Starting a small business presents many challenges, including finding the best bank for your new company. Although you might be content with the bank you use for personal banking, don’t assume it will also serve as the best business bank for your professional needs. Choosing the right bank now could help you grow your business.
Finding the Best Business Bank for You
Banks offer a host of small business banking services to help small business owners get started and grow with their business. Before choosing a bank for your small business, meet with banking officers at several banks to get detailed explanations of how the services offered — such as easy business loans, easy payroll services and business support — might best fit your business needs. To help you decide which bank could be best for you, here are the five best banks for small business bank accounts.
Bank of America
Line of credit: From $10,000
Loan offerings: Secured business loans starting at $25,000
Fees: $150 fee for lines of credit up to $100,000; $150 renewal fee for lines of credit up to $100,000; origination fee of 0.5 percent of amount financed for loans; $16 monthly service fee for Business Fundamentals Checking; $3,000 minimum daily balance or $5,000 average monthly balance required to waive fee
Bank of America, which is a preferred SBA lender, has a customer base that includes nearly 3 million small business owners who receive top-line industry support. It offers a variety of services such as mobile, text and internet banking, online payroll and invoicing, and credit card processing and cash-management services. Business bank account products offered include business checking, savings and certificate of deposit accounts and business debit, credit and ATM cards.
In addition to secured and unsecured loans and lines of credit, BofA offers other types of loans for your business. Options include healthcare practice loans, equipment loans, commercial real estate loans and auto loans. For small business owners who are unsure what type of financing they need, BofA offers an online recommendation tool to help pinpoint the best financial product.
For customer service needs, BofA offers five dedicated lines for its various services: general, online banking, online payroll, remote deposit and merchant services.
Line of Credit: From $10,000 to $500,000; annual fees of $150 to $500
Loan Offerings: Business loans from $5,000; equipment loans and leasing finance from $10,000; real estate financing from $50,000
Fees: $12 monthly service fee for Total Business Checking account with paperless statements; $1,500 minimum daily balance or $5,000 in monthly cash deposits to waive fee
JPMorgan Chase, also known as Chase, prides itself on being an industry leader in merchant services and offers its small business banking customers the ability to accept mobile, in-store, online or phone payments. Chase also provides 24/7 year-round customer service and user-friendly reporting tools that allow you access to your merchant account online whenever you want. Other services include foreign exchange and ADP payroll processing, human resources administration and tax compliance assistance.
In addition to loan products, Chase also has a variety of small business credit card offers as well as debit cards. Business checking, savings and CD accounts round out the product list.
Chase service representatives are available to assist you 24/7 with existing accounts via regular and TDD/TTY calls. An online automated business service line is also available every day, which allows you to check your account balance, transfer money or make payments.
Line of Credit: Up to $250,000, $500,000 or $2 million
Loan Offerings: Up to $5 million for SBA loans; up to $11.25 million for real estate financing; up to $500,000 for equipment loans
Fees: $50 fee for each fixed-rate option loan or credit line; $0 fee for Silver Business Package checking account
In addition to loans for small businesses, U.S. Bank offers services that can help you effectively run your small business: payroll service, direct payroll deposit, payroll card, workplace banking and employee insurance. Online and mobile deposit are available along with a selection of credit cards featuring cash, travel and retail rewards as well as other benefits.
U.S. Bank’s secure Viewpost network allows you to create and send digital invoicing, track invoices, sync data to your accounting software and send and receive secure electronic payments. Additionally, U.S. Bank assists with managing international payments and transactions made electronically, by credit card or wire transfer. You can access customer service in person or by phone.
Line of Credit: Up to $100,000
Loan Offerings: Acquire business loans up to $5 million
Fees: $0 loan fees up to $150,000; 3 percent of guaranteed portion of loan up to $750,000; 3.5 percent for $750,001 to $5 million; $150 per line of credit; $150 annually, beginning in the second year; $14 business checking account monthly fee; $7,500 minimum average ledger balance to waive fee
Whether you need full-service payroll and tax solutions or you only need to be able to pay employees via direct deposit, Wells Fargo offers both options. You can also automate your employee timekeeping system, stay informed on small business HR laws, and reward employees with benefits such as discounted banking services. Wells Fargo also offers your business a full host of retirement plan options such as IRA, 401K and profit sharing.
Three business credit cards — with varying credit lines of up to $300,000 — are available to assist with everyday business expenses, each with rewards points or cash back programs offered. Additionally, Wells Fargo offers a full suite of payment processing options such as mobile and EMV chip card payments with next business day funding available.
You can reach customer service representatives by email or in person during regular banking hours. Phone support is also offered 24/7.
Line of Credit: Up to $100,000; 0% APR for 12 months
Loan Offerings: Up to $1 million, three or five-year terms; up to $1 million real estate financing; up to $1 million equipment financing
Fees: $0 fee for lines of credit when payments are deducted from TD Business checking account; $25 monthly maintenance fee for TD Business Convenience Checking Plus; $1,500 combined balance in TD Business Convenience Checking Plus and one personal checking account to waive fee
TD Bank prides itself on being America’s most convenient bank, due in part to being open for longer hours — including weekends and most holidays — than other major banks.
In addition to loans, lines of credit and business checking, savings and CD accounts, TD Banks offers a host of other products and services for its small business banking customers, such as the TD Business Solutions credit card that offers unlimited cash back for all purchases. Other offerings include business payroll and HR services for one to over 100 employees, merchant solutions, small business workshops and an online business resource center.
TD Bank also offers a wide range of customer service options. Visit a branch in person during its convenient, longer banking hours or reach live customer service 24/7. Other options include email, a self-service phone line or posting a question on TD Helps.