Discover the top 10 banking options for small business owners.
This covers what makes them a good option and a starting point to explore your options.
Here are the Top 10 Banking Options for Small Business Owners
Small business owners can have a difficult time finding a bank that will work for them. There are many factors to consider, such as the bank’s location, size, and services. This article lists 10 of the best banks for small business owners.
Small businesses are the backbone of the economy. They employ about half of all private sector workers in the US and contribute about half of total GDP. The US Small Business Administration defines a small business as one that’s independently owned and operated, with less than 500 employees, and is not dominant in its field.
The number of small businesses in America has grown by more than 50% since 1993. And while they make up only 3% of all companies, they account for a whopping 70% of all new jobs created over the past decade. Here are 10 top banking options to choose from if you’re a small business owner:
Chase Bank is the best small business bank all around. Chase is the best bank for general small business banking needs. With a huge network of nearly 5,000 physical branches and 16,000 ATMs around the world, you’ll never be far from your bank. Plus, you can deposit checks, pay bills, make transfers, and check your balance using their mobile app.
In general, a Chase business account is a good choice for most new, small businesses. This is especially true if you need to make cash deposits, need access to fee-free ATMs, or want to visit physical locations. If you plan to make more than 200 transactions per month, Chase isn’t a good choice. Chase is the right bank for you if you plan to use your credit card for most business purchases. The interest rates on their many cards are very low, and they also offer points, cash back, and rewards programs.
BlueVine is the best bank for small businesses and even for people who work from home. BlueVine has moved into banking. It is best known for its loans, lines of credit, and factoring services. These accounts can only be opened online, and there are no minimum balance requirements or fees for wire transfers, ACH payments, or when there aren’t enough funds in the account. With a BlueVine bank account, you also get a debit card that lets you use MoneyPass ATMs for free.
Account holders only have to worry about fees for cash deposits ($4.95) and wire transfers ($15) that go out of the account. These fees can add up for businesses that deal with cash or send money abroad. BlueVine is now taking applications for businesses that want to open a checking account.
Axos Bank is our pick for digital banks that provide full-service banking choices to meet the demands of your business. Its Basic Business Checking account requires no minimum deposit, no initial balance, and no monthly fees. Axos Bank also provides Business Interest Checking, an interest-bearing account with up to 1.01% APY on balances under $50,000 and 0.20% APY on balances between $50,000 and just under $250,000.
One of the most significant benefits of Axos Bank is that it reimburses all domestic ATM costs. You may deposit up to 60 items each month using its Remote Deposit Anywhere function. Unlike some of its digital-only competitors, Axos Bank accepts cash deposits using the MoneyPass or Allpoint ATM networks.
It also provides business savings, money market accounts, CDs, SBA financing, mobile and internet banking, and other services. You may also use workplace banking to provide low-fee accounts to your employees. It’s an excellent choice for organizations searching for a full-service digital bank.
Bank of America is a typical bank that may help your company expand. It offers two business checking accounts with easily waived monthly fees that you may choose between as your company’s needs vary. Its offers are identical to those of Chase, so assess your company requirements and compare the two organizations to see which is better.
With Bank of America, you may make up to $7,500 in cash deposits every month without paying any fees. You may obtain up to $20,000 in free cash deposits each month if you graduate to the higher-tier Business Advantage Relationship Banking.
Capital One is the best for business credit cards with unlimited transactions. Capital One’s business checking accounts have limitless fee-free transactions, which is unusual for traditional banks. Capital One also offers some of the greatest business credit cards available.
There are many benefits with this bank such as you can choose from two Spark Business Checking accounts and getting monthly service costs for Spark Business Basic Checking begin at $15 per month and can be eliminated with a minimum balance of $2,000 over the 30- or 90-day average, whichever is larger. With Spark Business Unlimited Checking, you may make unlimited fee-free cash deposits.
Plus, you can have one business savings account and certificates of deposit. Lastly, there are solutions for cash flow management including fraud management, accounts receivable, accounts payable, and liquidity.
Citizens Bank is the best option for free business checking. Citizens Bank is an excellent choice for company owners who live in the bank’s service region. It provides a free business checking account that allows for up to 200 fee-free transactions. A comparable account with another regional or national bank might cost $10 to $15 per month.
Citizens Bank have a strong business lending program that includes lines of credit, term loans, equipment loans, and SBA loans. This bank’s offers include business savings accounts, two business credit cards, and employee benefits options.
Another full-service banking choice for your small business is U.S. Bank. It appeals to us due to its numerous checking alternatives and business banking products, which include business loans and lines of credit, SBA loans, equipment financing, practice financing, and McDonald’s franchise financing.
The simplest business checking account, known as Silver Business Checking, has no monthly charge. While both the Gold and Platinum Business Checking accounts include fees, they both provide more free transactions as well as additional benefits.
U.S. Bank provides business savings and CDs, as well as money market accounts and corporate credit cards. In addition to merchant services, businesses may benefit from cash management, payroll services, fraud prevention, and gift card administration.
First Internet Bank is a good alternative if you are searching for a digital-only bank that offers the same full-service business banking solutions as a traditional bank.
