Can You Really Open a Small Business Checking Account Online?

Technology is changing the way we live—everything from ordering food to watching online movies and even banking online. The days of rushing to the bank before it closes have become much easier today with online banking options. With automatic payments and bill pay, online deposits and e-statements available, the need to walk into a brick-and-mortar bank is decreasing. 

The big question is whether you can open your account online. And the big answer is you can.

The benefits of a small business checking account 

As a small business owner, you have enough to think about running your business. When you have a business bank account, it sets the professional tone for your business. A business checking account is one area that you can rest easy knowing that you are keeping your personal and business finances separate. This is extremely important when it comes to taxes. 

A business checking account also helps you plan your budget for your business, manage payroll, deposit and receive payments, and prepare for future funding options. 

However, many businesses are finding that most of the checking account services they utilize do not necessarily require an in-person visit to their bank branch. Most of their transactions are done through the online banking service. 

Technology has paved the way to utilize online banks. 

Should you open an online business checking account?

Most of us are familiar with online banking, where you can access and manage your online checking or savings account via computer or mobile device. Online banking offers a variety of services from transferring funds and initiating deposits to using electronic bill pay. Because of the convenience of online banking, many people rarely visit the physical branch. 

When you are looking for a banking option, there are many things you should take into consideration. 

  • Monthly fees with a minimum balance 
  • Interest rates for checking and savings accounts
  • Interest rates for business lines of credit
  • Transaction fees
  • Early termination fees 
  • Introductory offers 

While traditional banks with branches offer customers access to internet or online banking, online banks are provide online- and  mobile-first access. While you will not have physical face-to-face access to your banker, there are many perks to opening an online small business checking account. 

Pros of online small business checking accounts 

    1. Accessibility: An online-first presence means better accessibility to your account, anytime, anywhere. You are not locked into traditional banking hours. 
  • Better online experience: With online banking, the bank is really serious about giving you a good customer experience, and you don’t have to worry about waiting online behind slow people.
  1. High security: Online banks use modern security measures to keep their customers’ information safe. Make sure to opt for security features such as encryption and fraud monitoring. 
  2. Backed by FDIC: A legitimate online checking account will be insured by the Federal Deposit Insurance Corp. 
  3. Fewer overhead costs: Online banks often pass on their savings to their customers. From lower fees to better interest rates, the upside to opening an online business checking account is plenty. 

Comparative standard bank services with cash management capabilities 

Kabbage offers many resources to small business owners. From online checking accounts, funding options, and a way to take payments – Kabbage is your full online banking solution. 

Learn more about Kabbage Checking and our other small business offerings, please visit

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