Stearns Bank Blog

FDIC Insurance: Strength and Security for Deposits

Stearns Bank — Tue, 12 Sep 2023 14:15:00 GMT

You’ve worked hard to earn every dollar for your small business. That’s why you need FDIC insurance to protect your company’s savings from bank failures. This federal protection covers deposits up to $250,000 per account owner per bank.

Knowing how FDIC insurance works helps you optimize your coverage so your business funds are fully insured. With the right deposit strategies, you can have peace of mind knowing your money is in good hands.

The Significance of FDIC Insurance

FDIC insurance was created in 1933 to restore trust in banks during the Great Depression. By insuring individuals and business deposits, it prevents destabilizing bank runs.

FDIC membership is a sign you can trust your bank. When you see the FDIC logo, you know your business accounts are protected up to $250,000. This includes checking, savings, CDs, and other deposit accounts.

Coverage and Membership

The FDIC protects a variety of business accounts including checking, savings, and CDs. Each separate account category at each FDIC bank is covered up to $250,000.

Banks pay to be FDIC members so they can provide this reassurance that your funds are fully protected. Strict audits confirm they have the financial strength to back up that guarantee.

Understanding FDIC Insurance

Use the FDIC’s deposit insurance estimator to calculate coverage for your specific accounts. This gives you confidence in how much protection you have.

For most businesses, accounts will be within the $250,000 insurance limits. But it’s important to verify this, so you can optimize coverage and know your savings are fully secured.

Managing Large-Balance Deposits

Our deposit insurance solutions start with understanding your needs. At Stearns Bank, our experts take the time to get to know you and your financial goals. We’ll explore options to maximize FDIC coverage tailored specifically to your situation.

For balances over $250,000, we offer customized solutions to simplify protection. Whether strategically structuring accounts or utilizing our partnership with IntraFi Network, you get convenience and peace of mind.

Rest assured, Stearns Bank will find efficient ways to insure your hard-earned savings fully. With a personalized approach, we’ll create a solution that provides confidence in every dollar you deposit.

Choose a Bank You Can Trust

In times of economic uncertainty, choosing a financially secure bank is crucial. At Stearns Bank, we recognize that safety is top of mind for our customers right now. You can be confident your money is protected with us.

As an independent, privately-held bank, we operate with financial discipline. Stearns Bank maintains a “bulletproof” balance sheet and a Tangible Common Equity ratio that positions us in the top 1% for stability.

We take pride in our prudent management and resilience, which has earned Stearns Bank widespread recognition:

Ranked as a "Top Performing Bank in the Nation" by American Banker magazine from 2019-2022
Consistently ranked in Independent Banker’s annual Best of the Best list among banks with more than $1 billion in assets
Cited by Trepp® as having one of the "most bulletproof" balance sheets, with capital levels far above peers

With our industry-leading financial strength, personalized service, and customized FDIC insurance solutions, Stearns Bank provides unwavering safety and confidence.

Does Your Lender Offer Custom Payment Solutions?

Stearns Bank — Fri, 25 Aug 2023 18:15:21 GMT

As a business owner, you know misaligned equipment financing payments can cripple your cash flow. But when you have a lender who provides truly customized solutions tailored to your specific needs, you can optimize cash flow across unique business cycles and revenue fluctuations.

Equipment financing is never a one-size-fits-all solution. The ideal payment structure for a landscaping company will look completely different from a clinic or construction firm. Your lender should recognize this and collaborate to develop a repayment schedule aligned with your unique business cycles and revenue fluctuations.

Business Cycles & Cash Flow Challenges

Onboarding new equipment impacts cash flow during installation, training staff, and ramping up to generate revenue. Process improvements can also temporarily decrease income in the short term.

Of course, seasonal fluctuations remain one of the biggest cash flow challenges for many businesses. Retail generates massive profits during the holiday season while construction can grind to a halt in cold winter months.

Having manageable financing payments during seasonal lows and highs is vital. The right payment flexibility helps smooth the inevitable financial ups and downs.

Industry Experience and Insight

An equipment lender that understands your industry can make a big difference. For example, Stearns Bank has specialized expertise in many industries, such as agriculture, manufacturing, rentals, healthcare, veterinary medicine, and construction. We know how industry cycles affect your cash flow and we can help you manage them.

A generic lender without such knowledge can’t offer you the best financing options for your business. You may end up with payments that don’t match your revenue patterns and hurt your operations.

Stearns Bank's Custom Payment Solutions

Subject to credit approval/qualifications. Some limitations may apply. Subject to change without notice.

At Stearns Bank, we know every business is one-of-a-kind, so your payment plan should be too. That’s why we provide customized payment structures including:

Delayed Payments

Delayed payments allow payments to start after the equipment generates revenue, preventing pre-revenue payment burdens during training and installation.

Step Up / Step Down Payments

Stepped payments increase as production and revenue ramp up, then decrease when cash flow dips, matching payments to revenue patterns.

Semi-Annual Payments

Making larger payments biannually or quarterly evens out cash flow for businesses with seasonal revenue like agriculture.

Seasonal Payments

Seasonal payments align with annual peak and slack revenue periods, ideal for industries like construction or landscaping.

Trade-In Cycles

Trade-in cycle financing enables faster upgrade cycles for equipment with rapidly changing technology like healthcare.

Financing That Fits: Stearns Bank's Equipment Finance Expertise

Finding the right equipment financing to align with your business needs is crucial, but it can also be complex. That's why you need a trusted lender like Stearns Bank in your corner.

Our team of dedicated financing experts is personally invested in providing exceptional guidance and service tailored to you. When you call us, you'll get a real person instantly to help answer all your questions and concerns.

We take a holistic approach to truly understand your operations and craft a customized financing solution that optimizes your cash flow. With our deep industry knowledge and flexible options, we can structure payments to sustain you through lean times while helping you thrive in peak seasons.

A Conversation With Jen Rakotz - A Monitor 2022 Top 50 Women in Equipment Finance

Stearns Bank — Tue, 25 Jul 2023 14:15:00 GMT

Meet Jen Rakotz, a powerhouse in the equipment finance industry. For over a decade, she has been helping businesses grow with Stearns Bank — one of the nation’s leading providers of equipment financing solutions. Whether it’s healthcare, construction, or agriculture, Rakotz knows how to tailor financing options to meet the needs of her diverse customers. She delivers smooth and effortless financing experiences that keep customers coming back for more.

But Rakotz is not only a savvy financier. She is also a leader who values communication and genuine relationships. She stays on top of the latest trends and technologies in the industry — and she is here to share her insights with us. In this interview, Rakotz debunks some common myths about equipment financing and reveals how technology is transforming the industry.

