How to find the best small business checking account in 2021

If you recently started a new business or are on the verge of starting a new business, your expectations are high. You intend to have the BEST business of its type around. One of the ways to accomplish this is to have the BEST small business checking account around. Why is having a good checking account so important for your business? Having a solid account is the best way to manage your money for future growth. We’ll go into more detail about the benefits below. 

Why is having a small business checking account so important?

As a business owner, you have a million things to worry about: products, pricing, promotions, your lease, a new business introduction and much more. 

You know that having a business checking account adds credibility to your small business. So, you know how important it is to get a business checking account. But adding a bunch of items to your to-do list having to do with your bank account doesn’t make a lot of sense. A bank focused on small businesses understands your situation and is committed to giving you the most hassle-free, simple way to bank that still provides you with all the services you need. 

What Does a Small Business Need in a Business Checking Account?

Let’s look at the specific needs of a small business owner:

  • A free business checking account with low monthly fees would be helpful to you as you manage the money you’d like to invest in your business.
  • An interest rate offer can make a big difference in the long run. It’s much better to earn 1% on your funds than it is to earn 0% on your funds.
  • It would be great to not have to meet a minimum deposit or minimum balance requirement.
  • Quick access to cash is another important benefit, as are low overdraft fees.
  • Simplicity is the name of the game. As a new business owner, you have so much on your plate already. You need information readily available, but it needs to be very easy. The last thing you want to worry about is complexities like needing to fill out a form to get specific information.
  • The bank should offer direct deposits with minimal or no fee.
  • An online bank would be great, because it eliminates your need to have to drive to a branch.
  • A bank that offers business loans or additional funding resources such as partnering with SBA or similar sources would be very helpful.

What Do Most Small Business Checking Accounts Look Like?

While the bank you use for your personal checking account may be willing to accommodate your request for a business account,many business bank accounts aren’t really meant for small businesses. Most banks make the bulk of their money from big businesses, so they orient their business accounts to this audience.

As a small business owner, you really want to look for a bank that is geared towards small businesses – a bank that is committed to providing you with all the information you need in an easy-to-use way. Banks focused on large businesses will provide you with all the information, but your experience might be a bit more cumbersome.

What’s the Difference Between Small Business Checking Accounts and Normal Business Accounts?

A lot of the differences have to do with simplicity and fees. With small business checking accounts, you need simplicity so you don’t have to devote a lot of time to your banking. Low fees are also crucial so you can preserve as much of your money as possible to invest in your business. 

With large business checking accounts, functionality is the bonus. The more features the bank offers you, the better. However, often added features seem great on the surface, but they can add a level of complexity, and they typically have higher fees.

How Does Kabbage Address the Needs of Small Businesses?

At Kabbage, supporting small businesses is why we’re in business. From online checking accounts, funding options and ways to process payments, Kabbage is your full online banking solution. 

Learn more about Kabbage Checking and our other small business offerings, please visit https://www.kabbage.com/checking/

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