Types of Business Bank Accounts & The Benefits of Opening One
When is it the right time to open a bank account for your business? Simple. As soon as you start spending or accepting money as a business entity! This way, you'll remain legally compliant as well as protected.
To help you get started, let's go over the different types of business accounts:
A small business checking account is fitting for everyday transactional functions. With it you can make deposits and withdrawals, write checks, and receive or send out money electronically. Though seemingly not too different from a personal checking account, the difference is found in cost. Many personal checking accounts do not charge a monthly fee. Business checking accounts, on the other hand, are almost always tethered to fees.
If you want to save for major purchases, build an emergency fund while earning interest, and prevent overdrafts, a savings account is the way to go. Requirements for opening deposit amounts vary. Keep in mind, if your business is still in its early stages, opening a savings account is not a high priority, as it may not meet the minimum account balance requirements yet.
If you will be accepting debit and credit card payments from customers, you will need a business merchant account. When your customer uses a credit or debit card, the money travels directly into your merchant account and is then automatically transferred into your business account. However, each merchant account has its own fee structure. For that reason, it's important that you educate yourself on the costs of utilizing one before signing up.
The Benefits of Opening a Business Bank Account
Opening a small business bank account ushers in the separation of your personal finances from your business finances. Meaning, it makes it easier to implement and maintain the organization of your business.
Moreover, it's an easy way to add a touch of professionalism and establish credibility. This, in turn, affirms your customers that their personal information is secure when they pay for goods and services with a credit or debit card.
It's a win-win.
Need to get your business funded? Apply here at Click-N-Loans.com or call us at (561) 525-5497 to speak with a funding specialist. We're committed to helping you find the financial solutions your small business needs!