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Business banking is a crucial piece to understand if you want to run a business successfully. Learn these expert banking tips!
If you’re one of the hundreds of thousands of small businesses that open each year, you know that setting up a strong financial framework is essential for your success. In fact, cash flow problems are one of the most common reasons that small businesses fail.
Don’t let poor business banking practices tank your small business. Instead, use these 4 expert tips for banking that will help you become (or remain) successful.
1. Always Separate Personal and Business Bank Accounts
This might be the most important rule of small business banking: never use your personal account for business expenses. While you might want to use the same bank to make things easier, you must have different accounts for your business and your own funds.
Most accounts for business are different than personal accounts, have different fees and features, and are compliant with any legal requirements for business accounts. Not to mention, keeping things separate makes it easier come tax time.
If your business and personal accounts are mixed, you run the risk of tax issues and even legal issues. Save yourself the risk and just open separate accounts.
2. Find a Bank That Offers Financing
While you might not need financing for any large purchases or expenses now, that may change in the future. Choose a bank that offers options for small business loans or lines of credit in case you do need to utilize them in the future. You might also want to choose a bank that specializes in financing for small businesses or has resources specifically for small businesses.
A local bank or credit union may be a good option for this.
3. Choose a Bank That Helps You
You want a bank that is going to help make your life easier. Online banking, check deposits, and online bill payment (with the ability to schedule recurring payments) is hugely beneficial to a small business.
Other tools, such as expense tracking, debit cards, credit cards, and even financial guidance are all services that many banks offer to businesses. Because business accounts are typically not free, you want to see what you’re getting with the fees that your bank is charging you. Don’t settle for little or nothing; instead, find a bank that’s going to give you something other than simply a place to keep your money.
4. Find Low Fee Banking
This leads to our next point: pay attention to banking fees. Most of the major banks are going to charge you a monthly fee for a business account. In addition, they will also charge for things like:
- Debit or credit card replacements
- NSF (non-sufficient funds)
- Fees when your balance drops below the minimum
Hatch provides business checking with no NSF fees, up to 5% cashback rewards*, perks, and discounts – all for $10 a month¹ with no minimum deposit!
Business Banking Reimagined
A clear plan and some legwork ahead of time will give you a solid business banking strategy to help ensure your success. Look for a bank with low fees, financing options, and a desire to help out small business owners.
If you’re struggling to find that, Hatch may be the lender for you. Hatch is a lender that specializes in small businesses and provides low fee business checking accounts. You can get started here. Get ready for a seamless online banking experience that actually rewards you with cashback rewards and perks!