A business bank account needs facilities and features that are different than those of a personal bank account. Therefore, stop and think before you open a business bank account with the bank where you have a personal account. You need to research the Business banking facilities of more than one bank before you select the one where you can open an account.
The Advantage of Opening Business Account with a Familiar Bank:
There are advantages of banking with a bank with which you already have a personal account. The bank authorities may be more helpful if they have known you for long and know that you have a good financial and debt repayment record.
Advantages of Shopping Around before Opening a Bank Account:
However, there are many advantages of shopping for a bank account. You will have more options regarding the kind of banking services that suit your business needs the best. Since many banks offer deals to attract businesspersons, you can take the advantage of the deals to get an enhanced package.
How to Choose a Business Banking Account:
You must keep in mind that you need not operate a single business account; depending on the size and needs of your business, you could have two or more business accounts. Here is a checklist to consider when you select a banking account.
1) Do you make frequent transactions at the bank? In that case, you may want to consider monthly transaction fee, rather than a fee for each transaction completed.
2) A merchant account is a good idea if a large chunk of your bank transactions is carried out through debit and credit cards.
3) If you need to conduct many overseas transactions, then a foreign currency account is a good option.
4) If you need more than one business banking account, you need to consider the following:
• Holding accounts with many banks will give you facilities you need for different aspects of your business.
• Holding more than one account with a single bank makes you eligible for many deals offered by the bank.
Opening a Business Banking Account:
Keep the following in mind when opening a business banking account.
1) Have a meeting with your business consultant before you open a business bank account.
2) Bring your documents, including proof of residence, age, and income, since these will be needed by the bank to verify your statement.
3) The bank will give you an account-opening mandate so you can open an account with them.
4) If your business is incorporated, you will need to submit a certificate of incorporation.
It is always a good idea to separate your business account from your personal account, even if you run a small business or work from home. It makes it easier for you to avail business loans, and other facilities related to Small business loans. Consider the checklist given above when you shop for or open a business banking account. If you need to, you can even hire a business consultant to help you select a good bank to open an account with.