Banking Part l

Today we begin our segment on small business and banking. We are taking a look at TD Canada Trust and what they can provide individuals when starting up a business, needing a business loan, credit card etc. We had the privilege of meeting with Cheryl Cherneske who is an account manager with TD for small business banking where she was able to answer any questions we had on the topic. It is important to note that each individual and business is different with many variations. Setting up a meeting to go over your exact needs will give you the best plan.

 

Fees and accounts:

  • 5 total plans with no balance requirements. TD has no judgment.
Business plan A 19.00/month        20 Transactions

(1.25 each additional transaction)

50 Deposit Items

($0.22 each additional deposit)

$5,000 Cash Deposits

($2.50 per $1000 additional)

Fee rebate with balance of $20,000
Business plan B $39.00/month 60 Transactions

(1.25 each additional transaction)

50 Deposit Items

($0.22 each additional deposit)

$5,000 Cash Deposits

($2.50 per $1000 additional)

Fee rebate with balance of $35,000
Business plan C $72.00/month 120 Transactions

(1.25 each additional transaction)

50 Deposit Items

($0.22 each additional deposit)

$5,000 Cash Deposits

($2.50 per $1000 additional)

Fee rebate with balance of $45,000
TD Unlimited Business Plan $125.00/month Unlimited Transactions Unlimited Deposit Items $25,000 Cash Deposits Fee rebate with balance of $65,000
TD Basic Business Plan $5.00/month 5 Transactions

($1.25 after per transaction)

5 Deposits

($0.22 each for additional activity)

$2.50 per $1000

These accounts also allow receiving and sending EMT’s. There is a fee of $1.50 to send if you do not have the Unlimited Business Plan. They also offer self serve options where all of your banking can be done online. For example you can get a cheque scanner to reduce your trips to the bank. TD also only bills you monthly. This is important to note as it reduces costs and decreases your bookkeeping work.

Credit Cards and Loans

  • TD offers credit cards, lines of credit, and small business loans. They have three different types of credit card options
    • TD Business Travel Visa Card which costs $149 annually interest of 19.99%
    • TD Aeroplan Visa Business Card which costs $149 annually interest of 19.99%
    • TD Business Visa Credit Card which costs $50 annually interest of 19.99%

 

TD requires a personal guarantee and if the amount is over $10,000 it has to be notarized as it is a provincial law. If you are in need of business loan there are many variables meaning it is different for everyone based on business, situation, dollar amount etc. They always require a down payment of 25% which does not include GST. If the dollar value is below $50,000 they like to see cash flow projections, notice of assessments, and an idea of what you need the money for. If the dollar value is higher than $50,000 they require more information. There is also a government business loan available that requires a smaller down payment of 10% and a registration fee of 2% of your government loan.

 

TD also has a few other options that they can offer to small businesses such as insurance incase of death or disability which is important to think about when borrowing money. You don’t want others to feel the burden in case an accident occurs. Another great service they can offer is their Merchant POS Service. There are many variables to consider so they have a specialized team of people to assist in businesses that deal with using cards as a form of payment. TD is the only bank who owns their service so it isn’t hired out. TD will personally go out and install the point of sale device of your choice. Once you run the machine at the end of the day, the money is in your account the next morning.

 

Lastly TD offers a couple payroll options. They have a referral recommendation to have someone take care of your payroll needs, but they also have an electronic payroll. There are many variations but you can set up electronic funds that the bank will pay for you instead of you worrying about the task.

 

Overall TD Canada Trust services so many aspects of small business and have specialized personnel to guide you in the right direction when it comes to the financial aspects. Each business comes with its own needs and requirements so it’s important to remember to have your business plan ready. Special thanks to Cheryl Cherneske.  

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