Save money and be informed. CreditDonkey is a credit card comparison and reviews website. This website is made possible through financial relationships with card issuers and some of the products and services mentioned on this site. Advertiser Disclosure†
Updated February 28, 2021

Best Bank for Small Business

Read more about Business
Editorial Note: This content is not provided by the card issuer. Opinions expressed here are author's alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer.
This article contains references to products from our partners. We receive compensation if you apply or shop through links in our content. You help support CreditDonkey by reading our website and using our links. (read more)

The right bank account can make or break your business. Narrow down your options and find the best fit with this guide.

Being your own boss is tough but it's rewarding to build something of your own. The last thing you need is a bank eating into profits.

The best business checking accounts offer low fees/minimum balance, and a personal relationship.

But they're not one-size-fits-all. Restaurants need to deposit cash at a physical branch. A tech startup may prefer an online bank.

Take a look our list of the best banks to open a business account.

Here are the best banks for small businesses:

Chase
Member FDIC

Chase Business Complete Banking℠ - $300 Bonus

Expires 1/20/2022
  • Earn $300 when you open a new Chase Business Complete Checking account. For new Chase business checking customers with qualifying activities.
  • More ways to waive fees. Multiple options to waive the Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card
  • Built-in card acceptance. Accept card payments anytime, anywhere in the U.S., and get transparent pricing with Chase QuickAccept℠.
  • Same-day deposits with QuickAccept℠. Free up the cash you need to keep your business moving forward with same-day deposits at no additional cost.
  • Alerts to help you stay on top of your account activity.
  • Easy account management through Chase Business online and the Chase Mobile® app.
  • Unlimited electronic deposits, ACH and Chase Quick Deposit℠.
  • Convenient access to 16,000 ATMs and more than 4,700 branches.

What Kind of Bank to Choose

The first step is to decide what kind of bank you want to use for your small business. There are three main types:

  • National bank: These are the big banks with a lot of branches and ATMs throughout the nation. They're more convenient and usually offer more services and products. This could be a good choice for more established businesses.

  • Local bank: Even though our list focuses more on the bigger banks, micro businesses may benefit more from a local bank or credit union. A smaller bank is more likely to take a greater interest in helping local businesses grow.

  • Online bank: This option is good for purely online businesses or freelancers who don't need cash deposits. Online banks often offer higher interest rates and have less fees and requirements.

What kind of bank do you want to use for your small business?

Best Banks for Small Businesses

Not only do business accounts serve as places to keep business funds, the right bank can also provide services to help you reach your business goals.

© CreditDonkey

Here are the top picks for small business bank accounts, as well as any pros and cons to consider.

Chase for Complete Banking (Checking + Payment Processing + Credit Cards)

Chase Bank is a large national bank offering a variety of services for small businesses. It has over 16,000 ATMs and more than 4,700 physical locations. As one of the most popular card issuers, it's especially known for its excellent credit cards for small business.

© A Yee (CC BY 2.0) via Flickr

Chase Bank offers business solutions including:

  • Business checking accounts
  • Business credit cards
  • Business lending; term loan starting from $5,000
  • Lines of credit starting from $10,000
  • Commercial real estate loans
  • Merchant services
  • SBA 7(a), SBA 504, and SBA Express loans

Chase is known for a great mobile app and excellent 24/7 customer service with real reps.

Chase often offers a sign-up bonus to new account holders for opening new business bank accounts, so make sure you check out the current promotions.

Chase
Member FDIC

Chase Business Complete Banking℠ - $300 Bonus

Expires 1/20/2022
  • Earn $300 when you open a new Chase Business Complete Checking account. For new Chase business checking customers with qualifying activities.
  • More ways to waive fees. Multiple options to waive the Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card
  • Built-in card acceptance. Accept card payments anytime, anywhere in the U.S., and get transparent pricing with Chase QuickAccept℠.
  • Same-day deposits with QuickAccept℠. Free up the cash you need to keep your business moving forward with same-day deposits at no additional cost.
  • Alerts to help you stay on top of your account activity.
  • Easy account management through Chase Business online and the Chase Mobile® app.
  • Unlimited electronic deposits, ACH and Chase Quick Deposit℠.
  • Convenient access to 16,000 ATMs and more than 4,700 branches.

