National Bank or Local/Regional Bank for SaaS Company Bank Account?

Kevin Lentz

March 9th, 2015

Just incorporated a new SaaS company and will be opening a bank account here in the next day or so. Previously, I had gone with Chase bank for a brick-and-mortar business, because I thought a national chain would be better. In hindsight, I wish I had gone local/regional for that business so I could develop a relationship with the bank manager/lender, foster local community, possibly get a line of credit, etc.

Now with a SaaS company, I'm not sure which way to go. National chain seems to make more sense, because I don't really see the value-add of a local bank given the business is not directly related to their local community. But I don't want to make the same mistake.

Thoughts on this?

Kevin Lentz

March 9th, 2015

Hi All -

The search functionality finally worked in FD, so I answered my own question. Can't seem to delete it though, but please disregard.

I think answers to the other similar discussions will suffice.


Edward Spenceley Senior Vice President,Commercial Banking, Government Contracting Specialist,Veterans' Transition Advocate

March 12th, 2015

Kevin, Great comments and insights. I believe that the banker not the bank is key to a successful banking relationship. Of course there are going to be products and services that global banks can offer that a regional or community bank is not going to be able to do. Also, for various reasons, there are rates that smaller banks can offer on deposit products that a larger bank may not be able to. Interview bankers not the banks themselves. The right banker from a large global bank can make the bank "feel small" and personal. That same banker can then offer all the assets and services around the world. If you discover a bank that has the capabilities your business needs, then try to find the right banker at that bank. If you are hoping to grow into a national and international company, it may be best to find the right local banker at that "big" bank who can navigate you through the system as you grow. You may still feel that smaller is better, and that could be, depending on the banker. As you "outgrow" that bank and its capabilities, larger regional, national and global banks will be happy to court you. Just remember you will be starting a new relationship at that point. I hope this is helpful. Edward