It provides both interest-bearing checking and savings accounts, offering a 0.30% APY on checking balances of $10,000 or more, with no maximum restriction. First Internet Bank also offers money market savings and standard savings accounts, both of which earn 0.70% APY and have monthly fees that are waived if you reach a certain average daily amount.
First Internet Bank offers personal financing and banking solutions to company owners who want to retain their personal and commercial accounts in the same bank.
Wells Fargo provides Small business insurance to safeguard your company’s assets and personnel. Furthermore, Wells Fargo is a top bank for SBA loans, business lines of credit, and commercial real estate finance.
Wells Fargo Initiate Business Checking features 100 monthly transactions and $5,000 in fee-free cash deposits. With a $500 minimum daily balance or a $1,000 average daily balance, the monthly service charge of $10 is waived for online and mobile banking.
Additional monthly cash deposits and transactions are available with the Navigate and Optimize accounts. These Wells Fargo business checking accounts also contain waived incidental costs for things like stop payments, inbound transfers, and other things.
Navy Federal Credit Union provides excellent business banking services that are ideal for a wide range of small enterprises. Business bank and savings accounts, loans, credit cards, payment processing, and even retirement and insurance for you and your workers are examples of services available.
Credit unions are not-for-profit entities. This means they often charge cheaper fees and provide better savings rates than for-profit banks. You must first become a business member at Navy Federal before you can create a business bank account. You must first join the credit union as an individual, and to do so, you must be an active-duty military service member, a veteran, have links to the United States Department of Defense, or have an immediate family member who is a Navy Federal member.
To get started as a business member, you’ll also need a $250 initial deposit for sole proprietorships or a $255 deposit for corporate organizations. You must also be a regular member of the credit union, which involves a $5 deposit into a savings account.
ADDITIONAL TIPS: Small Business Payment Processing
Since credit card processing is the most important part of any business, it is important to find the best solution for your needs. There are many different types of free credit processing and paid credit card processing options out there, and it can be difficult to find one that will work for you. This guide will help you figure out how to find the best credit card processor for your small business.
The first thing that you need to do is make sure that you are comparing apples-to-apples when looking at a potential credit card processor. You want to make sure that they offer the same features, pricing structures, and other factors that are important to your business. If they don’t offer these things then they might not be a good fit for your small business.
The best credit card processing for small businesses is one that is affordable, reliable, and easy to use. Credit card processing can be a major cost for small businesses. It is important to find the best credit card processor that will help you cut costs and avoid fees. Also, the best credit card processing option should be affordable, reliable and easy to use. There are many different processors out there but not all of them are the best for your business so it’s important to do your research before choosing the best credit card processing company for you.
Bank Checklist for Starting a Small Business
The bank checklist is a list of the documents that a bank will need to process your application. It is important to make sure that you have all the required documents ready when you are submitting your application.
For example, if you are applying for a loan, the bank will want to know how much money you have in savings and checking accounts. If you are applying for credit card processing, they will want to know how much money you make per month and how many years of business experience you have.
There are a lot of things to consider when starting a small business. One of the most important is how to have small business payment processing. There are many ways to process payments, but there are few that are as convenient and cost-effective as credit card processing.
A simple bank checklist for starting a small business:
- Get your EIN number
- Apply for an account with a bank or credit union that offers checking and savings accounts, as well as merchant services (credit card processing)
- Decide on your desired payment method (cash, debit cards, credit cards)
Small business payment processing is a necessary part of any business, such as the credit card payment processing. It is the process of accepting credit cards as a form of payment for goods or services.
There are many options for small businesses to choose from when it comes to credit card processing, but there are two main types: merchant accounts and third-party processors. Merchant accounts are usually more expensive than third-party processors, but offer better services. Third-party processors are cheaper, but offer fewer features and less customer support.
Credit card processing can be a complicated and expensive topic to understand. However, there are many companies that offer credit card processing services for free. The best credit card processors offer a variety of features, such as no monthly fees and low transaction fees or what we call free credit processing. Many companies offer free credit processing for small business, but it’s important to do your research before signing up for one of these offers.
Establishing Credit History for a New Business
A new business needs to establish a credit history. This is what will make it easier for the business to get loans and lines of credit in the future. A company can use a credit card processing service to establish a credit history.
The best way for a small business to establish credit is by using a merchant account. There are many different types of merchant accounts available, and some offer better rates than others. Businesses need to compare rates between different providers to find the best deal possible.
Credit processing is essential to the success of a new business. It protects the company from the risk of bad debts and provides a sense of legitimacy. In this article, we will explore how to establish a credit history for your new business.
1. Find out whether you are eligible for a credit card processing account
2. Apply for an account with your bank or credit card provider
3. Find out what rates and fees you will be charged
Conclusion: Where Should I Start with Banking Options For My Small Business?
Starting a business is a big step and it is important to make sure that you are well prepared for the journey. There are many factors to take into consideration, but one of the most important ones is your banking options. You need to make sure that you have a good credit card processing system in place and that you have an idea of what the costs will be.
There are many options out there, so it can be difficult to know where to start. First and foremost, the list above can help you with your dilemma of who you want to help you with your banking needs.