While it’s thrilling to join the approximately 33.2 million small businesses in operation in the United States, it also comes with a fair amount of responsibility. If you wish to streamline your company’s finances and keep some of your assets protected from personal responsibility, creating a business bank account is an absolute must.
The procedure for choosing a bank to open a personal bank account is very similar to that for opening a commercial bank account, although the former may seem more frightening from the outside. Here are some things to keep in mind when choosing a bank for your company’s accounts if you want to take all the risks possible.
Calculate Prices
Fees could quickly deplete the amount in your company’s bank account. Therefore, before committing to a certain bank, it is essential to add up all the costs you could incur. That way, you’ll know for sure if the account is worth the costs or if you’d be better off with a different and less expensive bank.
In addition to gathering the costs of the various fees, consider whether there are any options to have the fees waived. Several banks have minimum balance requirements that you must meet to avoid monthly maintenance costs. If you look at these possibilities, you may determine whether any of the account fees will become insignificant, depending on your usual activity levels and average balance.
Consider the features and offerings
Bank accounts for businesses, like personal ones, might have varying levels of available functionality. Some of them can process payments made by customers using credit and debit cards, thanks to merchant features. Numerous options include integrated accounting platforms or money management features. The bundle may include financial consulting services, fraud insurance, payroll processing, or the option to provide employees with debit cards.
You should evaluate the available features for their current value and potential future utility. This kind of thinking can help you choose a business bank account that will be there for you in the long run, eliminating the hassle of switching ones just because you desire a feature that your current one doesn’t offer.
Lastly, think about whether the bank offers any special deals related to account opening. Completing certain tasks often results in monetary bonuses. While specifics may differ, owning the account for a certain period of time and completing certain activities, including receiving a certain number of payments, are common themes.
Extra Factors to Think About
Other factors should be considered when analyzing the aforementioned ones. By checking the interest rates, you can determine whether your balances can grow with well-maintained balances. You should think about the possibility that higher interest rates will cancel out any mandatory payments.
You may learn a lot about a bank’s customer service by reading reviews online. In the event that an issue does emerge, you will be able to receive assistance promptly, which is important.
Finally, picking a bank that is an SBA loan lender could be beneficial if you’re thinking about getting a loan from the Small Business Administration (SBA) at this time or in the future. With a preexisting relationship, you and the lender may find the SBA loan application procedure less daunting.
