Starting a new business is like being dropped into a maze—you know there’s a way through, but every turn brings a new challenge. It’s easy to get overwhelmed, so you look for quick wins. Opening a business checking account? That seems like a no-brainer. After all, a bank’s a bank… right? So, you open an account with the bank right around the corner. It’s quick! It’s convenient! It’s……good enough.
Until it isn’t.
Suddenly, you’re hit with fees for not keeping a minimum balance. You discover mobile deposits aren’t even an option. Or worse, you’re stuck on hold for hours just trying to log into your account. That “quick win” just turned into a long-term headache.
Turns out, not all banks are created equal, and picking the wrong one for your business can cost you time, money, and your last shreds of sanity. The right account can help your business run smoother, keep your costs under control, and save you future headaches. So, before you sign up for whatever’s good enough (or whatever comes with the coolest stress ball), let’s take a look at what really matters when choosing a business checking account.
Bank Fees
Bank fees are like paper cuts. They are small, sneaky, and way more painful than you expect. Some banks seem to charge for everything. There are monthly maintenance fees, transaction limits, minimum balance requirements, ATM fees and on the list goes on and on. Nothing cuts more than feeling like you are losing money just because you have it. If you deal a lot in cash, then ATM and deposit fees can add up fast. If your business has frequent sales, transaction limits suddenly matter a lot more. Some banks will even charge you an extra fee to allow your accountant access to pull transaction information. Before you commit, be sure you understand exactly what fees come with the account. Look for a bank that’s upfront and reasonable, or better yet, find a bank that won’t charge you for a standard business account.
Technology
In a business, efficiency is everything. If your bank’s tech can’t keep up, you’re the one stuck doing the extra work. Can you deposit checks from your phone with mobile deposit? Can you schedule bill payments directly from the bank interface? Here’s a big one, can your bank give your accountant 3rd party access and support integrations with major software like QuickBooks? Your business checking account should come with solid tech features in both the online and mobile interface, including user-friendly dashboards and seamless integrations with tools like QuickBooks. These features save time, reduce your accounting costs, and make it easier to keep up with your finances.
Bonus Perks and Features
While fees and functionality are crucial decision points, don’t ignore bonus perks or other special benefits that may be offered with a business checking account. Here are just a few benefits the bank may offer:
- Free business debit cards to employees
- Discounts on business tools or services
- Early direct deposit
- Free incoming wires
- Cash back on debit purchases
These extras are just the icing on the cake, but if you are faced with choosing between two very similar accounts, the perks could be the tipping point. Just be sure that the perks are beneficial for your business.
Payment Processing
Owning a business means nothing if your customers can’t pay you. Whether you are selling cupcakes, building rocket ships, or working for homeowners, your ability to accept payments is essential, yet many business owners overlook this when choosing a bank.
Before you choose a business account, ask yourself how your customers are likely to pay you or how you prefer to be paid. Maybe you want to use a payment processor like Square, Clover, Toast, or Paypal. How well does your bank work with those processors? How easy is it for you to move the funds from the processor to the bank? Does the bank offer its own tools for payment processing? If so, how much does it cost? How long do you have to wait for your deposits? If your bank makes it harder to get paid, or more expensive, then it isn’t helping your business. Pick a bank that makes revenue collection as easy as possible.
Customer Service
Customer services may not be at the forefront of your mind, but when something goes wrong, customer service is everything. Whether it is a tech glitch, a quick question about a wire transfer, or something serious like suspicious activity, you want to know that someone competent (and preferably human) will work with you to resolve the issue and put your mind at ease.
Ask around. Read reviews. Think about what matters to you most. Is it extended lobby hours, dedicated business support, or maybe you prefer to be on a first name basis with your banker? You need to choose a bank that feels like a partner because when it comes to your money, you want someone who cares as much as you do.
Financing and Credit Options
Even if you aren’t looking for a loan today, you may need one tomorrow. It can be difficult for small business to access credit, especially at the beginning. Not all banks take the same approach to business financing. Some banks specialize in SBA loans, while others have more limited lending options.
National banks, while offering more formal lending programs, may have stricter requirements or rely heavily on automated systems. That can make it tougher for newer or unconventional businesses to get approved.
Sometimes if you are just outside the criteria of the bigger banks, local banks and credit unions may give you a chance. They may be more willing to lend to small or newer businesses, especially if they believe in your expertise in the industry. They’ll consider your business plan, cash flow, and the collateral you can pledge.
The Bottom Line
Choosing a bank for your business checking account is a decision you should make carefully, it provides a solid foundation for all your business operations. The right banking relationship will make your business run smoother, faster, and with less frustration. The wrong bank account can seem easy at first but waste your time with poor support and technology that leaves you feeling extremely frustrated. Don’t just go with whatever is nearby. Do research. Consider what your business needs and what it may need in the future. Then find the bank that checks your boxes. If you have any questions or need recommendations, we are here to help! We work with hundreds of small businesses who bank across a variety of financial institutions. We know which banks our clients have good experiences with, and we know which banks have solid tech offerings too!