Two beautiful freelance business women seller checking product order with computer in their startup small business. stock photo
Best banks for small businesses
Two beautiful freelance businesswomen checking product order with computer in their small startup business.  image bank

neuria /iStock.com

When you’re a small business owner, your bank can be your best friend. It can also be a source of frustration or, worse, a source of unforeseen and unnecessary costs. Choosing the right bank for your small business is important. Here are a few to consider.

Santander Bank

Santander Bank offers three different checking accounts for businesses of different sizes. Small businesses that typically make 50 or fewer transactions each month can choose the Basic Business Chequing Account. You don’t pay for the first 50 transactions, and subsequent transactions cost $0.60 each. The $7.50 monthly fee can be waived if you maintain an average daily balance of $1,500 in your checking account.

Santander also offers merchant services through Clover, using your choice of a handheld device, counter point of sale or no hardware at all.

Santander Bank also offers a variety of cash management services so you can keep your money moving. Send money through automated clearing house transactions or bank transfer. Make deposits via the mobile app, with a desktop scanner or via a safe.

hunt

Chase provides a full suite of business services, which they call Chase Business Complete Banking.

The Chase Business Complete Current Account includes Chase QuickAccept, which allows you to accept card payments 24 hours a day, 7 days a week, anywhere in the United States, using the Chase Mobile app. Fees are transparent: you pay 2.6% plus $0.10 for tap, dip, or swipe transactions, and 3.5% plus $0.10 for manual transactions. You also receive same-day deposits, which can improve your cash flow. There’s a $15 monthly service fee, but you can waive that with a minimum daily balance of $2,000 or $2,000 in purchases with your Chase Ink Business credit card.

Chase also offers a variety of business credit cards. The Ink Business Unlimited Card gives you 1.5% unlimited cash back on every business purchase. It has an annual fee of $0 and an introductory APR interest rate of 0% for the first 12 months. After that, the variable rate ranges from 13.24% to 19.24% annual percentage rate. New cardholders get a $750 cash back bonus when they spend $7,500 on purchases in the first three months.

NCP Bank

PNC Bank offers a wide range of business banking services, including business checking, business savings, credit cards and business loans. They also offer PNC Merchant Services, which includes representatives who can help you determine the best payment processing solution for your business. They offer e-commerce solutions for online businesses, as well as in-person solutions with a contactless and chip card reader or point-of-sale system.

Currently, you can earn $200 when you open a new Business Checking or Business Checking Plus account. During each of the first three statement cycles, you must maintain a minimum average balance of $5,000 and complete at least 20 Visa debit card transactions in total. Or, if you open a Business Cash or Business Analysis Plan checking account and maintain a minimum average balance of $30,000 for the first three statement cycles, you’ll get $500.

Mercury

Mercury specializes in banking for startups. In addition to checking accounts and savings accounts, they offer business advice and access to angel investors and venture capital.

The standard Mercury account has no minimum balance requirement, no monthly service fees, free domestic and international wire transfers in USD, and a 1% foreign exchange fee. If you have $250,000 to keep, you can qualify for a Tea Room account, which includes rewards and Tea Room partner events that give you access to venture capitalists and other business experts.

Mercury is a fintech company with banking services provided by Evolve Bank & Trust, Member FDIC.

Bank LendingClub

lending club bank logo

LendingClub Bank does more than just lend, despite what its name suggests. Professional clients can choose from a variety of operating (chequing) accounts, savings accounts and certificates of deposit.

The LendingClub Bespoke Chequing Account Pays % APY interest on balances of $5,000 or more. You also earn 1% cash back on signature-based online and point-of-sale transactions using your LendingClub debit card. You also get free debit card transactions worldwide, including unlimited discounts on fees charged by other banks. There is a minimum deposit of $100 to open the account, but after that there are no minimum balance requirements. However, you must maintain a balance of $5,000 to avoid monthly maintenance fees.

Savings account options include statement savings, a money market account or, for Class Counsel, an IOLTA or IOLA NOW account. You can sync your Lending Club deposit accounts with Mint, QuickBooks, or Quicken for easier accounting.

LendingClub offers several business loan options, including commercial real estate financing, equipment financing, and SBA loans.

American bank

US Bank offers three packages for small businesses:

The Silver Business checking account plan has no monthly maintenance fees and allows 125 free transactions per month. For more than that, you will pay $0.50 per transaction. As with all three plans, you also get mobile and online banking with bill payment, card payment processing, overdraft protection (with a Business Reserve line), and more.

The Gold Business Chequing Account package provides 300 free transactions per month, after which you will pay $0.45 for each transaction. The plan has a monthly maintenance fee of $20, but you can waive it if you also have US Merchant Banking payment solutions, an average collected balance of $10,000, a corporate deposit balance collected combined average of $20,000 or an average collected business deposit of $50,000 and outstanding credit. sales.

For businesses that maintain higher check balances and have more transactions, the Platinum Business Checking Package offers 500 free transactions and 200 free cash deposits per statement cycle. After that, you will pay $0.40 per trade. The $30 monthly maintenance fee can be waived with an average collected balance of $25,000 or a combined average balance of $75,000 of deposits and outstanding credit.

US Bank also offers a checking account specifically for nonprofits, as well as premium services for businesses with complex banking needs.

You can earn a $300 bonus when you open a checking account at US Bank, deposit at least $5,000 in new money within 30 days, and maintain a balance of $5,000 or more for the first 60 days.

Questions to Ask When Choosing a Small Business Bank

Before you make the big decision about which bank to choose for your small business, ask yourself these questions.

What to consider

  1. How many transactions am I likely to make? If you accept card payments and have a relatively small average ticket, this could be a higher number than you think. Look at the number of sales you make in a month, then double or triple that number to account for growth. Remember that transactions include cash deposits, as well as any funds you withdraw from the account to pay bills, payroll, etc.
  2. How fast am I growing? If you’re just starting out, an entry-level account may be fine for now. But if you plan to grow quickly (and what business doesn’t?), look for a bank that has varying levels of corporate accounts. This way, if you go over your first account, you won’t need to switch banks. You can simply upgrade to a higher level account.
  3. What is the minimum balance I will keep in the current account? Many business checking accounts do not have a minimum balance requirement per se, but a minimum may be required to waive monthly maintenance fees. And, unlike a personal checking account where your minimum balance might be $5 or $10, the monthly fee for a business checking account can be $50 or more. So it makes sense to give it up if possible.

The right bank can help your small business be more efficient as it grows. Choosing the best banking partner can be an important part of your business success.

Rates are subject to change; unless otherwise specified, prices are updated periodically. All other promotion information is accurate as of April 12, 2022. Additional requirements may apply. Offers and conditions are subject to change.

About the Author

Karen Doyle is a personal finance writer with over 20 years of experience writing about investing, money management, and financial planning. His work has appeared on numerous news and finance websites, including GOBankingRates, Yahoo! Finance, MSN, USA Today, CNBC, Equifax.com, and more.

LEAVE A REPLY

Please enter your comment!
Please enter your name here