11 Factors Small Business Owners Need to Consider Before Choosing a Bank

Running a small business is full of tough decisions. Choosing a bank shouldn’t be one of them. That’s why we put together a handy checklist of all the things you need to consider before opening a bank account for your small business. Let’s get into it!

When opening your business’s bank account, make sure to shop around for the best interest rates to grow your money. Keep in mind the bank’s service fees will offset your money’s growth.

Banks charge all sorts of fees. Some of these include overdraft fees, minimum balance fees, monthly maintenance fees, ATM fees, and wire transfer fees. Make sure you’re aware of all the bank’s fees before you hand over your cash.

Some banks have limits or thresholds on the number of certain types of transactions that can occur over a specified amount of time. Some of these include the number of checks that can be deposited, how many electronic transfers are allowed, or the amount of transactions that are posted. A business checking account may help you avoid some of these types of limitations (and therefore fees).

A physical branch can be helpful if you make frequent deposits or if you need help managing your business’s account. You’ll also want to consider how vast a bank's ATM network is to avoid any ATM fees.

If your business is going to accept credit and debit card payments, you’ll need merchant services. Find out if the bank you’re considering offers these services and if their rates are better than those of a third-party vendor.

Transferring your cash and information should be as easy as possible. Make sure you can sync up your accounting software with your bank account. Banks may offer opportunities for additional software integrations for functions such as payroll or taxes. The more streamlined your finances are, the easier they will be to manage.

Check to see if the bank has a strong introductory offer. Some offers can include bonus cash for making an initial deposit or a sum for maintaining a balance above a certain value.

Consider the quality of the bank’s customer service. Do they have representatives that only handle business accounts? Can you contact a representative when you need to? These are factors that can make a big difference.

It’s crucial that your bank is insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC insures all types of deposits, including those from checking and savings accounts.

Does the bank have a good reputation and positive online reviews? Did another business owner recommend the bank to you? Online or in-person reviews can help you make a more educated decision.

Small business owners need a few documents to get their business’s bank account up and running. These include: 

• Employer Identification Number (EIN) or a Social Security number, if you're a sole proprietorship
• Your business's formation documents
• Ownership agreements
• Business license

We hope you’ve enjoyed learning all about what to look for in a bank for your small business. Shop Zoro.com and keep your bottom line in check with everyday low prices on all your business’s supply needs.

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