By Busola Bamidele
Managing money as an entrepreneur isn't just about earning, it's about knowing where every naira goes. Banks are essential, but their terms and fees can quietly drain your hard-earned income if you're not paying attention. Here are five crucial banking truths that can help small business owners stay financially smart and avoid costly surprises.
The Fine Print Matters
That "zero-fee" account? It might come with hidden charges or conditions that kick in after a few months. Always read the terms carefully before committing to any banking service.
Promotional Rates Don't Last Forever
Many entrepreneurs get drawn in by low-interest loans or high-yield savings accounts, only to find the rates jump after the promo period ends. Stay informed about when changes take effect to avoid unexpected expenses.
"Free" Accounts Often Have Conditions
Banks might waive fees if you maintain a minimum balance, but falling below that threshold could trigger charges. Keep track of the requirements to avoid paying unnecessary fees.
You Can Negotiate More Than You Think
Don't accept every bank fee as final. Whether it's loan terms, account maintenance fees, or transaction charges, a simple call to your bank can sometimes lead to better deals.
Banks Profit from What You Don't Know
Lack of financial awareness is how banks make money. The more informed you are, the better you can navigate loans, fees, and account terms to keep more cash in your business.
Final Thoughts
Financial literacy isn't about outsmarting banks. it's about making sure they don't outsmart you. Review your bank statements regularly, question unexpected fees, and negotiate where possible.
A little knowledge can shift the power from the bank to you, helping you build a stronger, more financially secure business.
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