What Inspired You To Pursue a Career in Equipment Finance?

“After college, I applied for the reception position at Stearns Bank. When I went in for an interview, I actually interviewed with a team in Sales as they saw something else in me and I left that day with a position on the Client Relations Team.

As soon as I started, I fell in love with the role and helping customers grow their businesses. I was a Client Relations Representative for four years and then moved into a supervisor position and now have been working in a management position for the last year. It is a joy leading a team who has the same passion I have to help others.”

What Unique Challenges Have You Faced as a Woman in the Equipment Finance World?

“I can’t say I’ve personally faced many challenges as a woman in the equipment finance industry. I am inspired by other female leaders at Stearns Bank that have helped pave the way in this industry.

I look to them for guidance, and they have contributed to my career growth. I am very fortunate that Stearns Bank prioritizes female leadership and our CEO, Kelly Skalicky, really sets the tone that everyone has a voice at the company.”

What Are Some of Your Favorite Projects, Client Success Stories, or Memorable Moments Over Your Time Working in the Equipment Financing Field?

“I have truly enjoyed the relationships I have built with many of my customers over the years. I have been working with some of my customers since I’ve been with Stearns Bank, over 12 years ago. It’s rewarding to know that I am their “go-to” person.

My main goal is to always get their requests done quickly and make the process effortless for them. I also enjoy watching my team grow and witnessing everyone collaborate and work together to achieve both individual and team goals.”

What Do You Think Are Some Common Misconceptions About Equipment Financing?

“I think one common misconception about equipment financing is that all terms are the same. Speaking on behalf of Stearns Bank, terms can be customized to fit your business’s needs.

For example, for those in the landscaping or agricultural businesses, we can do seasonal or annual payments. We want to understand your business and create terms to accommodate your budget.

Some customers also think that the financing process takes a long time. We can actually take an application over the phone which only takes a few minutes. For our existing customers, we already have everything on file making the process even easier. If we can get everything we need upfront, we have seen application turnaround in under 2 hours.

Also, financing is not strictly transactional here at Stearns Bank — it’s so much more than that. We’re here to help people’s business dreams come true and to build relationships with our customers.”

How Has Technology Changed the Landscape of Equipment Financing Over the Past Decade?

“It’s so exciting how much technology has changed because everything is available at our fingertips! Customers can apply for financing right online and even sign their financing documents electronically. We even recently rolled out electronic notary which is saving time for our customers.

For our current borrowers, they can now view everything on their accounts online including their payment history, invoices, balances, and can even make payments online. It has become so effortless and easy!”

What Do You Think Sets Stearns Bank Apart From Other Equipment Lenders?

“To start, Stearns Bank stands apart from other equipment lenders because we answer on the first ring. If you call us, you will also always talk to a live person and never get a recording.

We are employee owners and we pride ourselves on our customer service and always make sure our customers get the assistance they need fast.

Next, Stearns Bank truly lives by our Mission, Vision, and Values. One value that I am especially proud of is, “Sense of Urgency.” Time can be of the essence in some financing situations, and we work quickly to get the equipment in our customers’ hands. We also can work with almost any vendor and finance a wide array of equipment.”

How Do You Balance the Needs of Your Clients With the Financial Risks Involved in Equipment Financing?

“As we always say at Stearns Bank, “Know Your Deal.” Before submitting an application, you should understand your customer, the industry they are in, the equipment they are purchasing, and the purpose behind the need.

There are times we may need to take a deep dive into a customer and get additional information such as bank statements or financial statements to understand their global profile. This in turn also helps us assist with future transactions.”

What Advice Would You Give to a Small Business Owner Seeking Equipment Financing for Their Small Business?

“Pick up the phone! We are only a call away to help answer any questions you may have. At Stearns Bank, we have people who are even experts in a wide variety of industries. We will be happy to explain the benefits of financing, how our contracts are set up, and how easy the process is."

Stearns Bank: Your Partner in Equipment Financing and Business Success

When you partner with Jen Rakotz and the equipment finance team at Stearns Bank, you get more than just a reliable source of equipment financing. You get a lifelong ally who knows your business, supports your goals, and delivers on your needs. Don’t settle for less. Contact Stearns Bank today and take the next step towards your business success

7 Industries That Can Benefit From Equipment Financing

Stearns Bank — Tue, 18 Jul 2023 14:15:00 GMT

In the fast-paced world of business, access to capital is crucial for driving growth and outshining competitors. However, many business owners face limited funds, hindering their ability to invest in necessary equipment and technology.

At Stearns Bank, we understand the unique challenges faced by different industries, and we're here to help. With our tailored equipment financing solutions, we empower small businesses to unleash their full potential and achieve remarkable growth.

Here are seven industries that can particularly benefit from capital investment and equipment financing agreements provided by Stearns Bank.

Agriculture

Small business loans are an incredible asset to farmers, as they enable the purchase of essential tools and machinery that optimize their production. These pieces of equipment may include tractors, combines, calf feeders, manure spreaders, and more.

To ensure a seamless financial arrangement, farmers often opt for seasonal payments when utilizing equipment financing. This strategic approach allows them to align equipment purchases with incoming cash flow, optimizing their financial stability.

Construction

The construction industry thrives on high equipment demand, driven by the growth of the housing sector and the diverse needs of construction companies in areas like highway construction, excavation, and concrete work. Equipment financing caters to both large machinery like excavators and bulldozers, as well as smaller equipment like skid steers and loaders.

By financing equipment, rental companies can offer more options to construction businesses that need specialized equipment for their projects.

Equipment financing boosts overall productivity in construction. With affordable access to essential equipment, financing solutions align with construction companies' budgets and catalyze success.

Healthcare

In the dynamic healthcare industry, staying ahead means investing in cutting-edge medical equipment for precise diagnosis and effective treatment. For this exact reason, equipment financing is a popular choice across various healthcare sectors, including optical, dental, aesthetics, veterinary, and urgent care.

By embracing equipment financing solutions, healthcare practices can ensure they have the necessary tools to provide exceptional services while keeping pace with the ever-increasing expectations of patients and consumers.

Lawn and Tree Care

In lawn and tree care, having the right equipment is crucial for productivity and top-notch service. With the right tools, professionals can efficiently maintain lawns, trim trees, and create beautiful landscapes.

Essential equipment in this industry includes lawnmowers, trimmers, blowers, aerators, and tree chippers. These tools streamline tasks — ensuring precision and efficiency for optimal results.

