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Today, one in three Americans owns a small business, underscoring these businesses’ vital role in the US economy. For these Limited Liability Company owners, it is crucial to have a financial partner that understands their needs and can provide tools to help their businesses thrive and grow. With multiple banks in the marketplace, selecting the best one can be daunting for many small businesses.
In this article, Webinarcare Editorial Team will explore the Best Banks For Small Businesses, carefully reviewing their features, pros, and cons and highlighting each bank’s unique attributes. Let’s jump in and look for a bank!
On this page, you’ll learn about the following:
What is a Business Bank?
A business or commercial bank is a financial institution primarily providing services tailored to businesses rather than individual consumers. These services encompass a broad range of financial solutions, including business loans, lines of credit, commercial mortgages, and treasury and cash management services, all designed to support businesses in managing their financial operations, growth, and profitability.
In addition to these services, business banks offer numerous features specifically for businesses, such as business checking and savings accounts, merchant services, payroll services, and equipment leasing. Furthermore, many business banks have teams dedicated to particular industries, thus providing expertise and tailored advice based on industry-specific needs and trends. Whether a company is a sole proprietorship or a large corporation, business banks are crucial in helping businesses manage their financial needs and achieve their financial goals.
Starting an LLC is a significant stride towards structuring a flourishing enterprise, but without a dedicated business bank, your financial foundation remains incomplete. A business bank is not just a monetary storehouse but a strategic partner fueling your venture’s progressive journey!
– WEBINARCARE EDITORIAL TEAM
Why Do You Need a Business Bank?
Establishing a bank account is crucial for businesses, regardless of size and type. Firstly, it helps maintain financial order by separating personal and business transactions. This segregation simplifies record keeping and eases the tax preparation process.
Secondly, having a business bank account adds credibility to your business. Customers and clients usually feel more comfortable paying a business than an individual, which can be crucial in building trust with your stakeholders.
Furthermore, a business bank account becomes necessary when you decide to incorporate your business as an LLC or an LLP to protect personal assets. It clearly defines the financial separation between the owner and the business. This is important because it ensures the business’s legal structure remains intact; failure to do so can expose personal assets to business liabilities.
In addition, business banking accounts often come with added benefits tailored for businesses. These may include business lines of credit, merchant services, payroll systems, and larger cash deposits, among other services, which may not be available with a personal bank account. This way, the business can efficiently manage cash flow and has access to growth resources when needed.
Lastly, a business bank account allows businesses to build a banking relationship, which can prove useful when seeking financial advice or further business financing. Banks with a good understanding of the business’s revenue model and cash flow can provide significant support during a loan application, thus increasing the likelihood of approval.
Here’s a quick rundown of why you need a business bank or easy visual reference:
| Why Do You Need a Business Bank? |
|---|
| 1. Maintain Financial Order |
| 2. Adds Credibility |
| 3. Incorporate Your Business |
| 4. Additional Benefits Tailored For Businesses |
| 5. Build a Banking Relationship |
If you are decided if you want to plan an LLC as a small business, we reviewed the Best LLC Services that offer other features that will help you successfully open a business bank for your company.
List of Best Banks for Small Businesses
Small business banking is a complex and challenging landscape to navigate. However, with the right bank as your financial partner, you can overcome many hurdles on the road to success. We considered this list of business banks for you to check out.
- Wells Fargo: Known for its extensive branch network and a broad array of services, making it an excellent choice for small businesses that prefer in-person service.
- Bank of America: Offers an impressive selection of business banking solutions and displays a strong commitment to customer service, making it an attractive choice for various types of small businesses.
- Chase Bank: Praised for its diverse business banking products and robust digital banking platform, Chase stands out as a strong contender for small businesses.
- U.S Bank: Provides comprehensive banking solutions encompassing checking accounts, business savings accounts, and a variety of lending products suitable for businesses of all sizes.
- PNC Bank: Recognized for its business solutions that cater to different stages of business growth and a special commitment to supporting businesses owned by women, minorities, and veterans.
Best Bank For Small Business – Breakdown
The best banks for small businesses can vary depending on location, specific financial needs, and preferences. If you are starting a business, having a business bank is beneficial. Here is a list of some top banks for small businesses indicating the pros and cons and key features (in no particular order):
1. Wells Fargo
Wells Fargo is one of the largest banks in the United States and offers various financial services tailored to small businesses. They provide business checking and savings accounts, business credit cards, lines of credit, small business loans, and merchant services.
With its dedicated focus on serving the needs of entrepreneurs, Wells Fargo offers a comprehensive suite of products and services that cater to the unique requirements of small business owners. The bank also takes pride in its commitment to personalized customer service, offering dedicated small business specialists who can provide guidance and tailored solutions. Additionally, Wells Fargo emphasizes technological innovation, providing user-friendly digital banking platforms and resources, making it easier for small business owners to manage their finances on the go.