Chase Business Credit Cards
Chase is known for their excellent credit cards with huge bonuses, both personal and business. Some of their most popular cards include:

Ink Business Preferred Credit Card
Apply for Ink Business Preferred Credit Card
At Chase's Secure Site
  • Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®
  • Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn 1 point per $1 on all other purchases
  • With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring
  • With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information
  • Redeem points for cash back, gift cards, travel and more - your points don't expire as long as your account is open
  • Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards®
  • Purchase Protection covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account.
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
N/AN/A
15.99% - 20.99% Variable
$95

Ink Business Cash Credit Card
Apply for Ink Business Cash Credit Card
At Chase's Secure Site
  • Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
  • With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring
  • With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information
  • No Annual Fee
  • Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®
  • 0% introductory APR for 12 months on purchases
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
0% for 12 months
N/A
13.24% - 19.24% Variable
$0

Ink Business Unlimited Credit Card
Apply for Ink Business Unlimited Credit Card
At Chase's Secure Site
  • Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
  • Earn unlimited 1.5% cash back on every purchase made for your business
  • No Annual Fee
  • Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®
  • Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control
  • With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring
  • With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information
  • 0% introductory APR for 12 months on purchases
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
0% for 12 months
N/A
13.24% - 19.24% Variable
$0

Read our detailed comparison guide on the differences between the Chase Ink cards.

Be sure to read up on the Chase credit card application rules before you apply.

Bank of America: Best Low-Cost Small Business Checking

Bank of America is one of the largest physical banks in the United States. This is a good option if you're looking for a bank with lots of branches and ATMs.

© Mike Mozart (CC BY 2.0) via Flickr

Bank of America offers:

  • Business checking and savings products
  • Business credit cards
  • Small business financing, including equipment loans, real estate loans, vehicle loans and SBA loans
  • Secured and unsecured lines of credit
  • Credit card processing solutions
  • Payroll processing

While digital solutions are important to the convenience of today's bank customers, there is still need for the human touch. The best organizations can balance between digital and human-to-human interactions to create the strongest customer relationships.

Shep Hyken, customer service/experience expert, keynote speaker and New York Times bestselling author

Recommended: Business Advantage Banking
This business checking account has 2 settings that you can switch between. You can start with the basic tier, which offers easy ways to waive the monthly fee. It comes with built-in budgeting tools to help you manage cash flow.

Business Advantage Fundamentals Banking

  • Minimum Deposit to Open: $100
  • Balance Requirement: None. Can waive monthly fee without needing to keep a balance.
  • Monthly Fee: $16 (can be waived by spending $250 in new net qualified debit card purchases each month)
  • APY: N/A
  • ATMs: 17,000 ATMs nationwide

Several ways to avoid the $16 monthly service charge include:

  • Spend $250 in new net qualified debit card purchases.
  • Maintain a $5,000 combined average monthly balance.
  • Enroll in the Preferred Rewards for Business program.

Business Advantage Relationship Banking

  • 500 free transactions per month
  • $20,000 in cash deposits per month
  • Waive the $29.95 monthly fee by maintaining a $15,000 combined average monthly balance
  • Minimum Deposit to Open: $100
  • Balance Requirement: $15,000 combined average monthly balance to waive the monthly fee
  • Monthly Fee: $29.95 (can be waived)
  • Perks: Free Business Advantage Savings account; free wires

Wells Fargo for Convenient Locations

Wells Fargo is one of the "big four" banks in the nation with $2 trillion in assets. It has over 5,000 branches across the country.

