How to choose a business checking account that grows with your startup

The best business checking solutions are those that can grow with you. Financial scalability for businesses is often overlooked when entrepreneurs search for a checking account, so it’s important to find an account with all the features you need to succeed in the long-term. Here’s what to look for when choosing a business checking account.

Why do I need a business checking account?

Opening a business checking account is one of the first steps you take when running a business. This account helps you separate your business expenses from personal ones, and it can help you access business loans, credit cards, or merchant services through the same provider.

What to look for in a business checking account

Today, opening a startup business checking account is simple and easy—you can do it online without leaving your home or office. However, don’t let that convenience stop you from taking time to assess your business needs first. 

Compare national and community banks as well as digital banking platforms. Some key features to look for a business checking account include:

• Low fees and minimum balance requirements, high transaction limits
• High-yield interest
• An online dashboard and mobile app
• Accounts payable tools
• Overdraft protection
• Team features like accountant tools or sub-accounts

Third-party integrations

Something else to consider is how compatible your business checking account is with other platforms. Digital banking platforms typically offer application programming interfaces (APIs) to connect your business checking account to cash flow management tools and accounting platforms like QuickBooks Online. This will help you automate your finances across platforms, especially as you scale your business.

Additional business banking services

A bank that offers merchant services can help you improve your revenue by allowing you to send and accept card payments faster and for lower fees than a payment processor alone. This is especially useful for small businesses with a high volume of transactions or high average amounts.

Access to funding options like business loans and lines of credit is also beneficial, as improving your cash flow can help support growth and operational efficiency. You’re more likely to get approved for loans if you already have history with the issuer, so check with your banking provider for financing options before you open a business checking account. 

Check to see if your business checking account provider also offers business credit cards. These will help you build business credit and earn cash back or rewards, increasing cash flow. The ability to issue additional credit cards to employees can also streamline payments and make your account more secure.

Bank stability and reputation

The institution that hosts your business checking account should have a good reputation among small business owners. If you’re processing payments through a merchant account, your customers will feel more comfortable if they recognize the payment terminal or gateway they’re paying you with. Choose a bank with FDIC insurance, so your deposits are insured for up to $250,000—or more—in case of bank failure. 

Scalability and flexibility

Scalability is not the same as growth—many companies grow without having the ability to scale their operations. When choosing a business checking account, look for a banking platform with a diverse range of integrated products that you can use to scale smoothly. Check to see if they offer certificates of deposit (CDs), business loans, lines of credit, investment accounts, accountant tools, merchant accounts, sub-accounts, and more that will become important as you grow.

Customer service and support

An often-ignored differentiator between business checking account providers is the quality of their customer service. Find a provider with a human support staff ready to answer the phone or respond to you via live chat. Seek out reviews from customers who had to resolve an issue—how long does it take to get a response when you leave a message or send an email? Does the customer support team answer questions knowledgeably?