financing home repairs to avoid further damage

4 Things To Look For In A Business Checking Account

29 July 2020 by Albane Francois

You may not give much thought to your business checking accounts outside of what the current balances are. However, depending on options you've chosen, your business checking account can either save time or end up causing grief.

There is no one-size-fits-all checking account for a business. Every business is unique, and the checking account which works best for your business may not work so well for the company next door. Keep these four things in mind when you are looking for your next business checking account.

The Minimum Balance Requirement

Minimum balance requirements vary by the financial institution and account type. Check the minimum balance you must have in each business checking account you're considering.

If your business finances swing widely every month, you'll want to find an account with a low minimum balance requirement or low fees. Otherwise, you'll be hit with costly penalties and fees each time your balance dips below the minimum.

The Fee Schedule

Review the complete fee schedule from each business checking account provider you're considering. Compare those fees very carefully and think about your business activities while doing so.

If, for example, you have a lot of customers overseas, you want an account with the lowest currency conversion fees. This, however, won't matter to a business that almost never deals with international customers. Should your business sometimes have bounced checks, an account with the lowest bounced check fees is a wise choice. This won't be a concern if your business almost never takes in a bad check.

Look for accounts that will cost you the least in terms of fees based on what normally goes on in your business. Otherwise, you could find yourself losing money to fees and penalties each month.

The Cash Deposit Limit

Some institutions place a limit on cash transactions for business checking account customers to sidestep storing large amounts of cash. You may need an account with higher cash deposit levels if you run a business where a lot of customers paying in cash. Having to try and find a place to safely store cash because you've gone over a daily or monthly cash deposit limit is not a scenario you want to find yourself in.

Online Banking Services

Just about all business checking accounts will offer online services. Make sure the account you chose has the online features you want. This will depend on the nature of your business banking transactions and activities.

If you need to transfer money between business accounts, for example, go with an account that offers this ability. Paying bills through your bank account portal might be another feature your business could use.

The right business checking accounts can make running your business easier and more cost-effective. Before you decide which account to get, consider what your business really needs.

Share