© Mike Mozart (CC BY 2.0) via Flickr

We like Wells Fargo because of its comprehensive offerings and convenient locations. It's a good choice if you want everything in one place.

Wells Fargo offers a wide range of business banking services:

  • Three business accounts for different checking needs
  • Full-service payroll features and employee benefits
  • Customized merchant processing options
  • Tax programs
  • Business credit cards
  • Various business loan options
  • Secured and unsecured lines of credit
  • Small business insurance

Recommended: Initiate Business Checking Account
This is one of the best checking accounts from a big bank. The Wells Fargo Initiate business account is ideal for growing small businesses. It's pretty easy to waive the monthly fee. The opening minimum deposit is just $25.

Initiate Business Checking

  • 100 free transactions each fee period
  • $5,000 in cash deposits processed free each fee period
  • $25 minimum opening deposit
  • Waive the $10 monthly service fee by maintaining a $500 minimum daily balance or a $1,000 average ledger balance
  • Minimum Deposit Required: $25
  • Balance Requirement: $500 minimum daily balance to waive $10 fee
  • Monthly Fee: $10 (can be waived)
  • ATMs: 12,000+ nationwide

U.S. Bank: Best National Bank With No Monthly Fees

If you're looking for a free account at a big financial institution, U.S. Bank is one of the few large brick-and-mortar banks with a no-fee business checking option. U.S. Bank has large branch network of over 3,000 physical branches across the United States.

© Paul VanDerWerf (CC BY 2.0) via Flickr

U.S. Bank offers:

  • Four business checking options
  • Business savings, CDs, and money market accounts
  • Business credit cards
  • Small business loans, including SBA loans
  • Various lines of credit, including business equity and invoice financing
  • Payment solutions, cash management tools, and payroll services

Recommended: Silver Business Checking Package
This checking account has no monthly service charges or account minimum balance. It's ideal for new small businesses and start ups looking to save money on bank fees.

Silver Business Checking Account Package

  • $0 monthly service fee
  • 125 free transactions per statement cycle
  • 25 free cash deposits per statement cycle
  • Balance Requirement: $0
  • Monthly Fee: $0
  • ATMs: No fees at US Bank or MoneyPass ATMs
  • Perks: 50% discount on first check order up to $50

Capital One: Best for High Volume Businesses

For businesses with a lot of transactions, Capital One is worth looking into. Its checking options allow for an unlimited number of transactions for no additional fees.

© Phillip Pessar (CC BY 2.0) via Flickr

Capital One offers business services such as:

  • Business checking and savings accounts
  • Small business credit cards
  • Small business loans and lines of credit
  • Merchant services through Worldpay
  • Cash flow management solutions
  • SBA 7(a) & SBA 504 Loans

Recommended: Basic Business Checking
This simple business checking account offers an affordable solution for businesses with high transaction volume. The minimum opening deposit is $250.

Basic Business Checking

  • Unlimited free transactions each month
  • $5,000 in free cash deposits each month
  • Waive the $15 monthly service fee by maintaining a prior 30- or 90-day average balance of $2,000 or more
  • Minimum Deposit to Open: $250
  • Balance Requirement: $2,000 average balance to waive $15 fee
  • Monthly Fee: $15 (can be waived)
  • ATMs: 70,000+ Capital One, MoneyPass and Allpoint ATMs

The Basic Business Checking has a $15 monthly maintenance fee that can be waived if you average a $2,000 minimum balance in the prior 30 or 90 days.

Capital One has about 750 locations. Even if you don't live near a branch, you can use any of the 70,000+ Capital One, MoneyPass and Allpoint ATMs at no charge.

Axos Bank: Best Business Interest Checking Account

Your choices are limited if you're looking for a business interest checking account. It's best to look to online banks in this case. Axos Bank is one of the few small business bank accounts that offer interest yields.

Axos Bank offers business checking and business savings accounts with interest on all balances, so you can grow your money.

Recommended: Axos Business Interest Checking Account
The APY isn't the highest, but it still beats out interest rates offered by traditional big banks.

