What to Look for in a Business Banking Partner

Having a business banking account creates a gateway to broader financial capabilities so you can get your business off the ground, launch new products and services, and do more with your money.

Learn what business banking involves—as well as what to look for in a business banking partner—so you can have a trusted financial partner for years to come.

What is business banking?

Business banking refers to a suite of services offered by most banks that caters to businesses and corporations rather than individuals. Many banks offer business banking in addition to retail banking, which focuses exclusively on consumers.

The most fundamental level of business banking is a business checking account. This type of account is useful because it can help you track income and expenses all in one place.

Business banking can also include the following services, which work together to help you manage your company's finances:

• Business savings accounts
• Cash management solutions
• Loans and leasing options
• Business insurance

Finding the right business banker

Each business has its own unique needs, so the best bank for each business will vary. However, a great place to start your search is with the same bank you use for personal accounts. You may be able to take advantage of lower fees or fewer minimum-balance requirements if you have an existing relationship with your bank.

If your bank doesn't offer this service or you'd like to explore additional options, shop locally for a business bank. It's also a good idea to ask fellow business owners where they bank and what they like about these institutions.

When comparing your options, consider the following:

• The bank's track record and how long it's been open
• The services it offers compared to the services you need now and in the near future
• Its experience working with businesses in your industry and the value its products offer
• Whether a business banker will be assigned to your account as a point of contact to answer questions throughout the relationship
• The fees and requirements necessary to start or maintain a business banking account, including early termination and ATM fees
• Introductory offers, which may include reduced fees or bonus cash for initial deposits

It also pays to stop by a branch and have an in-person meeting with a business banker. These meetings can help reveal capabilities that the bank's website might not cover and other strategies they can offer that are more specific to your line of work.

The benefits of business banking

By using a business checking account, you're opening the door to a more robust financial relationship. Not only will you take the step toward separating your personal and business finances, but you'll also start a relationship with a bank that can help you achieve different goals as your company grows. Whether you need a loan for opening a second location or a credit card to help finance expenses, your banking partner can provide a one-stop-shop for your business's monetary needs.

While the US Small Business Administration details some perks of having a business bank account solely for business purposes—from protection and professionalism to preparedness and purchasing power—here are some additional benefits of opening a business banking account.

Accepting credit cards

Business banking can help you get set up to accept payment by credit card and automated clearing house, or ACH, payments—making it much easier for your business to get paid by customers.

Lowering fraud risk

Banks offer various features designed to help protect your business from fraudulent check, debit and credit card transactions.

Consolidating cash management tools

You can often find custom dashboards and features to better see and manage your cash, including accounts payable, accounts receivable and automatic check reconciliation.

Hiring employees

Your bank can set up payroll to keep you compliant with regulations and pay employees for their hard work.

Simplifying tax payments

Having a business banking account can help simplify the process of paying quarterly business taxes, and it can make it easier to estimate upcoming tax payments.

The bottom line

No matter which bank you choose, you should always feel like you're gaining a strategic partner—not just opening an account. Running and growing a business is challenging enough. Starting with the right business bank can help you feel confident that your finances are in good hands, offering a reliable point of contact that can help you explore your options and fund your goals at every stage.