If you’re like most small business owners, you have a lot on your plate. Many business owners have to tackle payroll, HR, bookkeeping, sales and marketing in addition to running their core business.
Depending on the size and scale of your business, you may not have anyone else who manages your accounts payable and accounts receivable.
The last thing you want is to have to search for a bank that can handle your small business. While most banks offer business banking products, such as business checking accounts, business loans, and business credit cards, they can differ in a lot of ways. In this article, we’re sharing five business banks worth considering.
Why Small Businesses Need Specialized Banking Services
As a small business owner, you want to deal with a bank that places a priority on its small business clients. When you first start your small business, you might commingle your personal and business funds.
However, doing this for too long can cause you to run into several different problems. For one, it can complicate your bookkeeping and make it difficult to separate your personal and business affairs.
How To Choose A Bank For Small Business
Every small business has different financial needs and priorities, which is why you’ll want to consider the following questions when shopping for a business bank:
- What banking services do you need? Many banks offer a wide range of business products. You’ll have to decide which ones you need for your business.
- What are your business goals? Where do you see your business going in the short and long-term? Does the bank offer services that you may need down the road?
- Do you prefer to deal at a physical branch? While most banks offer online banking, depending on your personality or the needs of your business, you might prefer to bank in-person. If that’s important to you, choose a bank that has branches nearby.
- Are the fees reasonable? Fees are often charged on business accounts. Consider how much it will cost to deal with different banks to ensure you’re getting the most value for your money.
Top 5 Best Banks for Small Business
If you’re looking for a bank that can handle the needs of your small business, here are five to consider:
10 Best Business Checking Accounts
Online vs. In Person Banking: What’s Best for Your Small Business?
Nowadays, most small business transactions can be done via online banking. From depositing checks to paying bills to transferring funds, you no longer need to visit a branch to do your banking.
The one exception is if your business deals heavily in cash transactions. While you can deposit cash through most ATMs, many retail operations need to deposit high volumes of cash and coin daily, and require access to a physical branch location.
If your business handles a lot of cash, an online-only bank won’t suffice. The good news is, most brick and mortar banks will allow you to deal in person and online.
If you don’t deal with cash, then you may want to consider opening your business account with an online-only bank. Online banks have less overhead costs, which means they can deliver on lower fees, while offering a convenient banking experience.
The Bottom Line
Choosing the right bank can make it easier to manage your business day-to-day. While searching, look beyond the business checking account options, and make sure the bank offers additional business banking products, like loans, credit cards, and investments.
Also, remember to keep your personal and business bank accounts separate, as commingling your banking can cause confusion come tax time, in addition to other complications.