Similarly, forestry work also benefits from proper equipment. Tree felling, pruning, and wood chipping require specialized tools like chainsaws, logging winches, and chippers. Without the right equipment, tasks become challenging and inefficient — potentially leading to hazards and losses.

By recognizing the significance of having the right equipment, professionals in lawn and tree care can boost productivity, enhance service quality, and establish themselves as industry leaders.

Manufacturing

In the manufacturing industry, advanced equipment plays a crucial role in streamlining production processes and staying competitive. Investing in state-of-the-art tools enables manufacturers to optimize efficiency, increase output, and achieve operational excellence.

CNC (Computer Numerical Control) machines, for example, offer precise and efficient machining capabilities, while 3D printers facilitate rapid prototyping. Industrial robots automate repetitive tasks, freeing up human resources, and conveyor systems streamline material handling.

Embracing advanced equipment unlocks new levels of productivity and scalability for manufacturers. These technological innovations enhance product quality, speed up turnaround times, and ultimately lead to higher customer satisfaction.

Waste Management Services

Specialized equipment is essential in waste management services to ensure efficient waste collection, disposal, and recycling. Investing in the right tools streamlines operations and delivers effective solutions.

Equipment like garbage trucks, waste compactors, and recycling sorting machines enable efficient waste collection and sorting, promoting sustainability and minimizing environmental impact.

Additionally, specialized equipment such as trenchless excavation equipment, jetter pipe cleaning systems, pumper trucks, and restroom trailers support various tasks like underground utility installations, sewer line maintenance, and portable sanitation services.

By leveraging specialized equipment, waste management services enhance their capabilities, offer reliable solutions, and contribute to a cleaner and more sustainable environment.

Woodworking

Woodworking is an industry that embraces advanced technology for precise measurement, cutting, and fabrication. While traditional hand tools have their place, staying up to date with the latest and greatest equipment, such as saws and routers, is crucial for woodworking businesses. These tools, when combined with CNC machines and automation systems equipped with computer software and interfaces, enhance efficiency and precision.

When properly set up and utilized, a mix of traditional tools and modern equipment brings immediate benefits in efficiency and profitability to woodworking businesses. By utilizing equipment financing to upgrade woodworking technologies, small woodworking businesses can ensure they stay competitive and position themselves for future growth.

Tailored Financing Solutions for Your Equipment Needs

At Stearns Bank, we understand that your business operates on its own timeline. We're here to work with you and find a financing solution that fits your needs. Whether you need equipment financing for immediate upgrades or have plans for future growth, we're dedicated to supporting you every step of the way.

With our industry expertise and commitment to exceptional customer service, our experienced equipment financing team is ready to help you achieve your business goals. Contact us today and experience the Stearns Bank difference in driving your success.

Understanding the Benefits of High-Yield Business Accounts

Stearns Bank — Tue, 11 Jul 2023 14:15:00 GMT

As a small business owner, you know how important it is to make smart financial decisions. You want to maximize your profits, minimize your expenses, and grow your business. But how do you make the most of your business funds? One way is to consider opening a high-yield business account.

These accounts offer many advantages over traditional business accounts and can have a positive impact on your business growth and profitability. Below are the basics and benefits of high-yield business accounts and how they can help you achieve your business goals.

The Basics of High-Yield Business Accounts

A high-yield business account is a type of bank account that pays higher interest rates than regular business accounts.

They are similar to checking accounts in that they allow you to access your funds through debit cards, checks, or online transfers. However, they have some limitations on the number of transactions you can make per month and may require a minimum balance to open or maintain.

The main attraction of high-yield business accounts is their attractive interest rates. These rates are usually much higher than the national average for regular business accounts and can vary depending on the bank and the market conditions.

Advantages of High-Yield Business Accounts

By opening a high-yield business account, you can enjoy several benefits that can boost your business performance and potential. Here are some of them:

Increased Earning Potential

One of the most obvious benefits of high-yield business accounts is that they can help you earn more money on your idle business funds. Instead of letting your money sit in a low-interest account or under your mattress, you can put it to work in a high-interest account and watch it grow over time. This can help you increase your cash flow and generate more income for your business.

Capital Preservation

Another benefit of high-yield business accounts is that they can help you protect your business capital against inflation and market fluctuations. Inflation is the general increase in prices over time, which reduces the purchasing power of your money. Market fluctuations are the changes in the value of stocks, bonds, or other investments due to supply and demand factors.

Both inflation and market fluctuations can erode the value of your money and affect your business performance. By investing in a high-yield account, you can preserve the value of your money and earn interest that exceeds the inflation rate and market risk.

Liquidity

A third benefit of high-yield business accounts is that they offer liquidity, which means that you can access your funds easily and quickly when you need them. Unlike other investments that may lock up your money for a certain period or charge penalties for early withdrawals, high-yield accounts allow you to withdraw or transfer your money without any fees or restrictions (up to the monthly limit). This gives you flexibility and peace of mind that you can use your money for any business needs or opportunities that may arise.

Factors To Consider When Choosing a High-Yield Business Account

Not all high-yield accounts are created equal. There are some factors you need to consider before choosing the best account for your business needs, including:

Account Requirements and Fees

One of the first things you need to check is the account requirements and fees associated with the high-yield account. Some accounts may have a minimum balance requirement to open or maintain the account, while others may charge monthly fees or transaction fees. You need to weigh the costs and benefits of these requirements and fees and see if they fit your budget and cash flow.

FDIC Insurance

Another important factor to consider is the FDIC insurance coverage of the high-yield account. FDIC insurance protects your deposits up to $250,000 per depositor, per insured bank, for each account ownership category in case of bank failure. This means that if your bank goes out of business, you will not lose your money.

However, some high-yield accounts may not offer FDIC insurance or may offer it only up to a certain limit. You need to make sure that your account is fully insured by the FDIC for added security and peace of mind. One way to do this is to check the Tangible Common Equity (TCE) ratio of your bank, which is a clear measure of its financial strength. A strong and stable bank will have a TCE of greater than 12%.

Stearns Bank has a TCE of 24%, which makes it a fortress of strength as a $2.2 billion asset-size bank. Stearns Bank also offers FDIC insurance above $250,000 for its high-balance depositors as an added service, as do other banks across the country.

Additional Benefits or Features

You also need to look at the additional benefits or features that the high-yield account may offer, such as online banking or mobile apps. These benefits or features can make your banking experience more convenient and efficient.

For example, online banking can allow you to access your account anytime and anywhere, while mobile apps can enable you to deposit checks, transfer funds, or pay bills with a few taps on your phone. You need to choose an account that offers the benefits or features that suit your preferences and needs.

