Selecting the right banking solution is a critical decision for business owners. It affects not only the efficiency of day-to-day operations but also long-term growth, access to capital, and financial management. Based on our experience working with small businesses, we highly recommend using a two-bank approach: one local community bank combined with Relay, a modern business banking and money management platform. This strategy offers the best of both worlds by leveraging the personal relationships and lending solutions of a community bank while taking advantage of Relay’s advanced tools for managing cash flow and streamlining business finances.
The Value of a Local Community Bank
Community banks are an excellent option for small businesses looking for personalized support and local expertise. Here’s why:
Building Strong Local Relationships: Community banks focus on local businesses and communities, allowing you to build strong, relationship-based banking connections. These relationships often result in easier access to credit and more flexible lending options, as local banks have a vested interest in supporting businesses in their area.
Personalized Service: Community banks are known for offering personalized service tailored to your specific needs. Whether you need a loan, want to discuss your cash flow strategy, or require specialized services, community banks can often provide more tailored solutions than larger institutions.
Local Expertise and Faster Decision-Making: These banks understand the local economy and business environment. Their knowledge can be invaluable when seeking financial advice or products. Additionally, because decision-making is typically localized, you can expect faster responses when applying for loans or resolving issues.
Community Support: Community banks reinvest in the local economy, supporting initiatives that benefit local businesses. This creates an opportunity for your business to be part of a supportive local network, with access to resources that go beyond financial services.
Relay: A Modern Business Banking and Money Management Platform
While local banks are excellent for relationship-building and local lending solutions, Relay enhances your business operations with digital-first tools for managing your business’s finances. Relay is not a bank but a business banking and money management platform powered by Thread Bank, an FDIC-insured institution.
No Account Fees or Minimum Balances: Relay has no monthly fees, overdraft fees, or minimum balance requirements, making it a cost-effective solution for managing business finances.
Digital-First with Full Control: As a digital platform, Relay allows business owners to open accounts, issue Visa® debit cards, send payments, and manage their cash flow—all without needing to visit a branch. It’s accessible anywhere through their app and website. You can issue, freeze, or terminate cards and manage accounts without needing to contact support.
Up to 20 Checking and Savings Accounts: Relay allows businesses to create up to 20 individual checking accounts, perfect for organizing your finances. You can easily separate income for specific expenses like taxes, payroll, or operations. Additionally, Relay offers savings accounts with interest rates between 1% and 3% APY, helping you maximize your cash reserves.
Compartmentalized Finances and Cash Flow Automation: Relay’s ability to segment your business finances helps you better track income and expenses. Business owners using the Profit First method will find it especially useful for creating separate accounts for each financial goal, allowing for percentage-based cash allocations.
Enhanced Payments and Compliance: With Relay, you can pay contractors via ACH, wire transfer, or check, and the platform helps collect and store W-9 forms, making tax compliance simpler. Relay provides clean, detailed transaction data, which helps streamline bookkeeping by ensuring accurate payment records.
If you’re interested in learning more about Relay, visit Relay's website or sign up directly using our affiliate link: https://app.relayfi.com/register?referralcode=everett.
Features for Accountants and Outsourced Financial Management
One of Relay’s standout features is its collaboration tools, which are designed to simplify financial management for businesses working with accountants or bookkeepers.
Accountant Access for Seamless Collaboration: As your accountant, we have our own unique Relay login, allowing us to securely access your accounts, view transactions, and manage payments on your behalf. This ensures accountability and transparency, as all transactions are linked to the authorized user, aiding in audit trails and financial oversight.
Bill Payments and Approvals: With Relay’s paid version (Relay Pro), businesses can create bill approval workflows. This means you can designate team members to approve invoices before we, as your accountant, pay them. Relay Pro also syncs bills directly from QuickBooks Online (QBO), streamlining the entire accounts payable process and improving your cash flow management.
Debit Cards for Employees: Relay allows you to issue up to 50 Visa® debit cards, including both physical and virtual options, for your team. Each card can be assigned to a specific employee or business purpose, with spending limits set for each card. This gives you control over your team’s expenses while providing ultra-detailed transaction data to track spending in real time.
How a Two-Bank Strategy Works for Your Business
Using both a local community bank and Relay as your business banking and money management platform ensures you can enjoy the benefits of both personalized support and modern financial tools.
Local Lending and Personal Service from Community Banks: Your community bank will provide you with local insights, personalized financial advice, and flexible lending solutions that help your business grow. The ability to walk into a local branch and get immediate support can be invaluable in managing your financial needs.
Relay for Cash Flow Management and Efficiency: Relay, as your digital business banking platform, enhances your financial operations with its modern tools. Whether it’s setting up multiple accounts for better cash organization, issuing debit cards for team members, or giving your accountant secure access to manage your payments, Relay provides the tech-driven infrastructure your business needs to thrive.
Ready to make the switch? Sign up for Relay here: https://app.relayfi.com/register?referralcode=everett.
Disclosure:
Relay is a financial technology company, not a bank. Banking services and FDIC insurance are provided through Thread Bank, Member FDIC. The Relay Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa® debit cards are accepted.
Disclaimer: This article is educational content and not intended to be used as financial, legal, or tax advice or to replace such advice. The views expressed here are not necessarily the views of Everett Consulting Services, LLC. Please seek out and receive services from a qualified professional before making any financial decisions.
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