Choosing the best bank online banking service for your business will depend on the needs of your company.
A recent statistic shows the share of the population using digital banking in the United States from 2018 to 2022, by generation. In 2018, almost 75 percent of Millennials in the U.S. used digital banking, which is set to rise to 77.6 percent by 2022.
Online banking had risen to prominence even before the current pandemic, with its superior web services and mobile apps. However, now more than ever, company owners rely on technology to meet their banking needs from the comfort and safety of their own homes. If you’re considering using an online bank for your business, consider the benefits and drawbacks, as well as how these cutting-edge banking tools are transforming how business owners interact with their money.
Businesses use internet banking to replace in-person visits to a branch in today’s fast-paced world. It has a number of web-based capabilities that allow you to conduct financial transactions online, including:
- Payment of bills
- Payments of taxes
- Transfers of funds to merchants and providers
- Contributions to retirement funds
- Loan applications for business loans, credit cards, or lines of credit
Advantages of online banking
According to The Really Useful Information Company (TRUiC), there are other advantages to banking online, in addition to the ability to bank at any time and from any location. It’s also possible that you’ll be able to:
Pay bills online
One of the most significant benefits of online banking is that you don’t have to take time out of your day to go to the bank. You can immediately pay your bill by logging into your account and paying it online. You may also set up automated bill payments for better efficiency, which will help you manage your cash flow when you have monthly payments to and from vendors.
You might need to send money to a client or vendor quickly, or you might need to move money from one account to another. You can securely transfer money online instead of sending a registered cheque and waiting for it to clear.
Deposit cheques online
You may be able to deposit checks online in minutes rather than traveling to a bank branch and waiting in line. You may also bank on the go because most financial institutions provide an app that replicates their services from your phone. Furthermore, some banks provide customer support 24/7 a day, 7 days a week, so you can contact a representative at any time.
Lower your overhead fees
Your banking fees may be reduced if your business banks online because online banks do not have to pay for the cost and upkeep of branches, and those savings may be passed on to you. Plus, they might have more no-fee solutions, which will help you save even more money.
There are four factors to consider when choosing the ideal business bank account for your small business:
- What kind of business do you run?
- Your company’s requirements
- requirements of the bank
- Other advantages
We’ll take a look at three of the biggest national banks for small businesses and what bank accounts for businesses and see what makes them the best option for certain types of businesses:
BlueVine is a financial institution that operates online. They’re a fantastic fit for organizations that don’t perform a lot of cash transactions but will eventually want a business loan. BlueVine began as a small business loan before moving into the business banking sector. They excel at both.
To open a business checking account with BlueVine, go to their website and fill out an online application, as well as send your business formation documents, tax identification number/EIN, and other essential information.
BlueVine Payments is a one-of-a-kind bill-pay service offered by BlueVine. You can pay vendors or anyone with a credit card, and BlueVine will pay them on your behalf by cutting them a check or issuing an ACH payment. This service has a cost of 2.9%.
Chase is the bank to check out if you own a retail or restaurant business that generates frequent substantial cash deposits. They’re an excellent fit for organizations that deal with a lot of cash and have many physical locations. Chase has about 4,700 physical locations across the United States. Chase also offers a variety of competitive account alternatives suited to various business sizes.
You’ll need to fill out an application and provide your business formation documents, tax ID number/Employer Identification Number (EIN), driver’s license or state-issued ID card, and other essential personal and business information to start a business checking account with Chase.
Additional benefits: Chase offers a variety of business checking account options. Additionally, they provide a few business savings accounts. Each account they provide is tailored to assist various types of organizations in a variety of situations.
A business bank account is required for a variety of reasons. One of the most important reasons to open a company bank account is to retain your limited liability protections and avoid piercing the corporate veil. Furthermore, you’ll need a company bank account to establish business credit as well as a mechanism to collect and preserve your revenue.
Choosing the best bank online banking service for your business will depend on the needs of your company. Both BlueVine and Chase are great options and offer a variety of services and advantages.