As a small business owner, online banking is non-negotiable. Your business needs convenient digital tools that let you manage your finances from anywhere, along with software integrations that connect your bank account to all your accounting tools. But, with so many options to choose from, it can be difficult to find the best online banking solution for your business.
Understanding your business banking needs
The first thing you want to look at when searching for online commercial banking solutions is how your business moves money. For example, retail businesses that make daily cash deposits may have difficulties using an online-only bank account. However, businesses that use online invoicing, accept credit cards, and don’t receive payments in cash might be a better fit.
If your current solution isn’t working for you, don’t hesitate to switch your business checking account. Opening an online business bank account could be the first step in modernizing how you run your company. Converting to strictly digital transactions streamlines your operations and makes it easier to track expenses—this includes using online bill payments to fulfill your obligations to vendors and suppliers.
Benefits of online banking for small businesses
Simply put, online banking is convenient because you can access your business checking account from anywhere you can get an internet connection. This means it’s easy to manage your finances on the go, which is perfect for busy business owners.
Online banking is also very secure, although you should be sure to use a private network or VPN when you access your account. Unlike public Wi-Fi, private networks can help prevent identity thieves and hackers from accessing your business’s financial data.
See how Bluevine puts your account security first.
Another benefit of online business checking accounts is that fees are typically lower because fintechs don’t have brick-and-mortar overhead. They can operate with a smaller infrastructure, offering more competitive interest rates and fewer or lower fees. The bureaucracy and red tape of traditional banks and credit unions are not usually a point of frustration with online-only banking solutions.
Lastly, online-only bank accounts offer advanced digital tools and integrations with your payroll services, accounting software, and expense management platforms. That connectivity allows your business to connect and automate most of your financial processes—saving you time and money.
Key features to consider in an online bank account
Important features you’ll see with the top digital bank accounts for SMBs are a debit card with the option to issue additional cards to your team, and access to a business line of credit or business credit card. Having all three gives you the liquidity you need to increase your cash flow, and the access to capital for expansion or new product launches.
Other features you might want in an online business checking account are:
- The opportunity to earn high-yield interest
- No monthly fees, transaction limits, or minimum balance requirements
- Free standard ACH transfers
- All the payment options you need, like check, credit card, and domestic or international wire
- Sub-accounts to help you budget more effectively for expenses, payroll, taxes, and more
- Easy integration with business and accounting software
- Advanced security and fraud protection
- Accessible customer support
- Cash deposit and withdrawal options (if your business handles cash regularly)
Some online bank accounts also offer merchant services and investment opportunities, if you’re looking for an “all-in-one” banking package.
Evaluating online banking solutions: What to consider
Getting all the features you want is great, but you’ll want to also ask some hard questions when shopping for business-focused online financial institutions. The size and stability of the online bank or fintech are important. You can look up that information on the BankFind Page, sponsored by the Federal Deposit Insurance Corporation (FDIC).
The FDIC can tell you who regulates the bank—it’s usually the Office of the Comptroller of the Currency. You can also check the OCC website to make sure the company is registered. Customer reviews are also valuable when trying to find a new banking home. The Better Business Bureau (BBB) is the best source for those, but there are several other online review sites you can check.
Planning for growth
The right online banking solution should be able to scale with your business. For your company, this could mean higher FDIC coverage, multiple business checking plans with higher interest rates, or access to working capital—like a business loan or line of credit—when you need it.
Finding the right solution for your business could also mean having the ability to expand into another state without needing to open a new bank account. Online-only institutions typically don’t have geographical boundaries within the U.S.
Conclusion
Online banking solutions offer the digital tools you need to manage your cash flow more efficiently. The right business checking account can also give you the freedom to spend less time on day-to-day money management and more time running and growing your business.
With fewer fees, higher interest rates, better technology, and more software integrations than traditional banks, online-only business banking solutions are a great fit for many small businesses. The most important thing to consider when selecting an online bank account is the needs of your business. So, take your time to do research and compare your options before opening an account—finding the right one could set your business up for short- and long-term financial success.
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