The options associated with having a small business bank account can vary, however, most include personalized banking features, accessible financing, along with other time-saving services and benefits.
Among some of the most beneficial features of having a small business bank account includes having convenient banking options such as easy access to cash and company accounts, making purchases without writing checks – in addition to receiving monthly detailed reports of payroll expenses, account payables and receivables, and all other financial and business-related transactions.
These convenient banking options also provide small business owners the ability to maintain separate personal and business accounts, which can save time and money when preparing quarterly payroll and tax statements, as well as providing a detailed credit reporting history, which is critical to the success of every small business.
Another option of small business banking includes the opportunity to develop a strong payment history and company credit rating, which becomes increasingly important when trying to establish a business line of credit, or secure financing for purchasing items such as company vehicles, or office equipment – in addition to applying for a corporate credit card, establishing new merchant accounts, access to untapped capital, accepting credit cards from customers and extending consumer lines of credit.
Along with financing and establishing credit, viable banking options can also provide a foundation for future company expansion and employee growth, which can be important in negotiating employee benefit plans with insurance companies, as well as new architectural designs, additional office space or a new building lease.
Having a small business banking account also provide small business owners an appearance of professionalism and increased credibility, particularly when it comes to securing new clients, as the business will more likely be taken seriously as a result of company printed checks and invoices.
In addition to securing new clients and financing, banking service options can also provide entrepreneurs and small business owners an advantage in attracting potential investors, as company bank statements can highlight a proven track history of company payment schedules, account receivables, credit ratings and overall revenue reporting.
Along with business and financing advantages, many banks also offer optional benefit features for company employees, such as direct deposit (saving time and expense from writing payroll checks), free checking accounts, free online bill pay, no balance required money market certificates, discounts on automobile loans, and no closing cost home equity term mortgages. In addition, most small business bank customers also receive a personal benefit banking coordinator, to oversee and manage employee banking features and all online benefit programs.
In closing, identifying the right bank options to match your small business banking needs takes time and research, which also includes understanding bank payment policies, account interest rates, loan options and other related fees – however, the pay off can result in numerous business advantages, including helping to establish company credit, developing a positive credit rating, attracting new clients, increasing employee retention, variable financing opportunities and creating plans for long-term growth.