Banks for Sale: What To Consider
Running a bank is less risky and complicated than many people realize. They provide a helpful service to the neighborhood and have a low failure rate—less than 1 in 1,000, compared to the 60% failure rate for new restaurants. Here are the most important things to consider when comparing community banks for sale:
- Capital and regulations. Banks are required to maintain a certain amount of capital and generally face more stringent regulations than other types of businesses. Be diligent in reviewing the operating history of the bank for sale to make sure it’s in compliance and avoid any potential future legal trouble.
- Location. People want to be able to access their money easily. A bank that’s centrally-located in a community will have a greater chance of building a customer base than one that’s less easily accessible. Commercial areas like shopping centers and entertainment districts can also be prime locations for a bank.
Are There Other Reasons to Buy Bank Buildings For Sale?
Old banks for sale are typically well-built with stately interiors and elegant, eye-catching facades. This makes them excellent locations for a range of other businesses, from legal and medical offices to art galleries and event spaces.
If you’re looking for an old bank building for sale to convert, pay attention to the zoning laws for the property to make sure you’ll be allowed to open the business you’re planning. Make sure you’re just buying the building, too, especially if it was a branch of a larger chain. They may be looking for a new owner for their bank, not to unload the property for another use.