5 Easy Steps to Switch Your Business Checking Account

The day-to-day demands of being a small business owner can be all-consuming, making it tough to prioritize less immediate needs like choosing the best bank for your business. However, if finding a better business checking account can improve your day-to-day for the long haul, it may be worth it to switch.

 

Choosing the right bank is a business opportunity

When it comes to switching business checking accounts, consider approaching it as a business opportunity. With a little research, you’re likely to identify an account that may offer more attractive terms and incentives than your existing account. Switching business checking accounts isn’t as hard as you may think, it could be worthwhile to take advantage of the benefits it can bring to your business.

 

How to make the switch

Wondering how to switch your business checking accounts? Here are five easy steps:

  1. Find a business checking account that fits your needs.

Looking for an account with easy mobile accessibility, or the ability to make cash deposits? Researching the account features that are most beneficial to you and your business can help you make the right decision.

  1. Create a log of all your bill payments.

To simplify your transition, you’ll want to make sure none of your payments falls through the cracks. Consider making a list of every recurring bill payment that’s covered through your existing business checking account, so you can set up the same payments when your new account is opened. You’ll be glad you did this, as it will ensure your bills continue to be paid on time and your accounts with your vendors and suppliers remain current.

  1. Apply for your new business checking account.*

Some business checking accounts, like Kabbage Checking™**, allow you to apply in a few minutes. Be prepared to enter information such as your name, contact info, and a few basic details about your business.

**Kabbage Checking account opening is subject to identity verification and approval by Green Dot Bank

**The Kabbage Checking Account is provided by Green Dot Bank

  1. Clear your old account of funds and terminate all ongoing transactions.

It’s helpful to give yourself ample time to notify your current bank of your account termination. ACH transfers typically take a few days to clear, so you’ll want to allow time for this. Be mindful of important payment dates while you’re moving funds so that any due or pending invoices are completed in your old business checking account before you officially move to your new one.

  1. Move your funds, update your bill payments, and start using your new account.

Once your funds have been moved to your new account, you should take note of your new account number and update your ongoing bill payments so that they are pulled from the correct account. Some accounts, like Kabbage Checking, can house all your vendor info in its secure platform, so that you don’t have to manage multiple logins to pay your bills.

 

FAQs

  • Will my bank charge fees for closing my business checking account?

This can vary from bank to bank. Contact a representative from your bank for more details about the account termination process.

  • What’s the difference between ACH push vs. pull vs. wire transfer?

It can be helpful to differentiate between these processes as you’re switching business checking accounts. First of all, ACH transactions take place within a separate electronic clearing network, whereas wire transfers are facilitated by banks. An ACH push takes place when an account holder sends—or pushes—money from one account to another. An ACH pull is the opposite: when an account holder requests funds be sent from one account to another. Kabbage Checking can handle them all.

  • What are the other benefits of Kabbage Checking?

Kabbage Checking account holders can use the Kabbage platform as a full-fledged digital banking solution. With 19,000 free in-network ATMs and 90,000 participating retailers, you can deposit cash conveniently where you shop.1 Also, with Reserves, you can create sub-balances to save for certain business goals—like payroll, taxes, and more.2

 

Kabbage offers online business checking accounts designed for small businesses. Learn how Kabbage Checking™ can support your business.

  1. Retailer fees and limits apply. See the Fee Table in the FAQs
  2. Money in Reserves must be moved to the available balance in your primary account before it can be used.  We may require at least seven days’ written notice of an intended transfer from a Reserve to your primary account. If a Reserve is closed during a Statement Cycle, interest accrued during such Statement Cycle is forfeited. For more information on Reserves, please see FAQs.

The material made available for you on this website, Kabbage.com, owned by American Express National Bank, is for informational purposes only and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.

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