You get a very low number of free items each month, so this simple business account may be best for freelancer-type folks who only need a place to receive their earnings.

Axos Bank
Member FDIC

Basic Business Checking Account - $100 Bonus

Expires 12/31/2021

Use promo code EARN100 on your application. Restrictions apply.

Axos Bank
Member FDIC

Business Interest Checking - 0.81% APY

  • Earn 0.81% APY
  • $100 minimum opening deposit
  • No monthly maintenance fee with average daily balance of at least $5,000
  • Unlimited domestic ATM fee reimbursements
Axos Bank
Member FDIC

Business Money Market

  • Earn 0.20% APY
  • $1,000 minimum opening deposit
  • No monthly maintenance fee with average daily balance of at least $5,000

LendingClub: Cash Back Rewards & Loans

LendingClub (previously Radius Bank) is an online-only bank offering an array of small business banking solutions:

  • A checking account with cash back rewards
  • Commercial lending
  • SBA loans
  • PPP loan forgiveness

The Tailored Checking account gives you 1% cash back on debit card purchases if you have an average balance of at least $5,000. You also get free ATM access worldwide and unlimited transactions.

There is no monthly service fee if you can maintain a $5,000 balance. Otherwise, it's $10.

LendingClub Bank

Tailored Checking - Business Banking

  • Minimum Deposit to Open: $100
  • Balance Requirement: $0
  • Monthly Fee: $10 (can be waived by maintaining a $5,000 balance)
  • APY: 0.10% APY on balances of $5,000 and up
  • ATMs: Unlimited ATM fee rebates worldwide
  • Perks: Unlimited 1% cashback on debit card purchases (for accounts with at least $5,000 balance)

Best Business Bank Accounts with No Fees

It can be hard for small businesses to meet balance requirements. Here is a list of free business checking accounts with no monthly service fees.

BlueVine: Business Checking With Interest

BlueVine is an online lender that provides easy financing and lines of credit to small businesses. It also has an excellent business checking account.

The business checking account has no monthly service fee, no minimum deposit or balance.

Business Checking - Up to 0.6% APY

  • Minimum Deposit to Open: $0
  • Balance Requirement: $0
  • Monthly Fee: $0
  • APY: 0.6% on balances up to $100,000; 0% APY on balances over $100,000
  • ATMs: 37,000+ MoneyPass ATMs
  • Perks: 2 free checkbooks; No non-sufficient funds fee

Aside from checking, BlueVine offers business line of credit up to $250,000. It also offers invoice factoring for B2B businesses, which lets get an advance against unpaid invoices. This is available to those with lower credit scores.

Novo Bank: Integrations with Business Services

Novo is digital bank designed for entrepreneurs and small business owners. It has no monthly fees.

Novo integrates with popular business tools like Shopify, HubSpot, and Google Ads. Plus, it offers thousands of dollars of exclusive discounts on business products (for example $20,000 in fee-free card processing with Stripe and $150 Google Ads credit).

Novo

Powerfully Simple Business Banking

  • $0 monthly service fee
  • $50 deposit to unlock all features
  • Unlimited ATM fee rebates

Novo does not check your credit history when you apply an account. Your credit score will also not be affected by having a Novo account.

TIAA Bank

TIAA Bank is an online bank with headquarters in Florida. Its Small Business Checking account is designed for sole proprietors and single-owner LLCs.

There are no service fees or minimums. However, you must have an initial deposit of $1,500 to open an account.

Small Business Checking

  • Minimum Deposit to Open: $1,500
  • Balance Requirement: $0
  • Monthly Fee: $0
  • APY: 0.10%
  • ATMs: Up to $15 in ATM rebates each month (unlimited rebates for accounts with $5000 balance)

TTIA Bank also offers lending and investment services.

Best Regional Banks for Small Business

If you have a local business, a regional or community bank may fit your needs. It gives you the chance to build a personal relationship with your banker. They also have more interest in helping small businesses succeed.

