have banking news delivered to your door

Magazines are also a convenient way to learn about current trends in both in-person and online banking. A subscription ensures that you will never miss out on the latest.

I recommend: Banking Strategies is ideal for bank managers to gain insight into ways that they can improve their business. Business owners and managers in other industries may be interested in The Banker, which can help you learn how to make the most of your money.

Join a banking association to learn the latest about your bank's niche

Professional organizations also present an excellent source of banking news and trends. Join the organization that is most representative of the type of business that you do.

I recommend: The American Bankers Association is ideal for all types of banks. Some banks may want to focus their interests by joining the Consumer Bankers Association or the Mortgage Bankers Association.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Making sure that everyone in your banking center has access to the same information about industry news helps to foster a positive environment and encourages workers to share their ideas for improvement.

Anytime you deal with finances or investments, terms are bound to creep up that you don't fully understand. However, in order to make an informed decision about money matters, you have to understand all terms in documents and/or terms that are spoken.

Whether you are applying for a mortgage, opening a bank account or opening an investment account, you should be scrutinize the documents to ensure you understand each and every line of the document. This is true for truth in lending disclosures, privacy disclosures and account terms documents.

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Restrictive covenant

A restrictive covenant is an agreement between a buyer and a seller about specific aspects of a property. This can be things that must be done to a home or things that may not be done. For example, the bank can require that the exterior color of the home remain unchanged until the mortgage is paid in full.

I recommend: Investopedia offers an explanation of restrictive covenants. You can also find information on terms related to restrictive covenants on this website.

Passbook loan

A passbook loan is a loan secured by a CD or savings account. Unlike a regular loan, these usually don't involve a credit check or credit reporting.

I recommend: You can find detailed information about passbook loans at InvestorWords.com.

Average daily balance

To compute the average daily balance, you must add all of the actual daily balances then divide that total by the number of days in the billing cycle.

I recommend: Practical Money Skills for Life offers information on how an average daily balance is computed.

Finance charge

A finance charge is money that a bank or other lender charges to loan money. According to the Truth in Lending Act, any finance charges must be disclosed up front.

I recommend: Credit Card Clients offers an easy to understand explanation of finance charges, including some of the reasons they are applied to loans and credit extensions.

Cashier's check

A cashier's check is a check that is paid by a bank with money received from a customer prior to issuing the check. It can be likened to a pre-paid check.

I recommend: WiseGeek provides you with a look into cashier's checks in an easy to understand format.

Certificate of deposit

A certificate of deposit is a low interest bearing investment account. It is issued by a bank and is held for a specific duration before the interest is matured.

I recommend: The Wall Street Journal offers an in depth look into different CDs. This website offers a basic explanation of each type of CD.