Whether you run a restaurant, a clothing boutique, a consulting firm, or any other type of business,the right bank account can make your life easier. But the wrong account can cost you time and money. To make the most of your business banking experience, you need to choose your account carefully.
Consider staring your search by making a list of the features you need with your bank account. That may include the ability to write cheques and make wire transfers, but beyond those essentials, you may want to think about your future needs. In particular, you may want to choose a bank that offers business loans and lines of credit. That way, if you need to apply for funding, you don’t have to restart the process.
Once you’ve honed in on the services you need, consider taking some time to compare the cost of different bank accounts. Some banks charge a monthly fee, while others charge per transaction, and still others use a combination of those two approaches. If you don’t plan to use your account that often, you may qualify for a free or low-cost business bank account. For instance, at the time of writing, the Royal Bank of Canada offers a free small business e-account for low-volume customers who’re willing to handle most of their transactions online.
Keep in mind that you don’t necessarily have to choose a bank. You may want to look at credit unions. These not-for-profit financial institutions often offer lower rates than their bank competitors, and they tend to approve business loans more readily. As a result, they typically have higher customer satisfaction ratings, especially for micro business with fewer than five employees.
Ideally, to stay organized, you need a business bank account that’s separate from your personal account. However, you don’t necessarily want to open your new business account at the same place where you have your personal accounts. Instead, give yourself some time to research your options and make sure that you’re choosing the best financial institution for your unique needs and your bottom line.