Your guide: Best Banks for Startups
Are you thinking of starting your own new business venture? What an amazing time to get things going. Whether you want to be your own boss, have made a business out of a hobby, or just simply found a need in the market, there’s nothing like being an entrepreneur.
One of the things you’ll quickly learn is that there is so much to learn. From figuring out bookkeeping to understanding how to lay out the process, there’s never a boring day at the office. Especially when you’re branching off for the first time.
Have you ever given any thought to how you’re actually going to house the money coming in? Well, if you’ve ever wondered, “What are the Best Banks for Start-ups?” you’re in for a treat.
Today, we are going to answer just that and more. So get ready to dive in and keep reading to learn more.
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Best Banks for Startups: An Overview
First, let’s touch base on some of the general things you need to keep an eye out for. For starters, your goal as a business owner is to protect your business at all costs. This means always looking for the best and most cost-effective options as it pertains to your operation.
This is especially true when it comes to figuring out the best banks for a startup. As a startup, you need to remember that the needs of your current business are going to be different than those of someone who has been in business for 10+ years.
The bank you opt for needs to be flexible and agile enough to meet the needs of a young business. Examples of this would be offering low fees or having a good amount of online tools at your disposal. If you choose the wrong bank, your cash flow might be impacted, or your business’s overall financial health could be jeopardized.
This guide today will review some of the basic things that you need to look for in finding the best bank for our startup.
Business checking accounts
Second, you want to choose a bank that can allow you to have a business checking account. Better yet, you should try to find something that does not require a minimum balance. Since you’re a new business, there may be days that you operate in the negative to fulfill an order or update your equipment.
If a bank dings you for running in the negative daily, that could impact your bottom line. You might start to incur fees or any other sort of penalty. So, choosing a business checking account with no minimum balance is crucial.
Look for merchant services.
Next, you want to look for a bank that might offer some basic merchant services. This would mean that they provide some sort of way for you to collect payments. Yes, there are services like Square or things of that nature, but they do charge a higher fee.
For example, let’s say you collect a $1,000 payment but you get charged 10% in fees versus just 2% via the merchant services your bank provides. It would make way more sense to just use your bank’s services for cost savings.
Business credit cards
Now, the next step would be to find a bank that offers either a low-rate credit card or a card that comes packed with rewards and benefits. Let’s say you have cash coming in from Consistency Montlyh. It would make sense to have a business credit card that you pay off each month. This way, you can grab some epic rewards or even cash back on all the business expenses you pay for. After all, it takes money to make money, right?
Interest Rates
Finally, you want to explore a bank that offers low interest rates. Interest rates are what can help make or break a business, especially during a slow time for a business. Let’s say that you have issues with cash flow and you start to depend on your lines of business credit to keep the company standing.
Let’s say you had to charge $10,000 to your credit card just to keep things operating. Now, if you landed an interest rate of 20%, that’s pretty high. Your $10,000 debt has now increased to $12,000. Now, think about how long this will take you to pay back. The game is to find a low interest rate in times of need.
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The Best Banks for Startups
Now, for the moment, you’ve all been waiting. What is the best bank for a start-up? Well, traditionally, it was said that Silicon Valley Bank was the top choice for many innovative start-ups. They offered everything from solid business checking accounts to incredible merchant services. However, they tanked so they’re no longer a solid option.
Based on our findings, it looks like the three banks that are great for startups are going to be: Bank of America, Wells Fargo, and Capital One. They all have their own pros and cons when it comes to finding the best ones for your needs. It does look as though Capital One offers better interest rates and more comprehensive options for start-ups.
Conclusion
In conclusion, when it comes to looking for the best banks for startups, you have a few options to choose from. Whether it’s Wells Fargo, Capital One, or Bank of America, you have quite a few options. It does look, however, that Capitol One will be the best option by offering you the most comprehensive options available.
So, it’s time to get your thinking cap on and search around for the best options you have available. Happy shopping!