How To Open A Checking Account For Your Business
So, you're starting a new retail business and you want to open a business checking account, or, maybe you already have a wholesale business and you're looking to switch financial institutions, or you are expanding your Amazon FBA business, and want to efficiently separate your business expenses and sales. Whatever your situation, there's good news. You can get a business checking account from virtually any financial institution, such as from Mercury.com, which specializes in start ups, or Capital One Small Business. There are banks that will open accounts for entrepreneurs with low credit scores, so you don't have to feel discouraged if you are rebuilding your credit while opening a new store or warehouse.
What is a business checking account? In general terms, it is a type of account that lets you write checks against the funds in your account without writing a check for each transaction. This can be great if you are cash flow challenged and need to quickly deposit the money to stay the lights on in your business. You can also use the service if you want to pay employees or vendors. If you want to keep your company's books accurate and up to date, then this is the way to go.
Many banks offer these types of accounts. Typically, you can obtain such accounts by doing an online search. Visit your local bank, pick up the phone book, and look for their business checking services. Often, you can talk to a banker who will be able to direct you to the right company for your needs. In addition to having accounts, many banks provide debit cards as well.
You may wonder why you'd want to open an account separate from your personal bank. For instance, suppose you have an Internet business and you do a lot of sales on the Internet. Because your Internet sales may be done with checks, you want to keep track of all transactions and ensure that they are properly deposited into your company checking account. Opening a business checking account with your regular bank will allow you to deposit checks into your company accounts anytime. There is no limit on how many company checks you can have.
When you decide to open a business checking account, it is a good idea to do some research. You can open an account with any bank and the company will report your business transactions to the appropriate credit reporting agencies. However, if you are just starting your business and don't yet have much income, a small business checking account might not be a good idea. Small business checking accounts typically have fewer account features than business credit card accounts. But, you'll still be able to get a line of credit, take money out of your company accounts, and make deposits into your company's general funds.
When you start your business, you'll need to get your bank account opened before you deposit any cash into it. However, you can usually still open the account using your personal bank. Some banks require that you use a specific type of business check card to open the account. Others don't have any minimum requirements. It will depend on the bank where you conduct your business that determines the type of account you can open.
If you are thinking about starting your own business or running a small business from your home, a business checking account may be your best option. You will have easy access to your company's funds. It will give you the flexibility to manage your finances and will help you stay organized. A business checking account offers many financial benefits. These benefits include:
As you can see, there are many ways to use a business checking account. For some people, a bank account is a requirement when they open their own business or open a new small company. There are many other people that use their bank account as an additional account. No matter what your reasons are for wanting to use one type of bank account, it is important to understand the different types available and choose the one that meets your financial needs.
There are banks that offer remote check deposit, in which you scan or take a picture of a check, upload the image, and you will be credited without having to physically deposit the paper check. Some banks, such as check, will give you overdraft services, while many banks can give you a credit line that you can use in conjunction with your checking account.
There are financial institutions that offer cash back credit cards, such as American Express Blue Business Cash and Capital One's Spark, while other banks offer reward credit cards, which can give you air miles, such as CitiBusiness AAdvantage, or other perks based on your credit card usage. Note, the banks make their money off these credit cards when businesses fail to pay their balance in full, and then owe late fees or interest on their balances. So while the perks of business credit cards can be very rewarding, remember that their associated fees and interest can potentially be very onerous.
You can also check out Brex.com, which bills itself as an alternative to a business bank.