Your business needs a bank account if it’s going to function. With half of all Americans either working or owning a small business in the country, you need a dedicated solution for the size of your business. There are many business banking solutions available, which can make the process confusing.
The right bank will give you access to small business loan options and may throw in a few more perks on top of that. We are going to focus on the fundamentals of the business bank account and what you should be looking for in one.
Most small businesses still deal with branches directly, as well as online. If you will be dealing with the bank in person you need to make sure that the bank is actually open when you’re going to need them. For example, if you run a small business in the evenings you need to make sure you can make late-night deposits.
Business owners are demanding more accessibility from their bank account. And that has to come in the form of online banking. You should be able to check your bank account online at any time you want. Some banks have even delivered apps, where your balance can be checked through fingerprint verification.
Online banking that isn’t complex should be a part of every single bank account for your business. And online banking for your bank account should be completely free. You shouldn’t have to pay extra for this essential service.
There is a reason why the business bank account is entirely different from a standard personal bank account. The personal account will rarely come with any fees. Banks are constantly looking out to make sure that you’re not secretly investing in a franchise from your personal account. They want you to pay for banking services.
Your business account shouldn’t cost you a large amount of money to administer. There are no optimal fees for one of these accounts because it depends entirely on what you’re getting for your money. Shop around the banks in your area and see what you’re getting for your money.
Fees for a business bank account may seem small, but they can add up to hundreds of dollars over the course of a couple of years.
The world of business banking is a competitive one. Banks are constantly thinking of ways in which they can attract new businesses and attract existing businesses from other banks. This is where business banking introductory offers appear. Check to see what offers are available to you.
For example, a common offer is to have no fees on your business bank account for the first year, before you return to your original price.
Low-cost business bank accounts often come with monthly transaction limits. This is a serious problem if you are a business making transactions all the time. These often come in when you’re not paying for a full-service account. Make sure you check out the terms and conditions the bank puts in place. Transaction limits can range from 50 transactions per month to 300 transactions per month.
When something goes wrong with your account you have to make sure that you are dealing with a bank that’s going to treat you right. There’s little point in having a business bank account when the support is terrible. The support options available should be flexible and the people on the other end of the line should be helpful.
You can easily check this out by looking up the bank online. If they are not giving people what they want, you can usually find out about it because someone will rant about it.
This is far from a decision that should be taken lightly. You have to go out of your way to check all the options available to you. Consider the pros and cons of each bank and then begin your application. Until that account is opened you are free to change your mind.
Your decision will be one that impacts you years from now, so allow yourself a cooling off period. Speak to the bank before you begin your formal application.
What do you think you should be looking for in a bank account?
Also, be sure to check out our FREE eBook on how to get business funding when banks say no:
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Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.