By Chris Lee, Executive Vice President, Chief Financial Officer, Gate City Bank
All that hard work and sacrifice has finally paid off, and you’ve achieved your dream of taking on the perfect venture. This is the moment you’ve been waiting for – the opportunity you’ve been craving. You’ve spent countless hours formulating a plan and seeing it through. And now you’re ready to watch everything come to life.
Indeed, the time to take care of business – to boldly embark on your entrepreneurial journey – is now. Ready to take the next step? Keep reading.
At this point, it may seem easier to continue using your personal banking account for your business because it’s one less thing to worry about on your long list. However, having a separate business banking account provides a foundation for more financial stability and assists in keeping your key business services in order. Most importantly, a business banking account provides perks that a personal account does not.
So, why open a business checking or savings account?
A good place to start with your business account selection process is finding the right financial institution for you. It could be the same organization where you already do your personal banking, or a bank that offers more options and personalized add-ons.
Be sure to set up an appointment with a treasury management consultant to discuss your specific business model and what you’ll be using the account for. This is key to identifying which documents you’ll need to open a business account, and it will assist you in choosing the best account options for your unique business needs. At Gate City Bank, we feature various business options aimed at getting you connected with the right account – and our service is aimed at keeping you there.
During your meeting with a business banker, don’t forget to discuss the features, fees and costs of different accounts. These can include:
Be aware of minimum balance requirements and how they can affect costs. It’s also important to consider the unique needs of your business. For example, an online-only business where debit and credit are the only means of payment will have different requirements than a brick-and-mortar enterprise that requires frequent cash deposits or withdrawals for business use. Depending on the nature of your business, you’ll want to discuss your needs in detail to avoid selecting the wrong account.
A business account can also combine the features of making and receiving payments, provide easy access to online and mobile banking, build credit and assist with setting up a plan for savings. Making and receiving payments allows you to have your hard-earned money deposited directly into your accounts, which you can then closely monitor and control via online or mobile banking. Plus, additional merchant services and payment processing have become so important to financial success.
Online and mobile banking features will give you access to mobile deposits or remote deposit capture that let you get money in the bank 24 hours a day, seven days a week at your convenience. You’ll also be able to transfer money, check balances, get email and text alerts and control which employees have access to electronic banking features.
Building a business banking relationship can help when it comes to credit needs, as well. Maybe you aren’t sure at this point in the game if you’ll need a credit card, a line of credit or a small business loan, but you’ll want to consider these possibilities when looking for the right place to do your business banking. Most banks have special offers or rates available to current customers! This also pertains to setting up a business savings account, since some banks offer higher rates to customers with more than one account type.
As always, ask questions specific to your business. With savings, especially, look for competitive interest rates and daily balance requirements to find the best match for your saving goals.
Take the time to consider all your possible needs before committing to a financial institution to ensure that what they have to offer is what you’re looking for. We’re always here to help with your banking needs and provide direction on how our unique services can simplify your business. We would love to help your business – and your revenue – grow.