Huntington Bank
Offers three business checking tiers depending on the size of your business, including a free product with no minimum balance. All accounts come with a suite of digital tools to help you manage income, expenses, and forecast cash flow. This bank has a large presence in the Midwest.

Huntington business banking is only available to those with a local branch. You must be present at a branch to open an account. Huntington Bank is most prominent in Ohio and Michigan, with other locations in IL, IN, KY, PA, and WV.

Huntington
Member FDIC

Business Checking 100 - $100 Bonus

To be eligible for the $100 cash bonus, business customer must open a new Huntington Business Checking 100, Unlimited Business, Unlimited Plus Business, Business Analyzed, Business Non Profit Analyzed, or Business Non Profit Interest Checking account by March 7, 2022 then make a minimum cumulative new money deposit into the new checking account of at least $2,000 within 60 days of account opening.

"New money" is defined as money that is not currently on deposit in any Huntington account (except maturing business CDs). Account must maintain an open status for at least 90 days before it is eligible for the bonus payment. All new accounts subject to account opening approval and account conversions are not eligible. An Early Account Closing Fee will apply to accounts closed within 180 days of opening.

Expires 3/7/2022
Huntington
Member FDIC

Unlimited Business Checking - $400 Bonus

To be eligible for the $400 cash bonus, business customer must open a new Huntington Unlimited Business, Unlimited Plus Business, Business Analyzed, Business Non Profit Analyzed, or Business Non Profit Interest Checking account by March 7, 2022, then make a minimum cumulative new money deposit into the new checking account of at least $5,000 within 60 days of account opening.

"New money" is defined as money that is not currently on deposit in any Huntington account (except maturing business CDs). Account must maintain an open status for at least 90 days before it is eligible for the bonus payment. All new accounts subject to account opening approval and account conversions are not eligible. An Early Account Closing Fee will apply to accounts closed within 180 days of opening.

Expires 3/7/2022
Huntington
Member FDIC

Unlimited Plus Business Checking - $750 Bonus

To be eligible for the $750 cash bonus, business customer must open a new Huntington Unlimited Plus Business, Business Analyzed or Business Non Profit Analyzed Checking by March 7, 2022, then make a minimum cumulative new money deposit into the new checking account of at least $20,000 within 60 days of account opening.

"New money" is defined as money that is not currently on deposit in any Huntington account (except maturing business CDs). Account must maintain an open status for at least 90 days before it is eligible for the bonus payment. All new accounts subject to account opening approval and account conversions are not eligible. An Early Account Closing Fee will apply to accounts closed within 180 days of opening.

Expires 3/7/2022

PNC Bank
The basic Business Checking has lets you waive the $10 monthly fee by maintaining a $500 average monthly balance. The opening deposit is just $100.

Business Checking Account - $200 Bonus

Open a new PNC Business Checking or PNC Business Checking Plus account. Maintain an average cycle balance of $5,000 in your new checking account for each of the first three statement cycles. Make at least 20 qualifying PNC Bank Visa Debit card transactions within the first three statement cycles.

This offer is only available to businesses with an annual revenue of less than $5 million. All existing business checking customers, including those who have closed an account in the past 90 days or has received a promotional premium in the past 12 months are not eligible for this offer. $200 bonus will be credited to your new business checking account within 90 days after all conditions have been met.

Expires 12/31/2021

TD Bank

TD Bank has a large footprint on the East Coast with 1,300 locations. It's known for extended banking hours and 24/7 customer service, so it's a great option if you live in a location served by TD Bank.

TD Bank
Member FDIC

TB Business Convenience Checking Plus

  • Minimum Deposit to Open: $100
  • Monthly Fee: $25 (waived by maintaining a $1,500 combined minimum daily balance with one TD personal checking account)
  • APY: N/A
  • ATMs: 1,300 TD ATMs

Iberia Bank
Iberia Bank offers a Free Business Checking account with no minimums or monthly service fee. You just need $100 to open.