Stearns Bank's High-Yield Business Accounts

Experience the support you need at every stage of your business journey with Stearns Bank. Our wide range of business banking accounts, including checking and savings options, is tailored to meet the needs of entrepreneurs like you.

BusinessSmart™ Checking

Efficiently manage your finances with Stearns Bank's BusinessSmart Checking. Enjoy no monthly maintenance fees, free online banking and bill pay, free mobile banking with mobile deposit, and free eStatements. Simplify your banking experience while saving money.

BusinessSmart™ Market Savings

Grow your savings hassle-free with Stearns Bank's BusinessSmart Market Savings. Benefit from competitive interest rates, no monthly maintenance fees, and easy online account management. Rest easy knowing your savings are secure with FDIC insurance up to $250,000 per depositor. For larger deposits, Stearns Bank offers the ICS® and CDARS® programs for extended protection.*

*The Stearns Bank ICS program provides FDIC insurance coverage for up to $125 million in ICS, and up to $50 million for CDARS with a total combination limit of $150 million. Some limitations may apply.

BusinessEssentials™Checking

Simplify your banking with Stearns Bank's BusinessEssentials Checking. Enjoy unlimited ACH transactions, unlimited incoming wires, and one free outgoing wire per day. Say goodbye to excessive transaction fees with free, unlimited mobile deposits, auto cash sweeps, unlimited free Bill Pay services and free eStatements. Plus, no hidden fees, maintenance fees, or inactivity fees.

Comparison Tool

To make sure you're choosing the best business banking option, take advantage of our comprehensive comparison tool. This valuable resource allows you to assess the difference in returns between high-yield accounts like BusinessSmart Checking and traditional business accounts offered by other institutions.

Grow Your Small Business With Stearns Bank

Whether you need expert guidance from our business banking specialists, competitive interest rates, or transparent fee structures, Stearns Bank has the business deposit products that can help you turn your small business dreams into reality.

Ready to Get Started?

At Stearns Bank, we value your time and your trust. That’s why we always answer your calls on the first ring and help you compare business account options to find the best fit for your needs. Contact us today and let us show you the difference.

The Power of Property Ownership for Black Business Owners and Entrepreneurs

Stearns Bank in partnership with African Development Center — Thu, 22 Jun 2023 14:30:00 GMT

Black business owners and entrepreneurs have always faced pervasive challenges in their pursuit of success, including the need for more capital and limited access to opportunities for advancement and property ownership. Unlike their white counterparts, Black entrepreneurs are hindered by a lack of funding, perpetuating a cycle of inequality. The inability to access resources such as property ownership further exacerbates this disparity, denying them the same avenues for progress.

But property ownership is more than just a practical necessity — it’s a source of power and freedom.

To understand why property ownership matters so much for Black entrepreneurs, one needs to look at the history of their struggle to secure real estate amid discrimination and oppression. Only then can financial institutions take action to help Black entrepreneurs achieve property ownership and create real, long-lasting change.

The Importance of Property Ownership for Black Business Owners and Entrepreneurs

Owning property is a critical component of achieving business success. Property ownership provides stability and security, allowing business owners to control their location and avoid sudden rent increases, lease terminations, or landlord disputes that could disrupt their operations.

It is important to recognize that increased fees and rent on apartments and homes create additional challenges, impacting the rental history and credit of prospective borrowers. By owning property, business owners can mitigate these challenges and establish a stronger foundation for their financial stability and growth.

Owning commercial real estate allows for capital appreciation, the increase in property value over time. However, systemic barriers have disproportionately limited this opportunity for Black business owners, hindering wealth creation. By owning property, Black entrepreneurs can accumulate equity for funding future ventures, investing in assets, and passing down generational wealth — fostering economic empowerment.

Thirdly, property ownership can help level the playing field for Black business owners and entrepreneurs. By creating a foundation for future success, Black business owners can take control of their financial destiny and compete on an equitable footing with their white counterparts. This is especially critical in light of the significant racial wealth gap that exists in the United States.

Racial disparities persist in commercial real estate ownership, with only 3% of Black households and 8% of white households owning commercial properties. Furthermore, there is a significant wealth gap within ownership, as the average value of commercial property owned by white households is $34,000, while for Black households, it is merely $3,600. By promoting property ownership among Black business owners and entrepreneurs, financial institutions can help to narrow this gap and create a more equitable society.

Historical Barriers for Black Entrepreneurs and Property Ownership

The history of Black entrepreneurship in the United States is a story of struggle and resilience. For centuries, Black entrepreneurs have faced significant obstacles to owning their own business property, which has limited their opportunities for growth and wealth creation.

During the Jim Crow era (c. 1877 – c. 1950), for example, many Black-owned businesses were located in neighborhoods that were often undervalued and underdeveloped by discriminatory policies and practices. Although the property was more affordable in these areas, it became difficult for Black business owners to secure financing from banks that were often reluctant to invest in these neighborhoods.

Black entrepreneurs have not only had to overcome systemic discrimination and lack of access to capital, but they have also faced obstacles in acquiring and maintaining property. Real estate agents historically steered Black entrepreneurs away from white neighborhoods, limiting their options for ownership. Government-backed loan programs, like the Federal Housing Administration (FHA), were also not accessible to Black entrepreneurs, making it difficult to access capital and acquire property.

Even when Black entrepreneurs could secure property, they faced higher interest rates, insurance premiums, limited access to utilities and infrastructure, and discriminatory zoning laws. These barriers made it challenging for Black entrepreneurs to build and sustain successful businesses, and many were forced to operate out of leased or substandard properties, further limiting their growth potential. The cumulative effects of these obstacles have resulted in significant disparities in property ownership and wealth between Black and white entrepreneurs.

The Inspiring History of Successful Black Entrepreneurs in America

Despite significant obstacles, notable Black entrepreneurs have achieved remarkable success. Take Robert Gordon, who was born into slavery but managed to purchase his freedom and establish a thriving coal yard in Cincinnati. Despite facing fierce competition, Gordon's determination allowed him to overcome challenges and sustain his business.

Annie Malone also stands as a pioneering figure among Black women entrepreneurs. In the early 20th century, she launched successful ventures, including a hair product line and other cosmetic products, becoming one of the first Black women to amass a multimillion-dollar fortune.

Today, it is important to recognize that the achievements of present successful individuals have been built upon the toil and struggles of such trailblazers. However, it is equally crucial to acknowledge that many of the same challenges persist for aspiring entrepreneurs.

While these stories are inspiring, they do not reflect the reality for many Black business owners who continue to face persistent challenges and barriers. In 2019, there were a total of 5,771,292 employer firms (businesses with more than one employee), of which only 2.3% (134,567) were Black-owned, even though Black people comprise 14.2% of the country’s population.

