What to consider in a business checking account.
Every business needs a business checking account, or Demand Deposit Account (DDA). Whether you use it for maintaining a clean separation of personal and business finances, establishing credibility with your clients or as the first step in forming a valuable banking relationship, a business checking account is crucial for your success.
One thing to be mindful of is that business checking accounts are not one-size-fits-all. There are many factors that go into finding the right fit for your small business. Identifying your needs can save you money on excessive monthly fees or take advantage of possible perks. Here are a few things to consider:
The fit
Naturally, your account should fit the size of your business today, yet be flexible enough to grow with you over time. The ability to upgrade your account later to match growing transaction numbers will save you a bundle in long-term operating costs. Plus, you may end up qualifying for perks in the future, like loan discounts for equipment or real estate.
Account access
How you access your money has a huge impact on your business. You’ll want to ensure the account comes with a free debit card for business purchases and an extensive ATM network in your area. Online banking (and even mobile banking) is also a must-have in this day and age. Running a business is not a 9-to-5 job—you’ll want to be able to review all of your business transactions at any time. You’ll also want to be able to make deposits any time, without relying on branch hours, so remote deposit capabilities are definitely worth considering.
Fraud
Fraud is a huge factor to think about when it comes to banking (and all things financial). Be sure your business account is serviced with banking alerts so you can be notified immediately of anything amiss on your account. Even better, open an account with a bank that prioritizes fraud mitigation. That way, you’ll stay knowledgeable of the ever-changing fraud landscape in all areas of your business.
Beyond the account
It could make your life a lot easier to have a one-stop shop for all of your business’ financial needs, and a bank with a wide range of solutions can provide support for any question or challenge. Among others, look at the bank’s offerings for:
- Merchant services
- Small Business Credit Cards
- Small Business Loans
- Equipment Financing
- Real Estate Financing
- End-to-End Bill Pay
- Payables Solutions
When choosing your bank account, plan for your business’ future growth and needs. Switching financial institutions can be a hassle, so knowing that your bank can handle everything down the road will provide more peace of mind. Plus, having extended offerings is a sign that the bank has dedicated considerable resources to their business clients.
Personal service
Imagine only needing one phone number when you have a financial question. Your bank or personal banker can work with you one-on-one to help identify helpful financial solutions, keep you updated on fraud trends and ensure that you’re paying as little as possible in fees. And as you add more financial solutions over the years, having one point of contact will be a huge time saver, in addition to providing you consistency in your bank relationship.
Consider Commerce Bank
Your business isn’t like any other. Why should your Small Business Checking account be? Commerce Bank has developed a variety of small business checking accounts to match the way you bank. Take a look at our checking account offerings as well as our extensive business financial solutions, including loans, lines of credit, merchant services and more.
