What Should You Look for When Choosing a Business Bank Account?

| June 6, 2023 | By

A bank account lets your business deposit and withdraw money, build a financial history, and track transactions. With the best business banking accounts, you’ll feel secure about your business funds and gain access to tools that make financial planning much easier.

Today, we’re ensuring you’re an informed bank business bank account holder. First, let’s dive into what you need to be eligible for business banking.

What are the Requirements for Opening a Business Bank Account?

Not everyone can open a business bank account. As the name suggests, these accounts are meant for people who mean business—and own one.

Fortunately, the process is less daunting than you may think. You’ve probably already done the hard work! Here’s what you’ll need to do:

Determine whether you’re a good candidate.

You may be eligible for a business banking account if you own or are involved in operating a business. Typically, we see self-employed individuals, new business owners, business partners, LLCs, C- or S-corporations, and nonprofits apply for this type of account.

Locate the proper documentation.

Your bank will need to see some paperwork to identify your business, provide proof of address, and understand your business’s finances and plans.

The documents your bank requires will depend on how your business is set up. For example, sole proprietorship/DBAs, LLCs, and nonprofits all have certain associated documents that your bank will request.

Your banker will likely request a financial statement, something with your business address, a formal document identifying your business structure, and maybe a business plan—along with your personal ID and an employer identification number.

Provide your first deposit.

For some business accounts, you may need to keep a certain amount of money in the account—usually an average daily balance—to remain eligible for perks or avoid fees.

Other options, like BNC National Bank’s free business checking account, have neither minimum balance options nor monthly service charges.

Talk to your banker about how you plan to use the account and they’ll help you determine the type of account best for your needs.

Enjoy the advantages!

Congratulations on opening your account! You’ve unlocked simplified financial record-keeping, easier ways to facilitate business transactions, and an intuitive way to build your business’s financial health.

Good news: Those benefits are just the start of what you’ll have access to as a business bank account holder.

Accessibility, Services, Security, and More: Let’s Get (Even More) Practical

Before signing off on your banking selection, check for these services and benefits to ensure you’re getting a competitive business banking experience. Your bank should offer you:

  • A user-friendly website and mobile app: You’ll need to be able to check your balances, deposit checks, and initiate transfers from your laptop or smart device.

  • Streamlined merchant card processing: If you want to accept card payments from customers, you’ll need merchant card processing. With this service, look for transparent pricing, secure transactions, and timely customer support.

  • Confidence-inducing security measures: Check to see if your bank has implemented robust encryption protocols, real-time fraud monitoring, multi-factor authentication, and other proactive measures to protect against potential threats. 

  • Insurance for your business’s funds: Ensure that your prospective business bank is FDIC-insured—which should give you peace of mind that your funds will be covered if something happens to your bank.

These factors are essential to see when assessing your bank’s real utility for your business.

This leads us to one final point, though: In the Internet era, it’s still vitally important to be near a physical bank location. Why?

Think about access to physical services such as cash withdrawals, and personalized assistance for tricky financial situations: These are services you may not need often, but when you do, you really do. Your in-person banking experience complements your digital banking services with added security and convenience.

However, the benefits of in-person banking go further than that.

The Importance of Building a Relationship with Your Business Banker

Your business banker shouldn’t be a nameless, faceless entity you use primarily to cash checks. If that’s your current status, you’re leaving value on the table.

Here are just a few of the benefits of having a helpful relationship with your community bank:

  • Service tailored to your unique business needs

  • Access to dedicated business bankers

  • Guidance as you choose the right banking services to grow your business

  • Local expertise regarding your community’s business landscape

  • Quick, responsive, and friendly customer support

  • Access to relevant information and resources

  • Assistance with complex financial situations

Need Help Evaluating Your Options? We’re Here to Support You

Feeling overwhelmed about your upcoming business banking choices? That’s understandable—there’s a lot out there.

Don’t worry. This is precisely why working with a community bank is key: Your neighborhood bankers are happy to support you with personalized service and only the most relevant information every step of the way.

BNC National Bank is passionate about helping local businesses get started, so if you’re ready to select your business bank account, we’re ready to help you. Schedule a meeting with our team today to discuss your options. In the meantime, check out this business banking resource: Questions to Ask to Determine the Best Bank for your Business.

BNC National Bank, Member FDIC, Equal Housing Lender

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