Furthermore, the COVID-19 pandemic disproportionately affected Black-owned businesses, which declined by 41% from February 2020 to April 2020, while White-owned businesses declined by only 17%.

These disparities demonstrate the urgent need to create equal opportunities for Black entrepreneurs. At this critical juncture, it is essential that financial institutions actively support and uplift Black-owned businesses and work to address the systemic inequalities that have historically held them back.

How Banks Can Support Black Entrepreneurs

To truly support Black entrepreneurs in their pursuit of property ownership, banks must take concrete steps to address systemic barriers and provide the necessary resources and assistance. Here are some strategies that banks can implement to equalize property ownership opportunities.

Provide Access to Capital

Black entrepreneurs face a significant obstacle when it comes to building and expanding their businesses: securing adequate funding. The ability to acquire and maintain property is a crucial component of this, and without sufficient capital, many Black entrepreneurs find themselves unable to grow and maximize profitability.

To combat this issue, banks have a critical role to play in supporting Black entrepreneurs. They can do so by offering loan programs specifically tailored to the needs of this demographic or by partnering with community organizations to provide financial education and resources.

It's important to note that the statistics on this issue are alarming. According to CNN, in the first half of 2021, just 1.2% of total U.S. venture capital went to Black entrepreneurs. This disparity highlights the urgent need for targeted loan programs that can address this inequality.

By addressing these challenges and providing equal opportunities, banks can enable Black entrepreneurs to overcome financial barriers and achieve their business goals. This, in turn, can contribute to a more equitable and prosperous economy for everyone.

Eliminate Discriminatory Practices

Discriminatory lending practices have been a longstanding issue in the banking industry, causing immeasurable harm to Black entrepreneurs. Despite progress in recent years, a 2017 study revealed that Black loan applicants still face obstacles such as higher interest rates, lower loan amounts, and less favorable terms compared to their white counterparts.

Banks must recognize their role in perpetuating these harmful practices and take swift action to put an end to them. To create a better lending environment, banks must train their loan officers on equitable lending practices that do not discriminate based on race, gender, or any other factor. This is not only the right thing to do but also a legal obligation under fair lending laws.

Additionally, banks must ensure that their loan underwriting processes are transparent and equitable, with clearly defined criteria and requirements for obtaining funding. Black entrepreneurs should not be left in the dark about what it takes to secure financing and build their businesses.

Offer Technical Assistance

Owning property is a multifaceted endeavor, and Black entrepreneurs face distinct hurdles that can impede their advancement. It is important to recognize that the lack of generational wealth among Black business owners often hinders their access to foundational resources and knowledge needed for success, such as navigating permits, licenses, and networking opportunities typically associated with white privilege. To drive meaningful change, banks must proactively offer essential technical assistance to help bridge these gaps and empower Black entrepreneurs to achieve their aspirations.

One critical area where banks can provide assistance is business planning. Black entrepreneurs may require guidance in developing a viable business model and creating a realistic budget. With the right support, they can achieve financial stability and long-term growth.

In addition, banks can assist Black entrepreneurs with real estate negotiations, from identifying suitable properties to negotiating fair prices and terms. By providing this level of support, banks can help Black entrepreneurs overcome common hurdles and secure the resources they need to thrive.

Lastly, legal and regulatory compliance is another critical area where banks can offer assistance. Obtaining permits, licenses, and meeting zoning requirements can be a daunting task, but with the right guidance, Black entrepreneurs can overcome these barriers and focus on building their businesses.

Partner With Community Organizations

Banks have a responsibility to empower Black entrepreneurs by forming partnerships with community organizations that serve their needs. By collaborating with such organizations, banks can offer a more comprehensive suite of services that cater to the unique challenges and opportunities faced by Black entrepreneurs.

These partnerships should include working with organizations that provide business coaching and mentorship, which can be particularly valuable for early-stage ventures that require guidance and support to navigate the complexities of running a business. Additionally, partnering with organizations that offer networking opportunities can help Black entrepreneurs to expand their networks and gain access to new markets and funding sources.

Another critical area where banks can partner with community organizations is in affordable housing and community development initiatives. By supporting these efforts, banks can help to strengthen local economies and create sustainable growth opportunities for Black entrepreneurs and their communities.

Support Policy and Advocacy Efforts

Banks have a unique opportunity to drive meaningful change by using their influence to support policy and advocacy efforts aimed at dismantling systemic barriers to property ownership and wealth creation for Black entrepreneurs.

This involves taking bold action to advocate for changes to laws and regulations that perpetuate racial disparities in lending and investing in initiatives that promote economic empowerment and racial equity.

By leveraging their resources, banks can become powerful agents for positive social change, helping to create a fairer and more just society for all.

Collective Ownership

Banks have a crucial role to play in supporting Black entrepreneurs to achieve property ownership through innovative models like collective ownership. Collective ownership allows multiple stakeholders to share ownership and control of a property, which can reduce the individual risk and cost of acquiring and maintaining real estate.

One example of this is the Coliseum project in Minneapolis, which involved the transformation of a historic theater and adjacent buildings into affordable housing and commercial space for local businesses. The financing for this groundbreaking project was made possible through a coalition of community development corporations (CDCs) and nonprofit community development financial institutions (CDFIs).

By providing participation loans shared among multiple lenders, banks can join these efforts to support collective ownership projects in historically disadvantaged neighborhoods.

Stearns Bank’s Vision for Closing the Racial Gap in Property Ownership

Under the leadership of Skalicky and the unwavering commitment of the Stearns Bank executive management team, Stearns Bank has initiated multiple initiatives in support of the Minority Depository Institutions Advisory Committee's (MDIAC) mission. Stearns Bank takes pride in being at the forefront of creating a more inclusive and equitable financial system for Black entrepreneurs and underserved communities.

In a groundbreaking partnership with the African Development Center (ADC), a community development financial institution based in Minneapolis, Stearns Bank is actively working to foster the growth of businesses, facilitate wealth creation, and promote reinvestment in African immigrant-owned businesses within Minnesota. By providing crucial resources such as access to capital, financial education, business training, and mentorship, Stearns Bank empowers Black entrepreneurs to achieve their business goals and drive economic growth in their communities.

While these efforts signify Stearns Bank's commitment to supporting Black entrepreneurs in their pursuit of property ownership and wealth creation, it is essential to acknowledge that there is still much work to be done in order to achieve genuine racial equity in the real estate sector.

