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      For Your Small Business February 19, 2025

      A Business Owner’s Guide to Saving and Investing

      Small businesses employ nearly half of the American workforce and represent 43% of gross domestic product (GDP), creating jobs and wealth in every state. While they help to power our economy, many small business owners struggle to find their own solid financial footing, especially in the early years. They have their hands full with day-to-day logistics, making it difficult to save and invest for the business’ long-term future.

      What can make a positive difference is finding the right banking partner to help you improve your financial outlook and build future wealth. Not only does this lift a weight off your shoulders, but it also frees you up to do what you do best: build your business.

      Your business may be small, but your challenges aren’t

      Today’s small business owners face a particularly challenging operating environment — rising operating costs, growing competition with large corporations, labor market challenges, and market volatility. Compared to more established firms, newer small businesses have less access to capital and credit.

      It can be helpful to know you’re not alone. Across the wide range of small businesses — from local restaurants, retail stores, and nail salons to mechanics and medical practices — the same concerns surface again and again. In a recent survey of small business owners by the U.S. Chamber of Commerce, 41% cited access to capital as an issue that impacts their business, followed by inflation (36%), technology needs (22%), and supply chain issues (20%). Other top challenges include a worker shortage, customer demands, prompt payment on invoices, federal and state regulations, and crime.

      All of this leaves little space to build substantial savings or to make significant investments in future growth.

      For older owners, there is additional pressure with retirement on the horizon. More than two-thirds of small business owners plan to retire in the next two years. They typically have more limited retirement resources because they’ve been investing in the business. Some may have gotten a late start making regular contributions, which means those savings have had less time to grow. Now, the clock is ticking to build up their savings and plan for succession.

      If you are wrestling with these realities and you need someone to guide you, we can be that partner.

      Choose hassle-free saving and investing options

      Small business owners are looking for the full package: to achieve financial stability, grow their savings, and maximize their earnings.

      You may find a good place to start is with something small — such as a deposit you’d like to grow. This could become a safety net during an economic downturn or a step toward a future purchase or expansion.

      We have business savings accounts that offer competitive interest rates so you can earn while you save.

      Business Market Monitor

      Every owner needs a savings cushion. Maybe you anticipate a seasonal fluctuation, or you want to be prepared for an unexpected expense or emergency. Consider a money market account. With MMAs, you get a competitive interest rate, and the higher your balance, the more interest you earn. You’ll also enjoy full access to your funds whenever you need them.

      Certificate of Deposit (CD)

      Perhaps you want to upgrade your equipment or open a new location down the line. Owners saving up for future needs could open a CD, which offers a higher interest rate than regular savings accounts and guarantees it for a set period. We have short-term and long-term options available, so you can lock your money in for as long as you like — from a few months to several years.

      Enjoy collateral benefits

      MMAs and CDs have additional benefits too: Lenders tend to view them favorably because they demonstrate financial planning and stability. They can even be used as collateral if you’re applying for a business loan or line of credit to grow your business.

      You can also establish credit history with a business credit card. We offer options with features that can make a big difference to a small business, such as low rates, cash back, and flexible ways to redeem rewards. When cash flow and small lending needs arise, having one of our business credit cards in your wallet can help.

      Take advantage of customized banking solutions

      You and your business have unique financial aims to consider. When you want to talk through your short-term and long-term goals, our door is open. We work with small business owners who have questions about managing operating capital, setting aside money for tax payments, building an emergency fund, and planning for projects like new equipment or an expansion.

      Automated savings

      New small business owners are often caught off-guard by cash flow issues. This is understandable; you’re still figuring out the rhythm of your business. We can talk you through solutions, such as automated savings, which lets you sock away a set amount every month without even thinking about it. When you need it (for example, tax time) it will be there.

      Tax-advantaged accounts

      You can also build savings by taking advantage of tax credits and leveraging tax-advantaged accounts. We can talk you through how these accounts work. Tax-deferred accounts defer taxes until withdrawal. Contributions to tax-exempt accounts are taxed, but withdrawals are tax-free if all the account rules are followed.

      Growth strategy support

      As you build your business, we can be your planning partner. We offer growth strategy support at every stage. This can include local market analysis, financing options, and introductions to trusted service providers.

      Business succession

      If you are a seasoned entrepreneur ready to pass the torch, we can help you plan for succession. Owners turn to us with questions about business valuation, exit strategies, and financial planning. The decision to sell can be difficult and emotional. You’ll want a partner who can guide you through the process with ease — so you can enjoy the next stage of your life sooner.

      Connect with a banking partner

      Small businesses looking to grow their deposits and improve their financial security have a place to turn. Schedule an appointment to help select the right products for you and your business.

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