Free Business Checking

  • $0 monthly fee
  • 500 free transactions each statement cycle
  • $10,000 in cash deposits processed free each statement cycle
  • Minimum Deposit to Open: $100
  • Balance Requirement: $0
  • Monthly Fee: $0
  • Perks: Two free personal checking accounts with monthly service charges waived for business owners

Why Have a Business Bank Account

All professional businesses, no matter the size or field, should have a separate business account. Not only does it make you look more legit, it'll also make your life easier when it's time to pay taxes.

It's an important practice to keep personal and business expenses separate. This keeps your accounting clean and leaves a clear record for the IRS. Even a side hustle will require you to pay income tax.

Having a separate business bank account will also allow you to perform daily operations, such as pay bills, write checks, purchase items, and pay employees and vendors from your business account.

In fact, a business bank account is necessary if you plan to fill out business lending applications in the future.

Best Bank for Your LLC

If you have a LLC, you may have different banking requirements than freelancers and sole proprietors. Here are some things to consider when choosing the best bank for your LLC.

  • Location
    Some traditional banks may require the owner(s) of LLCs to open a business banking account in person. If you're interested in a brick and mortar bank, be sure to look up their requirements.

    A digital bank, like Novo, allows LLCs to open an account online.

  • A bank that can grow with you
    You may outgrow an entry-level checking account. Does the bank offer higher tier business accounts with more transactions, features, or rewards? It can be a hassle to switch business accounts, so keep the future in mind when choosing an account now.

  • Other services
    As your LLC keeps growing, you'll probably need more services. Will you potentially want a small business loan in the future? Or payment services and employee programs? If so, look for a bank that offers a spectrum of services to small business owners.

  • Employee access and banking
    If it's important to you to share access with an employee or accountant, look for an account that allows for that. Or maybe you want the option of offering banking accounts to employees. Some banks, like Axos Workplace Banking, lets your employees open free checking accounts.

How to Choose the Right Bank for Your Business

When choosing the best business bank account for your needs, think about what perks or features you'd like. Consider these things:

Fees and account balance requirements
What is the initial deposit? In addition, many banks have a minimum balance requirement to waive the monthly service fee. Can your business comfortably meet that requirement?

You may also want to see if you can set up multiple accounts. For example, you may want a separate account to hold sales taxes collected and payroll taxes until it's time to file them.

Transaction limits
How many transactions do you expect each month? Pay attention to the maximum number of free monthly transactions you get, and the transaction fee for each one beyond that. High volume businesses will want an account with unlimited or higher number of transactions.

Transaction items include debits, credits, ACH bank transfer, and deposit checks.

Cash deposit
Do you need to deposit cash payments? If your business deposits large amounts of cash, it's best to look for an account that allows for a higher amount of free cash deposits. Take note of the cash deposit fees over the free limit.

Size of bank
Large national banks are more convenient and may have more options. On the other hand, small business banks or local credit unions offer more personalized service, and may be able to get you get a better deal on a loan or aid you financially if something happens.

One of the best resources for entrepreneurs is the Small Business Development Center. This nonprofit organization can help you with marketing, loans and more.

Availability
Are you the kind to bank in person? Does your bank have physical locations and ATM access near your area of business? If you make a lot of deposits and withdrawals, you may want the convenience of a physical branch.

If you're okay with a completely online banking experience, then going with an online bank can help you save. Online banks have less overhead costs, so they often have less fees. You can bank from anywhere on your mobile device.

Loans and other benefits
Even if you don't need a loan now, you may later. Having a personal relationship with someone at your bank may help you obtain these resources (like getting) a loan with a better interest rate. Otherwise, you may have to switch banks in the future if you can't get one from your bank.

Additionally, check that your bank is a lender for SBA loans (Small Business Administration loans). These federally subsidized loans give financing opportunities to businesses that cannot get a traditional bank loan.

