First compare bank’s ratings. Two good online resources to check for a bank’s financial stability are www.bankrate.com and www.FDIC.gov.
Second, ensure the bank carries FDIC insurance and has opted in for unlimited coverage on non-interest bearing accounts. Financial stability is shown by a high capital to asset ration and a strong liquidity position. If a bank is loaned up, it will have a difficult time meeting credit needs whan a business needs to borrow money.
Today’s economic times have made liquidity a big issue and is making credit for small businesses tougher to obtain.
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