10 Important Things to Know When Opening a Business Account

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Your Business need a veritable bank account. A good business is indispensable without a business account. Does your business have a viable bank account? Don’t open any yet without reading through these 10 prerequisites. Here is a guest post by Gilbert Bermudez a professional freelance writer.

If you’re currently planning to put up a business, you may not have a solid idea of how much you’ll need to get started. Aside from the many factors to consider as well as permits to get, opening a business account is also a big concern.

Here are ten important things you’ll have to know before you open a business account:

1. Choose the Right Bank

Ask businessmen or entrepreneurs you know and trust to get a solid idea on the kind of reputation the bank holds, what their credit history is, their standing in the market. If you don’t know anyone, you can screen the bank yourself. Also consider access. It should be convenient for you to get to the bank for times when you really need to.

2. Know the Bank’s Services

Different banks offer different services: like investments, commercial, central, online banking along with savings & loans. Most banks offer basic savings and checking accounts, with various services that offer saving, lending, and investing. Choose the bank that offers a combination of all services you think your business will need. Also, know about the possible fees for different transactions and see if these are reasonable. It wouldn’t hurt too to ask if the bank has interest-bearing checking accounts.

Balancing The Account

3. Submit All Requirements ASAP

After choosing a bank, the next step is to furnish the bank with a copy of all requirements needed. Submit all necessary personal and business documents as soon as you can to get your application processed that much faster. Check your information carefully to avoid discrepancies in your financial information.

4. Set the Appointment Accordingly

Set the date of the appointment right away. Make sure all partners, principals, and other business officers will be in attendance. Remember that you’re not the only account holder being accommodated by the bank that day. You and your business partners must have a pre-meeting or at least gather all your questions and concerns before coming to the appointment. It is best to raise all important concerns while everybody is there.

5. Look for Other Options

Since it’s your first time to open a business, you should consider many account options. You may consider getting a customized account recommendation, depending on the nature of your business. You may also ask a financial consultant who knows about business accounts for advice.

6. Get an Account Depending on the Business Structure

Know the right account for your business structure. Whether it is for sole proprietorship, corporation or partnership, you and your partners must agree on the type of business account you will apply for.

Also, signatories for contracts and important documents have to be determined so decide on that with the rest of your management team.

7. Know What Your Business Needs

If you’re the only owner, then this isn’t as crucial. However, if the business is built on a partnership or team or corporation, there should be accounts dedicated to manpower matters like ATM’s for payrolls, departmental budgets and others. So determine in advance the kinds of accounts you and your team will most likely need.

8. Business Checking Perks

There are banks that offer free business checking. This usually requires no minimum balance, no monthly service charges, and offers free web banking and online bill payment services. Sometimes, banks offer perks when you open a business account. The account holder is able to sign up for partner merchant services and get a portion off their processing fees. Also, try to find out which banks offer additional discounts on closing costs for various business loans—you never know when you’ll need their services.

9. Pay Attention to Miscellaneous Fees

Make sure you check the standard miscellaneous banking fees and compare those with figures from other banks. You and your business partners must know and understand the implications and possible consequences if you all decide to use an overdraft protection plan or if there are insufficient funds. If you’re the sole business owner, check if there’s a foreign draft or collection fee for international transactions. This will help you identify charges you could possibly incur once you stop paying.

10. Align Everything

If you’re starting up a business under a partnership structure, everyone must know the nature of the business, must contribute their own share of expertise but at the same time, align their ideas and goals with everybody else’s. It’s important for banks that partners are in sync when it comes to their decisions, so that in the absence of one or two partners, anyone in the business can take over.

Starting up a new business could be very challenging for many. Knowing which steps to take should help you and your business partners take to the whole process quicker and with more ease.

About author:

Gilbert Bermudez writes for CompareHero, Malaysia’s leading bank card, broadband, insurance comparison website. Loves fishing, swimming and a hobbyist. You can follow his activity on his Google+ and Twitter.

 

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