Best Business Bank Accounts: Top 7 Questions to Ask Before Committing

Every successful company needs an equally successful bank that offers adequate financial support to ensure a steady foundation upon which that company can build. It is vital to have a well-suited business account tailored to a company’s individual needs; this helps to keep business and private finances separate while minimizing incurred fees. There are many things to consider before becoming a business customer and finding the best business bank account can be difficult.

What to Consider?

Depending upon a company’s size and profitability, requirements to attain and retain a business bank account vary across financial institutions. It is crucial to choose an account that suits your business and offers incentives pertinent to your business goals. Small businesses do well to begin with a free business account and upgrade to an account with a high interest yield and low fees once the business has established good earnings.

It’s a good idea to make a list of your business goals and match these with the available financial institutions in your area to determine the best business bank account for your company. Don’t be fooled by flashy gimmicks and up-front offers; these may appear glamorous on the surface but fail to serve all your business needs. Compare banks to determine basic costs and available features so that you are well prepared to ask questions specific to your situation.

Questions to Help Choose the Best Business Bank Account

1. Are free business accounts available in my area? If so, do the services provided and applicable fees mesh with my business plan and available revenue?

2. Are business debit cards available? Are business credit cards available? For each type of card, be sure to ask how many cards you are allowed to have and what are the transaction fees and limits for each.

3. Is there a limit on withdrawals or will the account be charged for each withdrawal after a preset limit?

4. If I cause an overdraft, am I required to cover the applicable charges? If so, how much are these fees?

5. Is there an option to freely move monies from one bank account to another? If so, what are the estimated delays before the transferred monies are made available?

6. Is there a savings account option that accrues interest?

7. Do physical banks have branches in my area? Does this bank offer on-line banking, telephone banking, and/or mobile banking options?

Once you’ve determined your company’s goals, and depending upon your answers to these questions, finding the right financial institution with the best business bank account for company should be fairly uncomplicated.

Free Business Checking Accounts

The word free is subject to interpretation within the financial district. Most accounts are free up to a certain point; once preset limits are surpassed, banking fees begin to accrue. If you are considering a free business account, be sure to ask about limits on transaction volume, minimum balance requirements, and maintenance fees should these limits be exceeded.

The best business bank account for your company depends mainly upon its size and business objectives. Use these as a guide to determine which business account is right for you.

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How to Get the Best Small Business Bank Account for Your Company

There are several factors to consider before choosing a business bank account. Company size, location, and business plan are all important elements that affect the type of business account an owner should choose; these factors should be taken under serious advisement while making such an important business decision. There are several things that a business account should entail and the best business bank accounts encompass all of the following attributes.

Define and Explore Your Needs

Before choosing a financial institution, consider the reasons you need a business bank account in the first place. If you are interested in specialized services, research banks in your region that offers these services. Be prepared to perform online and in-person investigations; often times, online information only covers surface information and cannot answer pertinent questions you may have. Never assume something that isn’t clearly stated; don’t be afraid to ask for concrete answers to your business banking questions. Credible financial institutions won’t have any problems calming your nerves and satisfying your financial inquiries.

If you hadn’t considered this before, search for a bank with a financial adviser. Many financial institutions offer these services as an added perk; benefits can include aide and guidance in future investments and professional help to manage cash flow.

Compare Features to Find the Best Small Business Bank Account

Once you have firmly established what you are searching for in a bank, comparing and contrasting the financial institutions in your area is a relatively simple task. Don’t forget that once you’ve narrowed down your options, you can always call to request more specific information or to schedule a meeting to review information and address particular concerns you may still have.

Keep in mind the importance of availability and account services. A bank that offers great incentives but lacks a local branch doesn’t do much good if you prefer a face-to-face interaction. On the other hand, nationwide banks that offer online banking but lack your required account services will likewise do you no good. Determine the type of banking system you will prefer and find one that suits your small business account needs.

As you draw closer to choosing a financial institution, remember to focus on fees and service charges. In most banks, fees for business accounts are significantly higher than those for private accounts, even going so far as to charge businesses for online banking services but not charging individuals. Beware that universal truths pertaining to personal bank accounts do not hold true in the business account realm.

Bank Size Does Matter

At some point in the life of a small business, it is highly probable that the company will need to borrow money. Since the decline in the market, many banks are making it more and more difficult to get credit. Surprisingly, many small business owners have turned to community and small banks to get the loans they require. Small banks are more likely than world institutions to issue loans to indigenous businesses because it strengthens the local economy and supports the community. These minor institutions tend to meet a small business’s financial needs on a more personal field and provide a level of support that “outside” banks cannot.