Software integration
If your small business uses accounting software like QuickBooks, Freshbooks, or Xero, consider whether they will integrate with your new checking account. This matters because it could make your life easier.

Types of accounts
Do you want to handle your business and personal finances under one roof? If you do, look for bank that also offers personal checking and savings accounts, as well as business accounts.

Customer support
Will you be able to get help from a real person when you have a problem? Always do your research on potential banks. Read other customers' bank reviews to get an idea of how good the customer service is.

Introductory offers
Does the bank offer a sign-up bonus for opening an account? For example, Chase has a great small business credit card for rewards.

How to Build a Business Banking Relationship

Building a strong banking relationship can go a long way in helping your business grow. A good relationship can help you obtain a line of credit, loan, or other services when you need it.

Here are some tips to building a good relationship.

  • Get to know your banker, so they can see you as more than just an account number. This way, your banker is more likely to take more of an interest in your business's success. A banker is more likely to approve a loan to someone they trust.

  • Share your business plan and your goals. The more your banker knows about your business, the more they can recommend products and services right for you.

  • Be honest about your current situation. This includes both the good and bad. If you're facing some challenges, tell your banker. They can help you figure out options.

One of the best ways to build a banking relationship is a referral from a successful small business owner. If you know another business owner and they can connect you to their banker, that gives you an instant edge.

Unfortunately, online banks cannot provide the same type of personal relationship as a local branch. This is an important factor to consider if you're deciding between a traditional or online bank.

Documents You Need To Open A Small Business Bank Account

Whether you plan to open your small business account online or in person, there are several documents you will need.

To open an account, the first steps are to gather the following things:

  • An employer identification number (EIN) or Social Security number, if you're a sole proprietor
  • The business formation documents
  • Ownership agreements
  • Business license
  • Business tax ID
  • Name, address, and state of your business and business owners

Keep in mind that these are some of the most common files that banks request. Some banks may ask for additional information.

Sole proprietors can usually open a business account online and get approval. In cases of an LLC, partnership, or corporation, you and any partners most likely will need to sit down with a banker in person. Be sure to know the criteria.

Do banks check your credit when opening a business checking account?
Banks may run a soft inquiry on your credit, which will not affect your credit score. But most banks do run your banking history through the ChexSystem. If you have had overdrafts or other bad marks, that may affect your ability to open an account.

Managing Cash Flow for Small Businesses

Cash flow can really make or break a business. It's important to manage how much money is coming in and out of your business. A big expense, clients not paying on time, or a slow season can all put you in the red.

All businesses experience up and down cash cycles. You should be able to turn to your bank for help if you find yourself struggling. Talk with your banker about how they can help manage cash flow.

Here are some solutions to fix cash flow problems.

  • Business credit card: This can be used as an immediate fix when you just need to bridge a small cash flow gap. You can put some purchases on a credit card and pay it back next month. Just pay back the balance as soon as possible to minimize interest charges.

  • Business line of credit: A line of credit usually has higher credit limits and lower interest rates. It's ideal for short-term operational needs, like purchasing inventory or paying staff. It can also be used during slow seasons to keep the business going.

    It's smart to open a line of a credit before you even need it (when your business is financially healthy). It'll be readily available when you do need funds. And if you don't use it, then you don't pay anything.

  • Business loan/financing: A loan will provide you with a lump-sum of cash. There are different types of loans, such as long-term, short-term, equipment, or commercial mortgage loan. It's smart to finance large purchases so you free up working capital.

The best thing you can do is prepare in advance. Accounting software can help you stay on top of your finances and forecast your cash flow.

It's also important to keep a financial cushion in a business savings account with interest. This cash reserve can help keep you afloat through lean months or times of economic downturn.

How much cash reserves should a business have?
It is recommended for a business to keep three to six months of operating expenses on hand. Your expenses should include overhead, inventory costs, marketing, and employee wages.