Open and honest conversations about the systemic barriers that persist, as well as advocating for the rights of Black business owners and entrepreneurs, are crucial for financial institutions, lenders, and community members alike. It is through these collective efforts that our country can make significant strides toward a more just and equitable future for all.

Depreciation Considerations for Your Financed Equipment

Stearns Bank — Thu, 08 Jun 2023 14:15:00 GMT

Behind every successful business is a well-oiled machine — but what happens when that machine starts to lose its shine? As a business owner, equipment depreciation is a concept you simply can't afford to ignore. Over time, the value of your machinery, vehicles, or other equipment decreases due to wear and tear. By understanding equipment depreciation, you can take proactive steps to save money on taxes, plan for future expenses, and maintain your equipment efficiently.

Keep reading to uncover everything you need to know about equipment depreciation — from the basics of how it works to the nitty-gritty details of how to calculate it. Armed with this knowledge, you'll be able to optimize your equipment and finances and keep your business running like a well-oiled machine.

What Is Equipment Depreciation?

As a business owner, you need to account for the value and lifespan of your equipment. Depreciation is a method that helps you allocate the costs of acquiring, installing, and maintaining your equipment over its estimated useful life. It recognizes the wear and tear the equipment goes through and allows you to plan for its replacement.

Depreciation reflects the understanding that the equipment's value decreases over time. The useful life of equipment refers to how long it can be used for its intended purpose. Considering its useful life helps you understand how long the equipment will provide value to your business.

Why Depreciate Equipment?

Depreciating equipment is a smart move for businesses from both tax and accounting perspectives. By allowing the cost of the equipment to be spread over its useful life, depreciation reduces the initial expense's impact on the business's cash flow. Moreover, since depreciation is tax-deductible, it can lower the business's taxable income and reduce its tax liability.

However, it's important to remember that even though depreciation is a non-cash expense, it can still impact a business's cash flow. This is because the cash used to purchase the equipment is gone and cannot be recovered, even though the expense is being spread out over time. Additionally, as equipment depreciates, its value on the balance sheet decreases, which can affect the business's overall financial position.

Disclaimer: The information provided in this blog section is for educational purposes only and should not be considered tax or accounting advice. Stearns Bank does not offer tax advice. Please consult a qualified tax advisor or accountant to obtain specific advice regarding your business's tax situation.

What Equipment is Depreciable?

Equipment depreciation can apply to various types of business assets, including:

Machinery and Manufacturing Equipment: Heavy machinery and manufacturing equipment, such as conveyors, assembly lines, and stamping machines, can depreciate over time as they are subject to wear and tear.
Office Equipment: Office equipment, such as computers, printers, and copiers, can also depreciate as they become outdated and less efficient over time.
Vehicles: Business vehicles, such as trucks, cars, and vans, can depreciate as they are driven and subject to wear and tear.
Furniture and Fixtures: Furniture and fixtures, such as desks, chairs, and lighting fixtures, can depreciate as they become worn or outdated.
Buildings and Real Estate: Buildings and other real estate can also depreciate over time due to wear and tear and obsolescence.

By understanding which types of equipment can depreciate, businesses can better plan for future expenses, make informed decisions about equipment maintenance and upgrades, and maximize tax benefits.

Methods for Calculating & Reporting Depreciation

Different types of equipment may have different useful lives and depreciation rates. Factors such as frequency of use, maintenance, and environment can influence depreciation rates. Two common methods for calculating equipment depreciation include the straight-line method and the accelerated depreciation method.

Straight-Line Method

This is the simplest and most widely used method. It involves dividing the cost of the equipment by its estimated useful life. The formula for calculating depreciation using the straight-line method is: (Cost of equipment - Estimated salvage value) / Estimated useful life.

Accelerated Depreciation Method

This method allows businesses to take a larger depreciation expense in the early years of the equipment's life, reflecting the possibility of obsolescence or higher maintenance costs as the equipment ages. There are several types of accelerated depreciation methods, but the two most common are the double-declining balance method and the sum-of-the-years-digits (SYD) method.

Make Smart Financial Decisions With Stearns Bank

As you can see, depreciation is not a one-size-fits-all concept. Different methods of depreciation can affect your financial statements and tax liability in different ways. That’s why it’s essential for business owners to work with their accountant or financial advisor to choose the best depreciation method for their specific needs.

If you need more guidance on financial decisions, you can always count on Stearns Bank. As employee owners, our team is personally vested in providing exceptional service to all of our customers. When you call us, you’ll get a live person on the first ring, and a loan expert who is ready to help with any questions, comments, or concerns.

Disclaimer: The information provided in this blog is for educational purposes only and should not be considered tax or accounting advice. Stearns Bank does not offer tax advice. Please consult a qualified tax advisor or accountant to obtain specific advice regarding your business's tax situation.

Funding A Business Acquisition And The Small Business Loan Program

Stearns Bank — Wed, 31 May 2023 14:15:00 GMT

Acquiring an existing business can be an exciting opportunity for entrepreneurs to take over an established brand with an existing customer base. However, this type of transaction often comes with significant financial challenges, particularly for buyers who lack substantial collateral to meet traditional bank financing requirements.

Luckily, the Small Business Loan Program provides a valuable option for such scenarios, making it easier for buyers to obtain financing and achieve their business ownership goals.

Working Capital Financing

One of the key advantages of the Small Business Loan Program is that it recognizes the importance of working capital financing. This type of financing is a crucial component of any small business, and the SBA loan program allows an appropriate amount of working capital to be financed along with a business acquisition.

According to Stearns Bank Vice President of Commercial Lending, Tom Ethen, the amount of working capital required can vary depending on numerous factors, such as the type of business and its operational requirements. For instance, seasonal businesses or those that require the purchase of raw materials or input costs to create their products will likely have a more significant need for working capital. Additionally, businesses that offer extended payment terms to their customers may require additional financing to bridge any gaps in cash flow.

Goodwill Financing

When acquiring a business, intangible assets like a brand name, customer base, and employee relations are crucial. However, these assets cannot be used as collateral to secure a loan. Traditional financing programs limit the amount of intangible assets that can be financed, making it difficult for business owners to secure the funds they need.

Fortunately, the SBA Loan Program offers flexible terms that allow for financing all types of business assets, including intangible assets like goodwill. This makes it an attractive option for small business owners seeking a change of ownership or business acquisition.

In addition, the SBA Loan Program focuses on the cash flow of the business rather than tangible assets. This means that loans can be approved even if the collateral is inadequate, as long as the business's cash flow can support the purchase price and debt repayment.

The Evaluation Process

In addition to strong cash flow, the SBA Loan Program considers other factors to mitigate the lack of tangible assets in a business acquisition transaction. The management and industry experience of the buyer is taken into account, along with the buyer's personal credit history, overall financial condition, and other sources of loan repayment.

