The downfall of most entrepreneurs is not being informed on how to properly manage their money. One of the first steps in creating a legitimate business is to create a business bank account. Here are four factors to keep in mind when choosing where your business will bank!
1. What is the bank's minimum balance?
When your first starting your business, you will most likely need time to balance your books and get a feel for how much money it takes to run and grow your brand. Being fully aware of the bank's minimum balance AND the penalties associated with it are important to maintaining your business.
2. What are the bank's penalties and fees?
As a small business owner, you will learn that everything is not in your control, and your industry can be unpredictable. Schedule a time to talk to an associate at your potential bank to discuss their fee schedule and rates for things such as bounced checks
3. Where is the bank located?
Whether you have an online business or a brick-and-mortar store, it is important to choose a bank that's location works for you. If you are making frequent deposits, choose a bank that is close to minimize hassle and risk.
4. How much cash can I with deposit/withdraw monthly?
Depending on the type of business you have, you may need to deposit a ton of cash. Banking institutions often limit how much you can deposit a month, so be sure that as your business grows, this bank will grow with you!