Using Business Credit Cards

All small business owners should also consider getting a business credit card. If used smartly, they can be a great way to build your business or kickstart your startup.

Here are some benefits of using a business credit card.

  • Keep your business expenses separate from personal
  • Increase your business purchasing power
  • Easier to get a revolving line of credit than a loan
  • Build business credit, which will be needed if you're applying for financing
  • Earn rewards, like cash back or travel points

You don't have to get a business credit card from the same bank as your business checking. But it could make the approval easier. And it's also more convenient to have banking and credit accounts under one roof.

Credit Card Processing

Being able to accept credit cards is essential for all businesses and will allow you to cater to more customers. It's important to think about how you will be processing credit cards.

Business Account vs. Merchant Account: A business bank account is not the same as a merchant bank account. A merchant account is a special type of account that allows you to take credit card payments.

You have these options:

  • Through your bank. Lots of banks offer merchant services. You may consider this option if you want to have everything under one roof. But the pricing is not always transparent. You'd have to go through an approval process, which may not be ideal for very small new businesses.

  • Sign up with a merchant account provider. There are lots of other merchant account providers, such as Payline Data and Payment Depot. The pricing is more competitive and transparent. But similarly, they require an approval process, so it's better for more established businesses.

  • Use a payment services provider. Third-party processors, such as Square and Stripe, don't require underwriting. You can sign up and start accepting card payments right now. This is the easiest and most affordable option for new and small businesses.

You don't have to get merchant services through your bank. It's important to compare pricing and features across all your options. See our list of the cheapest credit card processing companies.

What Experts Say

As part of our series on small businesses, CreditDonkey assembled a team of industry experts to answer readers' most pressing questions. Here's what they said.

Bottom Line

As a small business owner, picking the best bank for your small business needs is important to your success and growth. You'll need it to manage your business finances, as well as potentially apply for a business loan or other services.

The right bank can help open more opportunities and help step up your business to the next level.

Consider all your options to see what makes most sense for your small business banking needs. Pay attention to restrictions and read the fine print before getting on board with one. If you're unhappy with your choice or your business situation changes, you can switch to another bank anytime.

Additional Resources

Write to Samantha Tatro at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.

Editorial Note: This content is not provided by Chase. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Chase. This site may be compensated through the Advertiser's affiliate programs.

Read Next:

Best Free Checking Accounts for Small Businesses

Free Business Checking

How to Open a Business Bank Account

How to Open a Business Bank Account

Business Checking Account Promotions

Business Account Promotions

Why You Need a Business Bank Account

Why Business Bank Account

Profit Increase Calculator

Profit Increase Calculator

Business Startup Calculator

Business Startup Calculator


Ink Business Cash Credit Card
Apply for Ink Business Cash Credit Card
At Chase's Secure Site
  • Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
  • With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring
  • With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information
  • No Annual Fee
  • Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®
  • 0% introductory APR for 12 months on purchases
  • Go to issuer's official application, terms, and details
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
0% for 12 months
N/A
13.24% - 19.24% Variable
$0
How to Build Business Credit

How to Build Business Credit

Best Business Checking Account

Best Business Checking Account

Professional Email Address

Professional Email Address

Discount Calculator

Discount Calculator

Sales Tax Calculator

Sales Tax Calculator

Business Loan Calculator

Business Loan Calculator


Articles on Best Bank for Small Business

Starting a Business Bank Account

Opening a business bank account is easy. You can even do it online. Find out how long it'll take and the requirements.
What kind of bank do you want to use for your small business?
26% National bank
31% Local bank
43% Online bank
Source: CreditDonkey
Leave a comment about Best Bank for Small Business?



How to Get a Business Credit Card

Apply for Business Credit Card

Applying for a business credit card is easier than it sounds. Here is how to apply for one, whether you have a corporation or a tiny home business.

About CreditDonkey
CreditDonkey is a credit card comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2021 CreditDonkey Inc. All Rights Reserved.