Finding the Right Lender

Choosing the right lender can make all the difference in securing the financing you need to acquire a business and achieve your goals. That's why it’s important to find a lender with experience in SBA financing and a proactive, creative approach to business finance.

But don't just settle for any lender. Look for a bank that is not only a Preferred Small Business Lender but also actively participates in the SBA program. These lenders can help expedite the process and get you the funding you need in a timely manner.

And it's not just about speed. When choosing a lender, look for one with an innovative approach to loan origination and a strong customer service culture. By working with a lender that prioritizes your success, you'll have the best chance of securing the financing you need and achieving your business goals.

Stearns Bank Simplifies Business Acquisition Funding

Funding a business acquisition can be a complex and overwhelming process. However, with the Small Business Loan Program and the assistance of experienced SBA lenders, it is possible to achieve your entrepreneurial goals.

At Stearns Bank, we are dedicated to helping small business owners navigate the loan application process and secure the funding they need to acquire and grow their businesses. We also understand that related business experience is essential when evaluating loan applications. Whether it's prior ownership or employment experience in the same industry, experience in related fields, or relevant education or training, we value and consider all types of experience.

Plus, as an SBA Preferred Lender, we provide flexible repayment terms and an accelerated approval process to make it easier for you to secure the financing you need to acquire and grow your business.

Financing Terms Every Small Business Owner Should Know

Stearns Bank — Mon, 22 May 2023 14:15:00 GMT

When it comes to securing financing for your small business, the loan application process can be a daunting and complex endeavor, regardless of whether you're a seasoned entrepreneur or a newcomer to the world of business finance. With so many variables to consider and numerous financial terms to understand, it's easy to feel overwhelmed and unsure of how to proceed.

As a business owner, however, knowledge is your greatest ally. By familiarizing yourself with the key financing terms and concepts that are crucial to the loan application process, you can gain the confidence and insight necessary to navigate the process with ease and make informed decisions that will help your business succeed.

This blog post will delve into some of the most critical financing terms that every small business owner should be aware of, ranging from credit scores to loan comparisons and beyond.

Annual Percentage Rate (APR)

The annual percentage rate (APR) is a crucial factor to consider when comparing small business loans. It calculates the actual interest rate on the loan, including any fees you might be required to pay. By looking at the APR, you can determine the true cost of borrowing over the life of the loan.

Small business owners should use the APR to compare different loans and their total costs. While a loan with a lower interest rate might seem more attractive at first glance, additional fees and charges can significantly increase the total cost of borrowing. By comparing APRs across different loans, you can get a clearer sense of which option is the most affordable and sustainable over time.

Credit Score

A credit score is a numerical rating that reflects an individual's or company's creditworthiness and financial history. It's a crucial factor that lenders examine when evaluating loan applications, and it can have an impact on the interest rate you receive.

For business startups, there won't be an established business credit score since there isn't enough financial history to generate a score. However, the lender may look at both the personal credit scores of the business owners and the guarantors on the loan. For newer businesses, the lender may also look at both the business credit score and the personal credit scores of the guarantors on the loan.

Establishing and maintaining a high business credit score is essential for keeping borrowing costs low and maintaining access to credit. A strong credit history can also make your small business more attractive to potential investors, leading to a more diverse loan portfolio that includes equipment loans, credit lines, and leases.

Business Line of Credit

One way to establish and build your business credit score is to apply for a business line of credit. A line of credit operates similarly to a credit card, in that you can borrow up to a specific amount (your credit limit) and only pay interest on the money you actually use.

Business lines of credit offer flexibility in managing working capital needs, allowing you to borrow money as needed and repay it on your own timeline. However, there is one caveat to keep in mind: lines of credit often come with adjustable interest rates, which means your interest costs can go up or down depending on the market.

It's important to weigh the pros and cons of a business line of credit before applying. While they can be an excellent tool for building credit and managing short-term expenses, the potential for fluctuating interest rates means that you'll need to stay on top of your payments to avoid accruing significant debt.

Business Term Loans

When you need a large sum of money for your small business, a business term loan is a common financing option. With a business term loan, you receive the funds you need and pay back the loan with interest over a period of one to five years. This type of loan is often used to finance capital improvements, equipment purchases, and business expansion.

Business term loans typically require regular payments, which can be made daily, weekly, or monthly. Paying off your term loan on time can improve your credit score, making it easier to secure financing in the future. However, keep in mind that some business term loans may require collateral as a guarantee of repayment.

Cash Flow

Cash flow refers to the amount of money coming in versus the money going out of your business. Positive cash flow indicates that sales are exceeding costs, and is a critical factor in securing financing. Lenders view strong cash flow as a lower-risk factor, making it an important consideration for small business owners seeking funding.

Collateral

Collateral is a key concept in lending and refers to an asset or property that a borrower uses as security for a loan. Essentially, it's something of value that the borrower pledges to the lender to ensure repayment of the loan. The collateral can be in the form of real estate, vehicles, cash, investments, or other valuable possessions.

Offering collateral can increase the likelihood of approval for a loan and may even result in a lower interest rate, as it provides the lender with a form of security. In the event that the borrower defaults on the loan, the lender can seize the collateral and sell it to recoup the borrowed amount.

It's important to note that the value of the collateral typically needs to be equal to or greater than the amount being borrowed. While collateral may not always be required for every type of loan, it can be a crucial factor in securing larger loan amounts or loans for borrowers with less established credit histories.

Co-Signer/Guarantor

A co-signer or guarantor is an individual who signs a loan or lease agreement with the borrower and agrees to take responsibility for the debt if the borrower is unable to make the payments. Essentially, the co-signer/guarantor acts as a safety net for the lender, providing additional assurance that the loan will be repaid even if the primary borrower defaults.

For borrowers with poor credit or limited creditworthiness, having a co-signer/guarantor can be beneficial. It increases the likelihood of loan approval and may result in more favorable terms and lower interest rates. Additionally, co-signers/guarantors can help borrowers access larger loan amounts that they would otherwise not be eligible for.

However, being a co-signer/guarantor also carries risks. If the borrower defaults on the loan, the co-signer/guarantor becomes responsible for repaying the debt. This can negatively impact their credit score and financial situation, and potentially harm their relationship with the borrower. It's important to carefully consider the risks and responsibilities involved before agreeing to act as a co-signer/guarantor for someone else's loan.

Equity Financing

Equity financing is a method of raising money for your business by selling a share of ownership to investors. This approach is particularly popular among startups and small businesses that don't have the financial resources to fund growth on their own, don't qualify for traditional bank loans, or don't want to take on additional debt.

