Convenient location most important bank characteristic according to small-business owners.(Small Business Corner: NFIB)(Survey)

Bank websites with lots of bells and whistles may appeal to some, but they are just window-dressing as far as the nation's small-business owners are concerned. Only half do any Internet banking, according to a NFIB National SmallBusiness Poll recently released.

While banks, like most commercial enterprises, are spending considerable money and time promoting their Internet services, those who own and operate small firms say a convenient location is the most important bank characteristic for conducting their firm's banking business, followed by a bank whose personnel know the owner and the business, and a reliable source of credit.

The study found that over the past three years, slightly more than half (54 percent) found technology at their principal bank increasingly helpful. But more than one-third asserted that technology had no impact on them at all, and 11 percent complained that technology is getting in the way.

"The technology is being adopted slowly. However, there appears to be a high comfort level once the change is made because banks are not forcing small employers to use technology," said NFIB Senior Research Fellow William J. Dennis Jr. "More than eight of 10 said their principal bank does not push them to change."

Having their bank nearby is the attribute that ranks highest for owners. Sixty-two percent reported that a convenient location is very important. This could be partly driven by the need to be physically close for cash deposits, especially for retail enterprises. But the reluctance to embrace technology is also a factor. Twenty-seven percent have their principal bank located less than five minutes away from their business and another 35 percent have it located five to nine minutes away.

Owners also see proximity as a key factor in getting the bank to know their business and its effect on credit-underwriting decisions. The second most important attribute among small-business owners is the desire that banks know the owners and their businesses. Fifty-seven percent ranked this as a priority. It underscores the continuing concern among entrepreneurs of the importance of personal relationships and service. But there is also an underlying assumption, Dennis said, that in difficult times, a banker with first-hand knowledge about a business will be more helpful than one who is not.

Being viewed as a reliable source of credit came next on small firms' wish lists, with 57 percent also saying it is very important. However, more cite this feature than actually borrowed in the last three years, suggesting that while they have not sought loans recently, they may do so in the future, researchers said.