Once you have evaluated each of these steps and determined what services and values best fit your financial needs, it is as simple as a visit or the click of a mouse to get the best small business bank account for your company.

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The Perks of Having Business Bank Accounts

Start-up businesses would often forego opening business bank accounts and opt to use their personal bank accounts instead. Why is this so? For one, opening a separate account may mean incurring additional expenses. Another thing is that new entrepreneurs would want to reduce risks andso they want to establish their business names first before considering account options. Some are also hesitant to open business bank accounts because they think that it would be too much of a hassle to deal with the legalities associated with opening a corporate account. But should you follow in their footsteps?

Advantages of Opening a Company Bank Accounts

There are in fact a lot of advantages of having business bank accounts. Here are some of them:

It organises your finances and makes it easier for you to check your income and expenditure for the year. If you don’t have a business account, it will prove to be more difficult and time-consuming since you will have to separate and distinguish the personal transactions from that of the business banking transactions.

Another advantage of having business bank accounts is that it gives your business a professional profile especially when it comes to transactions with customers. This also shows that you are serious and focus-oriented on the ends of the business. And besides, a guaranteed business account will also help speed up the day-to-day financial transactions that you have.

The edge of having a separate business bank account would be transparency in financial transactions and in declaration of income. The flow of income and expenses should be clear. This also further shows tax authorities that you are a responsible business owner because you uphold transparency in business transactions and can pay your taxes in a timely manner.

Having a company or business bank account will actually get you more perks than nuisance. Some banking institutions for example would offer free business banking for a year for start-up businesses. Some banks could also offer business accounting software to be used on their day-to-day business operations on finances.

Finally, it will be easier for you to apply for business loans if you have an active business bank account.

Online Banking at Its Peak

A great thing about the technological advancements available today is that banking can already be done online. Online banking has become a growing necessity for business people who are always on the go, thereby making financial transactions very easy and convenient, as everything is done on a virtual landscape and can be completed quickly. Online banking also provides you easy access to your business data and income, and helps you keep track of your expenses. The element of speedy transactions is magnified online as well because your borganisation now runs on your own time and not on banking hours. You can easily pay bills and receive funds in a secure and fast manner, no matter what time of the day it is. So, with common banking concerns at bay, the company can now focus more on other important matters like generating sales.

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A Business Bank Account Should Make Business Sense

Business bank accounts are designed to support businesses and there is a wide range of business bank accounts available. It remains important to speak to a consultant and ensure you get the features you need for your specific business.

A business bank account can have multiple card holders. The debit cards can be held by non-authorized signatories or by primary cardholders who are authorized signatories to the account. Withdrawal limits are per card per calendar day and are restricted to the maximum card limit and apply to purchases you make and cash withdrawals when you enter a PIN. You can increase the limit at your bank. Most ATM machines offer a maximum cash amount per withdrawal.

Internet banking and mobile phone banking enables you to manage your money. If you travel or have to be out of the office, you can still obtain easy access to your bank account. These accounts typically provide effective ways to manage finances. Internet banking can save you time and can also simplify your accounting process. You can view the account balance, make payments and transfer money from anywhere at any time.

Business bank accounts offer flexibility, such as no minimum monthly balance, cheque facilities, cheque and deposit books, Internet banking, telephone banking, and ATM cash withdrawals and over the counter services. You can enjoy unlimited electronic transactions and depending on your financial institution, obtain an automatic overdraft limit.

Financial institutions have to cover costs involved for banking services and consumers are therefore asked to contribute towards the costs of various transactions. Fees are only charged when you make use of a particular service or when you failed to meet a commitment you made.

Cheque accounts offer overdraft facilities. An overdraft facility is an agreement with the bank which allows an account holder to use funds exceeding the amount on deposit. The banks usually charge an overdraft fee for accessing the overdraft facility.

In order to apply for a bank account in Australia, you will need an Australian Business Number, Australian Company Number or an Australian Business Number and the Certificate of Registration of Company, or Certificate of Incorporation, or certificate of Registration of Business Name or a letter from delegated authority for opening an account. The application also requires the name of the proprietor or director and the names, dates of birth and addresses of all account signatories. The lender will conduct a search of the business’s name to verify the details.

Business bank accounts can have multiple card holders. The cards can be held by non-authorized signatories or by primary cardholders who are authorized signatories to the account. Withdrawal limits are per card per calendar day and are restricted to the maximum daily card limit and apply to purchases you make and cash withdrawals when you enter a PIN.

Bank accounts typically provide effective ways to manage finances. Internet banking can save you time and can also simplify your accounting process. You can view the account balance, make payments and transfer money from anywhere at any time. The Australian banking system allows you to pay wages, debts and bills in an efficient manner.

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