If you are considering starting a small business, or already running one, a bank account should be one of the requirements at the top of your checklist. It’s not just an option—it’s a basic requirement. Ideally, every business, small or big, should have at least a dedicated checking account for three reasons; to build a financial record for the enterprise, for accounting purposes and to keep cash safe.
Considering that every business has a unique cashflow system, a bank that serves your friend’s business well may not necessarily be a good pick for you too. When it comes to choosing a bank for a small business, there has to be some leg work involved. It is important to take some time to research and find a financial partner that not only offers you the best deal but also gives you access to all the products you need to run your small business conveniently.
Since you already have a business to run, we at Brief figured out that evaluating banks probably isn’t how you want to while away some hours; we did the research for you and reviewed the 6 best banks for small businesses in 2019.
So, How Did We Pick the 6 Best Banks for Small Businesses in 2019?
The needs of small businesses vary from one to another. Therefore there’s no such thing as the best bank for small businesses—it depends on the dynamics around your business.
The only common need across all small businesses is low fees, so you seriously need to be keen on the monthly fees, cash deposit fees, and cash withdrawal fees.
There are many approaches you could consider to determine the most suitable bank for your business. To establish the overall best banks, we focused on the following essential merchant banking services:
- Best small business checking and savings accounts offers
- Best small business lending options
- In-person customer service
- Small business credit cards; we looked at the interest rates, annual fees, and perks
- Mobile check deposits
- ATM fees
- The option to keep all accounts at the same bank
With that said, here are the six Best Banks for Small Businesses.
1. Chase Bank: best choice for small business credit cards
Chase bank serves close to half of American households. That is the best overall bank in the US. But it’s not just Chase’s massive presence that earns it a spot on this list, but its small business banking services.
Chase Bank offers a wide range of loan options for small businesses. These include SBA loans, asset financing, lines of credit, and term loans. If you are a qualified borrower, Chase Bank Small Business Loans can fetch your enterprise a significant amount in capital of up to $500,000. While the bank is starting to diversify its lending products, it is widely known for traditional bank business loans.
For your small business checking needs, Chase offers three options depending on the stages in your business’ lifetime; Performance Business Checking, Total Business Checking, and Platinum Business Checking.
Besides stellar service and excellent small business lending services, Chase Bank also has the best business credit cards, and the best online and mobile banking systems in the market.
In a nutshell, Chase ranks high as the best pick for small businesses because it presents SMEs with almost everything they might need, they are available in all locations and offer competitive service fees.
2. Axos Bank: best online and mobile banking system for small businesses
Axos Bank, the oldest online-only bank in the US, is an internet-based bank that offers a wide range of reliable solutions for both consumers and small businesses. In the comfort of your home, all you need to access your small business’ checking or savings accounts is devise that can run then Axos Bank application and internet connection.
The application is a suite that presents you with a myriad of reliable solutions to start and grow your small business.
Their Business Interest Checking is free of charge for average daily balances above $5,000, a figure that’s considerably manageable. Below that, your account will be charged a mere $10 in monthly fee. This is not to mention up to fifty free items per month, a money market, cash management products, and 0.8% interest rate among other incredible online and mobile banking services.
3. Wells Fargo: the largest number of branches across the United States
Wells Fargo is a globally renowned bank with a reputable Small Business lending service. With over $2 trillion in assets, it is the third-largest bank in the United States–if bank deposits are to go by. However, that’s not what makes it an ideal bank for Small Businesses; it’s the fact that they are specifically focused on small businesses.
There are four different Wells Fargo Checking Accounts to choose from for your business. These business checking accounts vary depending on the size and banking needs of your small business. They include; Analyzed Business Checking, Platinum Business Checking, Simple Business Checking, and Business Choice Checking.
If you are looking to apply for a loan in future, Wells Fargo would be the bank for you. Unlike most banks which only offer the conventional term loans and lines of credit, they provide additional offers for short-term loans and asset finance. This makes their lending service very flexible for small businesses. Depending on the type of loan your small business needs, you can secure it at a reasonable starting interest rate of 6.75%, fast and easy.
4. M&T Bank: has the best Business Analyst Services
With a whopping 690 branches spread across the East Coast States; the M&T bank could be just what your small business needs if it has a branch in your State. What’s most outstanding about this bank is that it builds helpful relationships with its customers, and that’s something for small businesses.
When you open an account with M&T Bank, a relationship manager will be assigned to your business who will thoroughly review your cash flows and offer you the best banking service based on the unique needs of your business.
The bank offers five business checking account options, as well as specific accounts—in case the nature of your business calls for a specific account. For example, if your business needs a professional services account, M&T Bank has a provision for that.
Besides, M&T is one of the leading SBA lenders.
The biggest disadvantage of M&T is that you have to ensure a rather large balance in your account to dodge the monthly fees.
5. Bank of America (BoA): best low-cost checking accounts
Bank of America is one of the oldest banks in the US. Over its lifetime, BoA has supported over three million small businesses—thanks to its solid financing solutions. In recent years, the bank has developed easy-to-use products, including an online suite and mobile banking systems.
With a rich history and a proven track record, BoA is a reliable option for small businesses that need financing and low-cost checking accounts. In 2015 alone, the Bank of America lent $10.7 billion to small businesses, that is, to say the least, speaks volumes about the bank’s lending capacity to small businesses.
Their lending products, as the case with other traditional banks financing, take the forms of secured term loans, equipment finance, real estate financing, lines of credit, and SBA loans.
On business checking accounts, Bank of America offers only two accounts—two solid business checking accounts; the Business Advantage account and the Business Fundamentals account. Of all the banks reviewed on this list, BoA has the lowest fees on cash deposits.
Though only veterans, duty military personnel, their immediate family members, and a select few employees of government agencies qualify to be members of this amazing credit union, the NFCU is an awesome banker with many products for small businesses.
Unlike conventional banks, credit unions are non-profits, which means they generally charge relatively low fees on their services and offer members high-interest rates on their savings.
To open an account with the Navy Federal Credit Union, you must qualify to be a member; you have to join the union as an individual so that your business can enjoy the high-quality banking products they offer for members’ small businesses. Upon opening an account, you are required to deposit at least $100 before you can start enjoying their banking services.
Their products include; business checking accounts, savings accounts, employee insurance, asset financing, credit loans, and retirement savings, to mention a few.
Though technically not a bank, don’t overlook an opportunity to open an account with the Navy Federal—it’s an opportunity to enjoy lower fees and higher interests than any bank would offer you.
The small business owner has many banking options to choose from in 2019. These numerous choices make it challenging to choose the best banker for your small business. The good news is that we have narrowed down the choices to just six options where you can bank, conveniently at affordable costs. If your company already has a banker which you are uncomfortable with, fortunately, you can change your choice at will. Try one of the 6 best banks on this list, and you will be glad you did.
Did we missed something? Comment below and share your thoughts!