You’ve just launched your new small business and are eager to get it off the ground as soon as possible. With so much on your plate, you might not even have time to think about which business checking account is right for you.
However, this is one of the most important decisions you will make regarding your company because it can directly impact its financial success.
Checking accounts come in many flavors, some better than others, depending on your specific needs. Therefore, when choosing between personal vs. business vs. co-owner accounts or whether to open an individual or joint account, there are several factors that you should consider first.
Let’s take a look at some of the significant benefits of online business checking accounts for new companies:
1. Overdraft Protection
If your new business account has overdraft protection, you’ll be able to avoid incurring any fees for bouncing checks or any other overdrawn transactions. However, if you open an account without this feature, you will incur a hefty fee each time you stretch, which could significantly hinder your ability to keep your business afloat.
When choosing between business checking accounts with and without overdraft protection, make sure that you choose one that is appropriate for your company’s financial standing and the amount of money you expect to be deposited every month.
For example, a large corporation may be able to qualify for a business checking account with a high overdraft limit. Still, a brand-new small company may not be able to get approved for anything other than one with low or no overdraft protection.
2. Free Online Banking
If you are new to running your own small business, you may not be accustomed to checking your online banking account multiple times daily. However, if you open a business checking account, you’ll be able to keep track of your finances 24/7, 365 days a year.
In addition to being able to log in and see your account activity and balances at any time, you will also be able to make payments and transfers, set up automatic payments, and send and receive funds online.
This can be a huge benefit for business owners, especially those with hectic schedules who may not have time to log in to their accounts frequently.
3. Access to Lending Team
Many businesses checking accounts come with access to a lending team that can help you determine how much money you can borrow based on your company’s current financial situation and projected earnings.
This can be extremely helpful for new companies looking to secure a business loan and get their operations up and running as quickly as possible.
When choosing between business checking accounts with and without access to a lending team, make sure that you select one that is appropriate for your financial situation and that you keep your balance well below the maximum amount for your account.
This will help you avoid incurring unnecessary fees and give you a better chance of getting approved for a business loan.
In the end, your new company’s best online business checking account will depend on your specific financial situation, the amount of money you expect to deposit each month, and your short- and long-term goals.
Therefore, you must do some research and choose an account that best meets your needs.