Equity financing can be a smart choice for businesses that have a high potential for growth, as investors are often willing to take on additional risk in exchange for the potential for significant returns. However, it's important to carefully consider the terms of any equity investment, as you will be giving up a portion of ownership and control of your business in exchange for funding.

Loan Origination Fee

A loan origination fee is a fee charged by a lender to cover the costs associated with processing a loan. This fee is typically charged at the beginning of the loan process and is usually a percentage of the total loan amount.

The loan origination fee helps cover the costs of underwriting, processing, and funding the loan. It may also cover the cost of any administrative tasks associated with the loan, such as preparing the loan documents and conducting a credit check.

Maturity Date

The maturity date is the point when both the principal and interest on the loan are due in full. Loans such as credit lines, adjustable-rate loans, and mortgages typically have maturity dates that include an interest-only repayment period at the beginning of the term, followed by a final payment at the end of the term. Being aware of the maturity date helps small business owners manage their loan repayments effectively and avoid defaulting on their loans.

Profit and Loss Statement (P&L)

The Profit & Loss Statement (P&L) is a critical tool for small business owners to increase profitability and grow their business. It provides valuable insights by identifying areas of success and improvement. The P&L statement acts as a barometer of performance, detecting drops in sales, income, and margins, or spikes in expenses.

Regular review of your P&L, typically on a monthly basis, ensures that any negative trends are identified early and adjustments can be made immediately. This proactive approach helps businesses better prepare for future months and achieve growth and top performance.

SBA Loans

If you're a small business owner looking for financing, SBA loans are a great option to consider. SBA loans are guaranteed by the Small Business Administration (SBA), which reduces the risk for lenders and makes it easier for small businesses to get approved for loans.

There are several different types of SBA loans, each with its own specific purpose. The most common types of SBA loans include:

7(a) loans are the most popular type of SBA loan and can be used for a variety of purposes, including working capital, equipment purchases, and refinancing existing debt.
CDC/504 loans are designed for small businesses looking to purchase real estate or large equipment.
Microloans are small loans (usually under $50,000) that are ideal for startups and businesses with low capital needs.
Disaster loans are available to businesses that have suffered physical or economic damage as a result of a natural disaster.

To be eligible for an SBA loan, your business must meet certain requirements, such as being a for-profit business operating in the United States, having a certain net worth and number of employees, and not being delinquent on any existing debts.

The application process for SBA loans can be lengthy, so it's important to be prepared and have all necessary documentation ready. However, the advantages of SBA loans, such as lower interest rates and longer repayment terms, make it a worthwhile option for small business owners in need of financing.

From SBA Loans to Equipment Financing: Stearns Bank Has You Covered

At Stearns Bank, we are dedicated to helping small business owners overcome financing challenges and achieve their goals. From SBA loans and equipment financing to commercial financing and personal banking services, we offer a range of award-winning solutions to support your business at every stage of its growth.

Our experienced lenders take a holistic approach, considering factors beyond just credit scores, such as cash flow and overall financial profile, when evaluating loan applications. We believe in personalized service and work with each borrower on a case-by-case basis to find the best solution that fits their unique situation. At Stearns Bank, exceptional customer service is our priority every step of the way.

The Benefits Of Utilizing A Digital Wallet

Stearns Bank — Mon, 15 May 2023 14:15:00 GMT

Gone are the days of writing checks or counting out cash. In today's fast-paced digital era, convenience is key and time is precious. The rise of mobile wallet services has introduced a new wave of payment technology.

Digital wallets offer a wide range of benefits to the user, from enhanced security and ease of use to greater accessibility and environmental friendliness. In a fast-paced world where every second counts, digital wallets have become an indispensable tool for the modern-day consumer.

Keep reading to take a deep dive into the world of mobile wallet services and explore the many benefits that they offer.

What Is a Digital Wallet?

Digital wallets are a convenient and versatile way to manage your payment methods. Stored on a mobile device like a smartphone or tablet, digital wallets link to your bank account, debit cards, or credit cards.

Just like a physical wallet, you can store multiple forms of payment in a single app, along with other information such as boarding passes, loyalty cards, or hotel room keys!

With so many options available, digital wallets are a convenient and secure way to streamline your payments and keep your financial information organized. Some popular platforms include:

Venmo
Apple Pay
Google Pay
PayPal
FitBit Pay
Samsung Pay
Zelle

Why Use Digital Wallets?

Digital wallets offer many advantages over traditional plastic cards. They provide a faster and more secure method of payment, thanks to their advanced security protocols — which include two-factor authentication and one-time-use PIN numbers.

Additionally, digital wallets use device-specific numbers and unique transaction codes, so your actual card numbers are never shared with merchants. This feature is particularly important in today's world, where credit card fraud and identity theft are on the rise.

Digital wallets also protect sensitive information, such as your address and zip code, by using contactless payment systems. With these extra layers of security, users can feel confident that their financial information is kept private and secure.

How Merchants Can Use Digital Wallets

As a business owner, you may be wondering how you can set up digital pay for your customers. The good news is that it's easy to get started! Simply contact your payment provider and let them know you want to begin accepting mobile payments such as Apple Pay, Google Pay, or other digital wallets.

If you have an NFC-enabled terminal, you're already on your way to supporting mobile payments. The best part is that there's no cost to you as a merchant. By offering digital payment options, you're making it easier for customers to make purchases at your business.

In today's world, people are increasingly reliant on their smartphones and digital devices for all aspects of life, including shopping. In fact, a recent study by Visa indicates that 48% of consumers won’t even shop at stores that don’t offer contactless payment options.

Offering digital payment options can improve the customer experience and streamline the checkout process, leading to more satisfied customers and potentially increased sales!

Stearns Bank & Merchant Services

Stearns Bank is dedicated to empowering both businesses and individuals with the latest digital technology. Say goodbye to tedious tasks like depositing checks and managing paper statements - with mobile banking, mobile deposit, and CardSwap features, financial management is a breeze.

Stay in control of your finances with real-time alerts and notifications through StearnsConnect, and minimize paper clutter with e-statements. And with digital wallet technology, your customers can enjoy a faster and more secure payment experience.

Stearns Bank has partnered with FiTech to offer excellent merchant services that include payment acceptance equipment and business intelligence solutions. With personalized guidance and customized payment options, you can take your business to new heights.

Stearns Bank is dedicated not only to providing digital technology but also to using it to improve the financial well-being of all its customers. By embracing the digital age, you can enjoy the convenience and security of modern banking. Connect with an expert today to get started!