> I want to make it clear that Chase could've been an excellent banking partner. I never gave them the chance. I never told them what my business does or what I'd use the money for. I never talked to anyone (besides saying what I needed to get off the phone). This story isn't a cautionary tale about Chase, it is rather recounting my naivete as a young, first-time startup founder.
Entrepreneurialism and nanny states are fundamentally incompatible.
If Chase or any other bank has to know what you had for breakfast in order to hold your money for you, then you shouldn't bank with them as you'll never know when they randomly decide you took money from a bad man and then hold your financial life hostage from you.
Because banks deal in finance, which is an arena rife for fraudulent activities. For example, in the us, personal savings accounts with large transactions (deposits or withdrawals over $10,000) get flagged under the 1970 Bank Secrecy Act[0] as a way to curb money laundering and related events.
You're correct; a bank isn't your parent. And, you can choose where to put your money for safekeeping. As can businesses.
But, as mentioned before, finance draws in scammers and con artists (sometimes those aren't even the bankers!) and extra measures are taken to ensure that nefarious activities are mitigated. This includes actually knowing about a business and the ownership (or authorized representative) who want to bank with an institution since corporations can easily keep beneficiaries well hidden.
Further, as businesses grow they may need more capital and other financial instruments (eg - stocks), all of which present a risk to the lender if the business isn't well understood, which could lead to unfavorable rates or declination for the business. The business can shop around, of course, but the result might just be the same and then what?
I don't really know where I'm going with this comment, but I guess the point is that Chase, et al, have regulations to follow and some of them suck.
I'm also not out to necessarily defend Chase, but as a checking account holder i haven't had anything but a great experience. And, there's no one I'd rather have on my side than the douchebags at Chase when I need to cancel or retract some financial transactions.
Ah, you are right! it's been a while since I read the post, and I mis-remembered it as being more negative about chase than it was. I'll edit my comment as such, thanks for pointing it out
Word. Sorry if my comment came across as snide. I sometimes forget that inflection doesn't translate well to text-only discussions.
It was a great post and very informative, especially the part about bank account being open after transferring all the funds out. I guess this is why some of the seemingly useless planning meetings we all have are actually necessary.
> I want to make it clear that Chase could've been an excellent banking partner. I never gave them the chance. I never told them what my business does or what I'd use the money for. I never talked to anyone (besides saying what I needed to get off the phone). This story isn't a cautionary tale about Chase, it is rather recounting my naivete as a young, first-time startup founder.