Benefits of business banking

If you’re not using a business banking account, you could be missing some excellent opportunities, including lower or no monthly account fees, the services of a personal banker who know your business needs, a free credit card, and even a line of credit for your business.

With a business banking account, many banks make credit cards much easier to obtain and, sometimes, free of charge. Regular use of that card for business-related transactions is an excellent way to keep a record of monthly business expenses. Some banks even supply online software to help you organize those expenditures and prepare your taxes.

A business checking account may provide a number of free transactions, saving you money. While choosing a “free” business checking account can be tempting, be aware that these accounts are generally designed for small or new companies that don’t make the number of transactions a larger company might. Balance the number of “free” checks you get with the account with your company’s monthly checking activity. If you typically write more checks than allowed, you may find using a business checking account that charges an ongoing fee but doesn’t charge for writing checks is a better deal.

A line of credit for your business is generally easier to get once you have a business banking account. Many banks will provide a line of credit to small business owners who have had an established business for two or more years, and provide tax returns and other documentation proving ownership. A line of credit can assist you with cash flow, payroll and inventory, or provide emergency funding.

Custom services with business banking

Banks regularly introduce services designed to help businesses. With a business banking account at Bank of America, for example, you can enroll in Express Invoicing Service for a small monthly fee. Express Invoicing allows you to create custom business invoices and invoice your customers electronically. It even allows you to send past-due notices. The service makes it easy to keep track of current, past-due and paid invoices.

Many banks also have business bankers who specialize in meeting the needs of their business accounts. Your business banker should keep you informed of any new services or programs at the bank that could benefit your company.

Most banks allow you to open a small business banking account online with quick, easy access to customer service people who can answer any questions you have throughout the process. However, while it’s convenient to handle banking at ATMs and online, especially if your work keeps you on the job until after banking hours, it’s also helpful to have your account with a bank that is conveniently located for those times when you need to speak to a banking representative personally.

To apply for a business bank account

With most banks, it’s easy to apply for a business banking account. Whether you apply online, over the phone, or in person, the bank will need:

• Business name, address (no P.O. Box), phone number and fax number
• Primary contact name, phone number and contact email address
• Date business was established and ownership type
• Number of owners and employees
• Business type (Other documents may be required depending on the type of business.)
• Tax Identification Number
• Annual revenue