Business banking is quite simple when you have a personal banker who can explain your options. Otherwise, it may seem complicated, especially for first-time business owners. There are a variety of business checking accounts and other services available that can optimize your business’s deposits and save you money, but it’s a good idea to know your options before making any final decisions. Because there are a number of mistakes that business owners may make when opening business bank accounts, avoiding them can help ensure that you make the best financial decisions for your business. Here are just a few of the most common mistakes to avoid when pursuing business banking services.
1. Opening Your Account Online
Although some banks offer opening a business account online, it doesn’t mean it’s always the right thing to do. Often, the time you may save in account opening convenience can take more of your time in the future. The personal banking professional who opens your account can determine the right account for your business and answer questions you may have regarding the features of the account and benefits to you. Plus, once you meet your personal banker, you have a key contact for any future needs or issues. In today’s world of telephone menus, transferred calls and calls that often aren’t returned, time is a valuable commodity for a business owner. A personal banker is the best resource.
2. Choosing the Wrong Bank
Although most banks offer the same services, their fees, and loan and deposit rates may differ. If you want lower fees on your deposit accounts, look for a bank that provides you with that option. If you are looking for higher rates on your savings and investments, there can be a substantial difference in the interest you earn on your deposits or interest payments on a loan.While you may just need a business checking account right now, you may need to apply for a loan in the future, so before you decide on a bank, confirm they can continue to provide what you need when you need it. For ongoing convenience, make sure the bank you choose offers mobile check deposit.
3. Not Knowing the Features of the Account You Open
Most business accounts have monthly minimum balance requirements. It’s important to be aware of any all the account requirements to avoid incurring additional fees. Think about setting your own personal minimum slightly higher than the required amount to avoid a service fee or an expensive overdraft fee. A personal banker should fully explain your options.