While a business checking account is designed to meet the financial needs of a business instead of an individual, small businesses are accommodated further with the availability of small business checking accounts. These accounts do not offer as many options and features as regular business checking accounts but are more affordable to small businesses that don’t require the extra bells and whistles.
Sometimes, it is even possible for these small businesses to obtain a free business checking account. However, because the needs of a small business often differ from a larger one, small business checking accounts are only useful in certain cases. The following are two main aspects to consider when determining whether a small business checking account will match the characteristics of your business:
If your business is just getting off the ground or very small in size, you may not maintain a very large, steady balance in your account.
While most business checking accounts require a minimum balance, an account that is specifically designed for small businesses usually waives this requirement. If you are unable to meet minimum balance requirements and would most likely be hit with fees for this reason, a small business checking account is probably for you.
Number of Transactions
Small business checking accounts allow companies to avoid paying transaction limit fees because they rarely ever exceed those limits. Does your business process many transactions per day or deposit large sums of money? If so, a small business checking account may not properly handle your needs.