2013 HSBC Business Banking Review

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Grupet
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2013 HSBC Business Banking Review

Postby Grupet » Wed Oct 02, 2013 8:44 am

So I'm a small business owner and have a business account with HSBC (all my accounts are with HSBC). A week ago I received letter that they where gonna close my business account. I have no idea why, since I have money on the account and there is action on my account almost every day. I have NEVER overdrawn the account.

So I went to my local branch this morning, to ask what is going on, and he told me that they are chancing their strategy and focusing on International business instead. So I ask him, so are you telling me that small business owners no longer is welcome at HSBC? And after a few trying to talk around it, he told me yes.

I'm very chocked about this news, and I will of course move all my business and my families business to another bank asap.

Has anybody else experience this "new" HSBC strategy?

What other bank do people recommend for personal and business?

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whit
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Postby whit » Wed Oct 02, 2013 3:35 pm

You can only do business if you're up to stuff with regulations and, the regulations are pretty tough. People don't understand why things are the way they are, it's not always because the bank institutes are doing it for fun. They're doing it to stay in regulation and so they won't be shut down

Sometimes they may feel its not worth the trouble
Or who knows.

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Postby Obi-dan » Wed Oct 02, 2013 3:35 pm

Citi is re-strategizing as well. They announced they are only focusing on major metropolitan areas. It's a Brave New World.

I don't know the NY area but having worked for a Big 4 Bank I tell small business owners to find a good regional bank that can handle your needs. They will be most interested in your business.
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Postby DoingHomework » Wed Oct 02, 2013 3:59 pm

Wow, that sucks. Not a very nice way for them to thank you for your years of business!

Midori
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Postby Midori » Wed Oct 02, 2013 8:47 pm

BofA just re-strategized as well. Previously, their Small Business Banking would require a minimum balance of $5000 to waive fees, or you could waive your fees by using your business debit card once per calendar month. "Just buy yourself a drink from Sonic!" the banker told me when I was setting things up. :o)

In (August? September?) I got a letter saying, effective immediately, you needed to have a minimum balance of $5000, or a monthly account average of at least $3000, to avoid any fees. Or, you could waive the fee by spending $250/month on your business debit.

For a larger biz, that wouldn't be too onerous, but it didn't fit my spending patterns at all. And I'm not really interested in paying any fees I don't need to. ($16/month x 12 months = money I could spend on paint/lumber/locks/tile/plumbers!) :o)

For Biz #2, I ended up going with a local bank as an experiment. They only required a $500 minimum amount in the account to waive management fees. Citi was my other option... I want to say their minimum account balance for a no-fee small biz account was around $7k or something.

BofA charged me $3/month to get a scan of all my outgoing checks with my online banking. My local bank doesn't charge anything for scans of all my account activity on its website, plus images of all my incoming deposits and outgoing cashed checks on my monthly statement. $36/year is pretty negligible, but it's just an example of getting a valuable service for free with a small bank, and not with a big bank.

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Postby Ikarus » Wed Oct 02, 2013 10:06 pm

Never had a biz account with HSBC, only a starter credit card, which they closed due to non-use.

I did have a biz account with US Bank and was treated well. After seeing a steady flow of incoming cash, they began calling me to offer banking products, but I always kept things simple. I don't recall the fee structure being hard to keep up with.

If there's a US Bank branch local to you, perhaps check out their services?

I also wonder if Bluebird, or the like, has a biz account available? Their fee structures should be piece o' cake.
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Postby Midori » Wed Oct 02, 2013 10:59 pm

I do remember when I was shopping for a replacement bank, I thought about trying Ally and some of the other online-only banks. They were strictly personal-accounts-only. It might work for, say, a sole proprietor, but for someone who had an LLC, that took them out of the running.

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Postby whit » Thu Oct 03, 2013 12:37 am

no, it wouldn't even work for sole prop..not suppose to anyways, the way business accounts are set up is very different from personal and the way they're monitored, regulated, wahtever you want to call it--is different from personal account for obvious reasons.

sole props can have its own EIN or work off of the husband/wife or person's social. you can have a DBA with it.

LLC needs a EIN, and the articles of corp. or website validation (registered with the state), categorized either through members managed or manager managed.

you would also need a DBA if you want to accept payments in another name besides the one you're opening it with.

and so forth

I think if you're looking for a bank to open a business account, make very sure who you choose whether its a non-b&m (ING before capital one had business savings, not sure about checking but pretty sure they wouldn't offer just one w/o the other), community bank, credit union, or the big banks.

because from big to small they have people who could be not 100% sure of what they're doing, and in turn, in the future, give headaches.

also think carefully about your choices. yes, bank of america now charges if you don't meet certain criteria, but would it be more convenient for you? Do you do things more online then in person? Write a lot of checks? Accept a lot of cash? How is the traffic if you or your employee has to deposit cash and is it near (therefore safer to drop off)? What about going online, is it easy to navigate or a headache?

Things to consider when taking on a smaller bank with less footprint then a large one. I know business owners whose line is structured so they don't really need to visit the branch, and their business needs are not that complex, but good luck if they ever have lending needs that can't be helped by small banks (even though they do advertise lower rates, just wait until you get approved, have seen first hand--esp for those with bk or spotty credit--smaller banks will not be more likely to lend then big banks)

What types of banks are convenient for you? Near by that is..

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Postby djrez4 » Thu Oct 03, 2013 12:25 pm

I hate to tout a big-4 bank, but Chase has been good to me. If there's a branch convenient to you, consider them.

Throughout my banking relationship with Chase, I've tried to develop personal relationships with bankers at my local branches. That makes all the difference in the world. If you're at a small, local bank, but you don't take the time and effort to build the relationship, small and local doesn't matter.

I also like having all of my mortgage, auto loan and personal, business, and credit card accounts accessible with one login on a single website. To contrast, Citi can't even manage to get my different credit card accounts onto a single login because they're associated with different loyalty programs; I have to have separate logins for my AAdvantage and HHonors cards.

My last interaction with Chase: My personal checking has a $20 monthly fee. My business account has a $15 fee. But, the business account can waive the fee on the personal or vice versa. I previously had it set up so the business account waived the $20 personal account fee and I could avoid the business account fee by putting $1000 of spend on the Ink Bold. Now, we have a mortgage through Chase, which waives the personal checking account fee, so I wanted to switch to having the personal account waive the fee of the business account. This request would confuse the hell out of a level-one service rep. I happened to be talking to the Private Client rep in the branch (although I'm not a Private Client member) who was able to take care of it on the spot. Saves me $180 a year.
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Postby Grupet » Thu Oct 03, 2013 1:55 pm

Thanks for all the replies. Very interesting reading.
Locally I have a HSBC, Chase and a TD Bank. I was thinking about TD Bank, since I like that they are open 7 days a week.
But what djrez4 write about Chase got me interested in looking in to them as well.

So when I decide to move all my banking from HSBC to another bank, should i keep my credit card open at HSBC or should I close it? I only have one personal credit card at HSBC, rest of the HSBC cards are debit cards.
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