Many people shy away from away establishing a business bank account when they open a business because they fear it will be difficult. While some financial affairs are challenging, the following video illustrates how opening a business account is not hard and is actually an essential part to beginning a business.
Before you open an account however, you need to find a bank first. As you search, you need to consider the location, size, and services. Location is important since you want a bank that is easily accessible.
If you intend to keep your business small and local, you should look into a regional bank. On the contrary, if you intend to expand and if your business will require travel, you should go with a large, national bank. Services go hand-in-hand with the size since a larger bank would likely offer more services than a smaller bank and vice versa.
After you have chosen a bank, you need to identify what kind of account is right for your business. As you do so, think about various features you may need such as online banking or a debit card. In addition, think about the number of transactions you will make and whether you need to make them on a weekly or monthly basis.
Now that you have found a bank and a banking account, the next step is to apply for your account. Most banks allow applicants to apply by phone, online, or in-person. To make sure you have everything you need to apply, visit the Abbey Business Banking Checklist for reassurance.
Once you have a business bank account and a working relationship with your bank, you can then look into other opportunities such as a business savings account to accumulate interest and a business credit card when funds are short. Also, by establishing a business bank account, your business will appear more professional and credible to both clients and investors.