Best Business Bank Accounts For New Businesses – With many of the big four banks claiming to have a business bank account, finding the best bank for your business is not easy.
Owning a business means you have to travel and chew gum at the same time. You will be forced to become a skilled marketer, an all-star prospector, and a self-taught financial expert. And then come key decisions like choosing a business bank account that will help you grow and manage your cash flow.
Best Business Bank Accounts For New Businesses
But first, let’s look at what a business bank account is and why you absolutely need one. (No one wants the hassle of figuring out which transaction is for their dinner or business.)
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A business bank account is a type of bank account that is opened in the name of a corporation as opposed to an individual.
Those who have tried to manage their personal and business affairs in one account know that it can be difficult as your business grows. That’s why there are special bank accounts. They are designed to provide business owners with the support, functionality and appearance they need to manage their business.
In many businesses, this is a legal requirement. If your business is registered as a company, partnership or trust in Australia, you will need to open a business bank account for tax purposes.
Where personal bank accounts have no fees or low balances, business bank accounts have associated fees. It only costs about $10 a month, but it’s there to cover their extra services.
Business Checking Accounts
And speaking of services, compared to personal bank accounts, business bank accounts offer a wide range of services. You will likely find specialized business services, business credit and overdraft facilities, term deposit services, settlement tools and enhanced reporting and accounting features. Some even link to foreign currency accounts so they can do international banking.
Due to the nature of the account, business bank accounts also have higher daily spending limits. You’re not just paying for groceries or paying off your credit card — you’re paying vendors and customers.
Here are some key factors to consider when comparing your options to help you find the best small business bank account for your small business. It’s not perfect, but it can help make the process easier.
We’ve included a business account as a comparison so you can see what a better alternative is.
Best Business Checking Accounts Of January 2023
With that jargon out of the way, let’s take a look at the key features of each of the Big Four bank accounts.
Finding a business account specifically designed for small businesses in Australia can be difficult, but there are a few basic ways to do your research. Small business bank accounts should have low/cheap monthly fees and no penalties for not meeting minimum deposits. When cash flow is tight, every dollar counts, and this flexibility allows your business to continue to put capital where it’s needed most.
It’s also important to have a small bank account that will grow with you. As your business grows, so do your payment needs and complexity. By opening a small business bank account with features like international payments, online payment processing and card creation from day one, you’ll save yourself countless hours of switching over a year or two when you lose your current provider. Look for a low-cost trading account that does this.
Business accounts are designed to provide the best business account experience for Australian small businesses, outside of the confines of the big banks. Open, use, and send and receive foreign currency transaction payments without fees. Manage your business finances from one central location. And never pay bank service fees or phone application fees.
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Contact us today to book a demo and see how a business account can help you grow.
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So why are we considering seven banks and not one? Because the best checking account for you depends on your needs. E-Commerce Stores Vs. brick and mortar, solopreneurs vs. Multi-member LLC.
Company Bank Account Opening Request Letter To Bank
First, we look at the main purpose of a small business bank – then narrow it down to specific needs.
Before choosing a bank, make sure you have all the required documents – the bank will want to know more about your finances and will check your credit score. If you’re not sure if you’re ready to get started, check out our article on how to open a small business checking account.
For general small business banking purposes, you can’t do better than Chase. With a large network – close to 5,000 brick-and-mortar locations and 16,000 ATMs worldwide – you’ll never be far from your bank. Additionally, their mobile app allows you to deposit checks, pay bills, make transfers and check your balance online.
A Chase business account is usually a good choice for many new and small businesses—especially if you need to make cash deposits, access cashless ATMs, or visit brick-and-mortar locations. Chase is not the right choice if you expect to do more than 200 transactions per month.
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While Chase has a minimum interest rate, keeping the minimum is the only way to waive the account service fee. So if you expect your balance to stay below $1,500, don’t choose Chase.
If you plan to use your credit card for a lot of business purchases, Chase is the bank for you. Their wide selection of cards offer very competitive interest rates as well as points, cash back and rewards programs.
Consumer Credit Union is one of the easiest credit unions to join. To become a member and have an account, you must:
Credit unions are unique financial institutions. They are non-profit organizations (hence the minimum deposit) and when you join, you get the right to vote in the election of the board of directors.
Which Is The Best Business Bank Account?
While credit unions often offer a limited range of financial products, CCU has a wide range of loans to choose from. They also have a no-fee Visa Business Platinum credit card and offer merchant services. And the minimum monthly balance for their checking accounts is much lower than most banks.
If a credit union’s nonprofit mission speaks to your values and you want to take advantage of a minimum checking account, CCU is a good choice. Signing up is easy, has low fees and offers more options than credit unions.
On the other hand, if it is important that you have multiple financing options and credit cards to choose from and that maintaining a minimum balance will not be a problem, you may be better off opening a bank account.
Most e-commerce small business owners do all their transactions digitally and get paid that way. In such a case, having a brick and mortar location that you can invest in may not be a priority. Just log in to online banking.
What Do You Need To Open A Business Bank Account?
Axos is the oldest and most popular online bank in the US. Their basic business checking accounts have no minimum balance and they offer many loan options. And while Axos doesn’t have a physical location, you can access your Axos checking account for free at any US ATM.
If you have an online business, are already comfortable with online banking, and expect to make fewer than 200 transactions per month, Axos is the right choice. You don’t need to maintain a high balance, which can be a relief when you’re starting your business and your cash flow is low. And if your business needs financing, you have many options.
BlueVine is known for its loans, lines of credit and financing services, which turned into a bank. These online-only accounts are easy to open, with no minimum balance requirements or incoming money transfer fees, minimum balances, or ACH payments. The BlueVine Bank Account comes with a debit card with free ATM access at MoneyPass ATMs.
The only fees account holders need to consider are cash deposits ($4.95 per deposit) and wire transfers ($15 per transfer). For businesses that deal in cash or money transfers, these fees can add up.
Best Small Business Bank Account
If you’re a freelancer who needs an account to collect payments online and help you with business expenses, BlueVine is perfect. This is a completely free bank account if you don’t deposit or send money. And, if you decide to grow your business one level, BlueVine can get you access to a loan or line of credit with this quick cash transfer.
Although it is located in Florida
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