Looking for the best business bank account for your small business’s needs?
One that offers attractive benefits, provides the services your business needs, and streamlines your financial operations?
It can be difficult to find the right banking partner for your business. But it is more than worth the while to take your time to find one.
Because having a good banking partner can make all the difference for your small business. It can mean saving hundreds of dollars in unnecessary fees each month, hours spent on the phone with customer service, and more.
As a small business owner, you really can’t afford to be stuck with a bad banking partner.
But, luckily you’re here. So we’re going to make sure that doesn’t happen.
In this article, we’ll show you how to make sure that you’re picking the best business bank account for your small business. All so you can save time, money, and headaches for years to come.
Best Business Bank Account for Small Businesses
The best business bank account for small businesses is one that will help you manage your business expenses, does not charge you unnecessary fees, and overall makes your life as a small business owner as easy as possible Read on below to find out how to find the right bank for you.
As a small business owner, there are a lot of factors you need to consider when picking the best business account for your business.
You need to look for banks with lower minimum deposits, little to no account fees, and a simple and straightforward account opening process.
But, most importantly, a bank that is used to working with small businesses. Because that makes all the difference.
If a bank is attuned to the needs of small businesses, it will take care of you far better than another bank will. And it will also be more welcome to your business in the first place.
We’ll cover all of this and more in this article…
Table of Contents
- Challenges of Finding a Bank
- Traditional vs. Digital Banking
- Top 2 Places to Unlock the Best Business Bank Account
As a bonus, we’re going to share with you how you can get started opening the best business bank account for your small business today.
Before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Business Banking Starter Guide. It’s designed to help your small business find and open the best business bank accounts with the services you need around the world.
Challenges of Finding a Bank That Accepts Small Businesses
As a small business, it’s crucial to open an account with a bank that understands and matches your banking needs. In other words, offers you the products, services, and benefits you’re after.
Unfortunately, this isn’t as easy to find as you’d expect.
Not only can it be extremely difficult for small businesses to open accounts, but it’s even more challenging to find banks that will take you and your business seriously.
The reason for this is that many banks perceive small businesses to be risky or unprofitable for them because they are not well-established and lack a wide customer base.
But, for many small businesses, this is far from the truth.
Sadly, this isn’t the only challenge you’ll face.
Here’s a look at other common challenges you’ll likely face when choosing where to open the best business bank account.
Challenges Choosing the Best Business Bank Account:
- Finding a bank that accepts small businesses
- Keeping up with and adapting to changing regulations imposed by bank regulators
- Lacking experience navigating the account opening process
- Having inaccurate details on how to open a bank account as a small business
- Being unable to meet deposit requirements
- Finding a bank that offers remote opening, if necessary
Each of these challenges can be major obstacles to whether or not you can successfully open the best business bank account for your small business.
So, before applying, it’s important to know which banks will open accounts specifically for small businesses. And even which branches and bankers are the most helpful and welcoming.
Because if you are dealing with the right people, everything becomes easier.
This will help ensure that you have low to no account fees, lower minimum deposits, and easier payment processing systems.
This is critical for businesses that are just getting started as they have lower operating costs, capital, and less spending money.
So, before you apply to open a bank account, it’s important to understand which banking options are available and best suited to your banking needs. Let’s have a look at what your options are.
Traditional vs. Digital Banking
For small businesses, looking to open the best business bank accounts for their businesses, you can look to either traditional brick-and-mortar banks or digital banking platforms.
Of course, the right banking option for you will highly depend on your banking priorities, the industry you’re in, and the banking services you need.
To help you make this decision, let’s discuss each banking option in more depth…
Traditional brick-and-mortar banks have been helping small businesses conduct business operations for decades.
Small businesses typically look to open accounts with traditional banks because they’re more familiar. They provide access to standard banking services, including financing, dedicated account managers, own-branded ATMs, and more.
Additionally, small business owners often prefer traditional banks because you can deal with banking matters face-to-face.
With this in mind, let’s look at the pros and cons of opening the best business bank account with traditional banks as a small business…
- Establishes a banking relationship that can help with financing and other services in the future
- Physical bank presence
- Access to multiple ATMs
- Face-to-face customer service
- Access to financing & loans
- More efficient when handling cash payments & withdrawals
- Difficult onboarding process
- Higher monthly account fees
- Not all banks are safe to open accounts with
- Lower interest rates on deposits
- Restrictions on where you can do business (i.e. restricted countries)
- Higher transaction fees
- Opening accounts can be time-consuming
- Remote opening is not always an option
- Higher initial deposits
Although traditional banks do offer benefits for small businesses looking to open the best business bank account, there are some drawbacks to choosing this banking option.
For instance, traditional banks typically charge higher fees and offer lower interest rates on deposits.
And, as we’ve mentioned, opening accounts with traditional brick-and-mortar banks can be challenging for small businesses.
Again, choosing to open a business account with a traditional bank will highly depend on your unique banking requirements.
But, with that said, let’s look at the pros and cons of digital banking. That way, you can make an informed decision on what banking option is right for you.
In recent years, digital banking platforms have become an increasingly attractive banking option for foreign small businesses.
This is especially true for those businesses who struggle to open accounts with traditional banks because of overlystrict onboarding processes and high deposit requirements.
