For emerging CPG founders, choosing the right banking partner can significantly impact your financial management, growth, and day-to-day operations. Online banking has become a popular choice, especially in the CPG space. The convenience, flexibility, and lower fees associated with online banks make them attractive alternatives to traditional banks. However, with so many options available, it’s essential to know what to look for in an online bank to ensure it meets your business’s needs.

Here are five key factors to consider when choosing an online bank.

1. User-Friendly Technology and Mobile Access

CPG founders are often juggling various aspects of their businesses, so it’s important that your online bank offers an intuitive platform with robust mobile access. You should be able to manage your accounts easily, whether you’re at your desk or on the go.

Look for these features:

• Mobile banking apps: Check balances, deposit checks, and initiate transfers from your smartphone or tablet.
• Real-time alerts: Instant notifications for transactions, deposits, and withdrawals.
• Recurring payments and transfers: Automate these tasks to save time and stay on top of your finances.
• Account integrations: Ensure your bank can sync with accounting software like QuickBooks or Xero, simplifying bookkeeping.

User-friendly apps and online platforms give you the ability to stay on top of your finances, even when managing the day-to-day demands of running your business.

2. Access to Working Capital and Financing Options

For CPG businesses, access to working capital is crucial for growth. Online banks are often more flexible than traditional banks in offering loans, lines of credit, and other financing solutions. They often provide dynamic lines of credit that are tied to accounts receivable or projected future sales, which is especially helpful for growing businesses with delayed payments from retailers or distributors.

Key features to consider:

• Receivable-based credit lines: Helps you borrow against outstanding invoices.
• Easy loan application process: Look for faster approvals and a simpler application process.
• Competitive interest rates: Compare rates to ensure you’re getting the best deal.
• Special financing options: These can include invoice factoring, equipment loans, or working capital loans tailored to small businesses.

3. Bill Pay, Invoicing, and Vendor Management

CPG businesses often deal with multiple vendors and suppliers, so having a seamless and automated system to handle payments and invoices is critical. Online banks should offer strong bill pay and vendor management tools to make your financial operations as smooth as possible.

Important tools include:

• Automated bill pay: Set up recurring payments to vendors and suppliers to avoid missing deadlines.
• Invoicing capabilities: An integrated system to send and track invoices, helping to ensure timely payments.
• Vendor management: Organize your vendors, track payments, and manage terms all from one dashboard.

These features help reduce administrative burden and keep cash flow running smoothly, which is vital for managing supply chains and ensuring that your business has the resources it needs.

4. Virtual Cards and Expense Management

Expense management is a key part of running a business, and virtual cards offer a convenient and secure way to make payments without waiting for a physical card to arrive. Online banks often provide virtual cards that can be issued instantly and used to manage everyday business expenses.

Key features to look for:

• Instant card issuance: Get virtual cards immediately upon opening an account.
• Expense tracking: Monitor spending on virtual cards in real time and set individual spending limits for employees or different business departments.
• Secure payments: Virtual cards are often safer than physical ones, as they can be quickly deactivated or replaced if compromised.

Virtual cards are a practical solution for CPG businesses that need to manage digital advertising, vendor payments, and other expenses without the hassle of physical cards.

5. Customer Support and Service

Even in the digital world, strong customer service is critical for any banking relationship. While online banks may not have physical branches, they should offer responsive and accessible customer support through various channels like phone, chat, or email.

Consider the following:

• 24/7 availability: Having access to support at all times ensures that you can resolve issues promptly.
• Multiple support channels: Options like live chat, phone support, and email help provide flexibility when you need assistance.
• Dedicated account managers: Some online banks offer specialized support for business clients, which can be invaluable when navigating complex financial needs.

Quality customer support ensures you can keep your business running smoothly, addressing any banking issues that arise quickly and efficiently.

Aion is an ideal online banking partner for CPG founders who need flexible financial tools to manage their business operations. From dynamic lines of credit based on receivables to robust invoicing, bill pay, and vendor management tools, Aion offers a comprehensive suite of services designed to meet the unique needs of CPG brands. By choosing an online bank like Aion, you can simplify your finances, improve cash flow management, and focus on scaling your business.