Delivering tailored debt and deposit solutions to venture and PE-backed startups to fuel innovation and growth.
Banking for tech startups
In the fast-paced world of tech startups, finding the right banking partner is crucial. A bank like Customers Bank that understands the unique challenges of the tech industry can provide the financial tools and guidance necessary for your business to thrive.
When choosing a bank, consider factors such as their experience working with tech startups, the range of services they offer, and their reputation in the industry. A bank specializing in working with tech startups is more likely to have a deep understanding of your business model and can offer tailored solutions to meet your needs.
Since 2009, Customers Bank has served startups and other small businesses with outstanding customer service and the convenience of digital banking. We offer expert advice, technologies, and services for our clients across various industries. In the technology arena, we focus on:
- Software as a Service (SaaS)
- Tech-enabled services
- EdTech and others
By choosing the right bank, you won’t just gain a financial partner but a strategic ally who can help propel your tech startup forward.
Look for essential digital tools
Access to banking solutions such as online banking, mobile banking, and payment processing services will allow you to manage your finances efficiently and focus on your core business activities.
Online & mobile banking – Technology startups can benefit significantly from utilizing online and mobile banking. It offers the convenience of managing finances from any location at any time. In addition, real-time updates on account balances and transaction history provide an efficient way to keep track of expenses and income.
Cash management – Customers Bank furnishes small businesses with automated financial management services, such as the following:
- ACH & wire transfers
- Insured cash sweeps ®
- SWIFT Messaging
- Bill pay
- Positive pay/Fraud protection
- Remote check deposit & lockbox services
- Letters of credit
Access to funding for tech startups
By understanding the unique requirements of your business, you can find a bank that aligns with your goals and supports your growth. One common challenge is limited access to funding. Many tech startups require external funding to fuel growth, but some financial institutions may hesitate to provide loans or credit lines to startups without an established track record.
Term loans: Business term loans from Customers Bank are an excellent funding option to help you afford significant expenditures. These loans offer excellent flexibility, with few restrictions on how you can use the funds. Loan amounts and terms are typically determined based on your credit history, the amount borrowed, and the intended use of the loan.
Lines of credit: A line of credit is a popular funding source because it operates more like a credit card. You can use the funds for various expenses such as cash flow, payroll, inventory, equipment repair, etc. Typically, you are only required to pay interest on the amount you withdraw. As you pay down the principal, the credit line becomes available again, allowing you to reuse the funds again and again without submitting a new loan application.
7(A) SBA loans: This is the SBA’s primary and most popular type of business financing. It can be used for equipment, real estate, or inventory expenses up to $5 million (or up to $500,000 with an SBA Express loan). Most 7(A) borrowers have been in business for at least two years. There are several types of 7(A) loan loans, so speak with a Customers Bank SBA loan expert to decide which type may be best for your business.
Customers Bank has extensive experience in banking solutions for tech startups. Contact us today to learn how we can help you secure the financing and services you need to grow and thrive.