7 Ways Business Can Reduce Bank Fees

If you’re a business owner, you know that managing expenses is a critical aspect of ensuring long-term profitability. One area where businesses can exert control and potentially save significant costs is by reducing bank fees. By understanding fee structures and exploring options previously unconsidered, businesses can implement strategies to optimize their financial operations.

1. Maintain a Higher Account Balance

While not always feasible for every business, maintaining a higher average daily operating balance can often lead to discounted fees. This strategy is worth considering for businesses with the financial capacity to do so. You may want to think about investing in a smart safe if depositing cash sooner into your account is important for your business. With a smart safe, cash is deposited and then accounted for in your bank account via provisional credit.

2. Monitor Account Activity

Regularly reviewing bank statements and account activity is essential to identify any unnecessary fees or discrepancies. Addressing errors promptly can help avoid additional charges.

3. Consolidate Accounts

Consider consolidating deposit accounts with multiple banks into accounts with one bank. With added purchasing power and higher balances, this can often result in fee discounts. Many banks offer incentives for businesses that streamline their banking services. This is another instance where using a smart safe solution can help businesses; by consolidating bank accounts under one service, you can save time and money.

4. Opt for Online Statements and Communication

Selecting electronic statements and communicating with your bank through online channels can help save costs associated with paper statements and mailed correspondence.

5. Automate Your Finances

Setting up automatic transfers and payments can help businesses avoid late fees and overdraft charges. Automation also aids in staying on top of finances, reducing the risk of incurring unnecessary fees.

6. Reevaluate Your Banking Relationship Periodically

The banking landscape is competitive, and offerings can change over time. Periodically reassess your banking relationship and compare it with other options in the market to ensure you are getting the best value for your business. In 2023, over 3,000 bank branches in the U.S. closed, reducing physical banking options for businesses. One way businesses have combatted this hurdle is through cash-in-transit services. With Loomis, for example, if you are not near the bank of your choice or your local bank branch has closed down, you can rely on Loomis CIT and vaulting services to get your cash where it needs to go with minimal fuss and fees.

7. Automate Your Cash Handling Processes

To further reduce bank fees, consider automating your cash handling with Loomis. Partnering with a dependable cash handling expert can eliminate the need for manual cash handling and associated bank fees. Additionally, Loomis can also optimize your cash flow with data-driven insights and real-time reporting that enables further fee reductions. 

Reducing bank fees requires diligence and proactive management of business finances. By implementing these strategies and staying informed about banking options, businesses can minimize the impact of fees on their bottom line, contributing to long-term financial health and sustainability. 

Looking for a comprehensive and secure cash handling solution for your business? Get started with Loomis today.