In many cases, not only is it easier for newer small businesses to open accounts with a digital banking platform, but it can also be much cheaper.
With this in mind, let’s look at the additional pros and cons of opening the best business bank account with digital banking platforms…
- Quick onboarding process
- Little to no service fees
- Typically higher interest rates on savings accounts
- Low to no account opening deposits
- Low-cost international transfers
- Accessible online platforms
- Access to debit cards
- Online payment processing
- Lack of customer service options
- Limited ATM access
- Difficulty depositing cash directly into the account
- No physical branches
- Limited access to financing
- Possible restrictions on withdrawals
Overall, digital banking solutions are excellent. And they’re getting better all the time.
But unfortunately every now and then there are things that digital banking platforms can’t do.
So, if you’re a new startup, it is definitely worth considering opening accounts with both a traditional bank and a digital banking platform.
Well, holding an account with a traditional bank will be more efficient when depositing and withdrawing funds. Making it easier to manage cash on hand.
And as your business begins to grow it’s important to have that banking relationship when you need to access additional services.
But then, we recommend that you complement this with a digital bank account, which can help to keep your business costs low. More specifically, it will allow you to make quicker transfers while paying much less in transfer fees.
Now, whether you open an account with a traditional bank or decide on a digital banking platform, finding a bank that will accept your specific client profile as a small business is the next challenge.
With this in mind, let’s look at where small businesses can open the best business bank accounts.
Where a Small Business Can Open the Best Business Bank Account
When it comes to deciding where to open a business bank account, the first step is to pick your jurisdiction. One that will give you the best benefits and also access to the online payment processing systems you need for your business. .
Here are two of the top banking jurisdictions for small businesses to open the best business bank accounts.
We’ll go through each and outline the common challenges small foreign businesses will face when opening there, the benefits they can unlock, and how to start opening accounts there today.
So, with that said, let’s first look at opening a business bank account in the US.
Opening the Best Business Bank Account in the US
For many small businesses, opening a US bank account is a very attractive option. This is because a US bank account comes with some of the best business benefits.
For example, a US bank account gives you access to the best payment processing services and can even give you access to US credit cards, which have by far the best rewards for small business owners in the world. .
Of course, opening an account in the US comes with its challenges. You’ll have to be able to navigate banks’ strict onboarding processes, meet their deposit and documentation requirements, and know which banks will even accept you.
But if you know where to go, opening a business bank account in the US is 100% possible…
In fact, there are banks in the US that do cater to small foreign businesses that have much lower deposit requirements.
These will allow you to tap into a wide range of banking products and services specifically for small businesses.
And as mentioned above, if you can successfully open an account in the US, you’ll be able to start building a US credit history to access credit cards, financing, mortgages, and more.
But in order to open a high-quality account successfully, it’s key to know where to go. , Specifically which bank, branch, and even banker to contact.
If you’re interested in learning more about how you can open the best business bank account in the US as a small business owner, you can access our premium members-only report “US Banking for Non-Residents, Foreigners, & Int’l Businesses” for more information.
This report shares everything you need to know about opening accounts in the US and how you and your business can benefit. Including which banks open accounts for foreign businesses, how to navigate the account opening challenges, and even how to open accounts 100% remotely.
[Note: When you join GlobalBanks USA our team will help you find the best business bank account in the US for you. We’ll also make direct introductions to bankers for account opening. Click here to learn more.]
Opening the Best Business Bank Account in the UK
For small businesses, another great jurisdiction for opening business bank accounts is the UK.
As a leading global financial center, the UK is economically stable and has many secure and reputable banks. Best of all, the banks here are more accepting of international clients. Including, small foreign businesses.
But, that doesn’t mean that you can just go to any bank and open an account
To open the best business bank account in the UK, you first need to understand the bank-specific account opening quirks. Including the specific requirements, you need to meet.
This is especially true as unlike the US, most UK banks require proof of a UK address, phone number, and local ties to the country.
But, that’s not all.
The account opening process in the UK can be paperwork-heavy. For instance, small foreign business applicants must provide financial statements, a certificate of incorporation, proof of location the company was registered, and much more.
And, one missed step or misplaced document can ruin your chances of opening an account.
That said, if you want to start opening a business bank account in the UK today, make sure that you have all the information you need to do it correctly…
Our premium members-only report “UK Banking for Non-Resident UK LLPs & LTDs” covers all of the account opening challenges in the UK, including how to open a UK bank account without a UK address or phone number.
The report also outlines specific banks that cater to foreign businesses and how you can start opening the best business bank account today.
Of course, there are other banking jurisdictions worth considering. So, if you want to know where else you can open the best business bank account for your small business, keep reading…
Ready to Open the Best Business Bank Account?
Whether you’re ready to open the best business bank account for your small business today or you’re just starting to explore your options, we can help.
GlobalBanks IQ gives you everything you need to start finding and opening accounts.
When you join GlobalBanks IQ, you immediately unlock the entire GlobalBanks Database of international banks. It’s home to 250+ banks in 50+ countries.
And, you get access to our library of premium (members-only) reports. These include proven account opening strategies, country-specific banking options, and lists of banks for specific client types.
Plus, you unlock our account opening checklists, dedicated account opening alerts, and much more.
To get started, click here to see if GlobalBanks IQ is the right choice for you.