One of the first things to do when starting a new business is to open a bank account for your business. You will need to consider several things, including loan and transaction costs, the facilities the bank offers, and the type of relationship you want with a bank. A business account is essential if you are creating a limited partnership or partnership. While you can use your own personal account if your business is a sole proprietorship, it is advisable that you have a separate business account to manage your business finances.
Now that you know you have to open a bank account, how do you do it? Can you use the same bank that you use for your personal accounts? Of course he can! But they may not offer the best deal for your business. The considerations for opening a business account are quite different from those for a personal account – you could miss out on lower fees and higher interest on a credit limit. Over an extended period, you could be depriving your business of a significant amount of money. Before signing up with someone, take a look around you and understand what’s available.
We have rounded up the 5 most important factors to consider before choosing a bank account:
1. Bank charges – This is a key point to consider: how much will it cost you to have a business bank account? Make sure you know exactly what charges will be applied to your account before signing up. The more check and cash transactions you have, the higher the fees you end up paying.
2. Online Services: Does the account offer online services? This is an increasingly important service, and most banks now offer an Internet service so you can check the status of your account day or night. By using this service, you can manage your account transactions in a fraction of the time it used to take in the old days.
3. Interest rates: interest rates can vary from bank to bank. Consider the overall benefits that an account would provide your business and decide accordingly.
4. Small Business Counseling – Select a bank that has a specialized small business unit. This could be of great help to you when you are establishing your business and by establishing a good working relationship with them, you can reap the benefits of their experience.
5. Compare Prices – Be sure to compare multiple business account offerings and compare the costs and fees associated with each one. Generally, you should compare at least three accounts before focusing on one.
Choosing a bank account for your small business is an important stage in the startup process. So take the time and effort to get the best banking deal for your business.