Here are some key features of Wells Fargo:
| Key Features |
|---|
| 1. Wide Range of Services |
| 2. Extensive Branch Network |
| 3. Small Business Loans |
| 4. Online and Mobile Banking |
| 5. Comprehensive Payroll and Merchant Services |
| 6. Education and Support |
| 7. Customized Solutions |
| 8. Personalized Relationship Management |
| 9. Multiple Layers of Security |
| 10. Provides Financial Advisory Services |
Pros 👍
- Wells Fargo is one of the largest banks in the United States, with a vast network of branches and ATMs.
- They offer a variety of financial products and services, including savings accounts, checking accounts, credit cards, loans, and investment options.
- Their online banking platform is user-friendly and accessible.
- They have a strong reputation for customer service, with multiple channels available for customer support.
- Wells Fargo offers financial education and resources, such as financial planning tools and webinars.
Cons 👎
- Wells Fargo has faced several scandals recently, including their unauthorized account scandal, which damaged its reputation and eroded customer trust.
- Their products and services can be more expensive than those other banks offer.
- Their attention to cybersecurity has been questioned, as they have experienced several data breaches.
- There have been reports of Wells Fargo employees engaging in unethical behavior to meet sales targets, raising concerns about their corporate culture.
- Their lack of transparency in their fee structure can lead to customer confusion and frustration.
2. Bank of America
Bank of America offers various financial services specifically designed for small businesses. These services include small business checking and savings accounts, business credit cards, lines of credit, small business loans, payroll services, and merchant services.
With its comprehensive suite of products, Bank of America provides the necessary tools and resources to help small businesses thrive. The bank also prioritizes digital innovation, offering user-friendly online and mobile banking platforms and access to valuable resources and educational content. Bank of America’s commitment to supporting small businesses extends beyond banking services, as it also provides guidance, networking opportunities, and educational programs to empower entrepreneurs and foster their growth.
Here are some key features of Bank of America:
| Key Features |
|---|
| 1. Comprehensive Business Services |
| 2. Digital Banking |
| 3. Extensive Branch and ATM Network |
| 4. Cash Management Tools |
| 5. Small Business Loans |
| 6. Relationship Managers |
| 7. Investment Services |
| 8. Security & Fraud Prevention |
| 9. Business Advantage Relationship Rewards Program |
| 10. Professional Support and Advice |
Pros 👍
- Bank of America has the largest branch and ATM network in the United States.
- They offer various financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
- Their mobile banking app is highly rated and easy to use, with features like mobile check deposit and bill pay.
- Bank of America offers excellent educational resources for financial planning and investing.
- They strongly focus on corporate social responsibility and are committed to sustainability and philanthropy.
Cons 👎
- Bank of America has a reputation for high fees, including maintenance fees for their accounts and ATM fees.
- Their customer service is inconsistent, with some customers reporting poor experiences with representatives.
- Bank of America has experienced data breaches and security issues in the past.
- They have faced criticism for their practices in mortgage lending, particularly during the 2008 financial crisis.
- There have been reports of questionable sales tactics by Bank of America employees similar to those of Wells Fargo.
3. Chase Bank
Chase Bank offers a comprehensive suite of small business banking services, including business checking and savings accounts, credit cards, lines of credit, small business loans, and payment processing solutions.
With a comprehensive range of banking services tailored to meet the specific needs of small business owners, Chase Bank offers solutions that empower entrepreneurs and support their growth and success.
Additionally, Chase Bank offers valuable resources and expertise through their dedicated small business advisors, online educational content, and networking opportunities, all aimed at helping small businesses thrive in a competitive marketplace.
Here are some key features of Chase Bank:
| Key Features |
|---|
| 1. Full-Service Bank |
| 2. Nationwide Presence |
| 3. Small Business Loans |
| 4. Digital Banking |
| 5. Merchant Services |
| 6. Payment Solutions |
| 7. High-End Security |
| 8. Payroll Services |
| 9. Customized Financial Solutions |
| 10. Relationship Management |
Pros 👍
- Chase Bank is one of the largest and most well-established banks in the United States.
- They offer various financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
- Their online and mobile banking platform is highly rated and user-friendly, with advanced features like mobile check deposit and balance notifications.
- Chase Bank strongly focuses on innovation, investing heavily in technology and digital transformation.
- They have a reputation for excellent customer service, with multiple channels available for support.
Cons 👎
- Chase Bank has faced regulatory fines and lawsuits for mismanagement and illegal practices, particularly in mortgage lending and consumer protection.
- They have a reputation for high fees, including maintenance fees for their accounts and overdraft fees.
- Chase Bank has experienced data breaches and security issues.
- They are not focused on smaller businesses or individuals, which can make them less accessible to certain segments of the population.
- Chase Bank has a wide range of financial products and services, which can be overwhelming and confusing for some customers.
4. U.S. Bank
U.S. Bank provides various financial services for small businesses, including business checking and savings accounts, credit cards, lines of credit, small business loans, cash management services, and payment processing solutions.
With its extensive network and comprehensive suite of financial products and services, U.S. Bank offers tailored solutions to help small businesses thrive and grow. With a strong commitment to customer service and a deep understanding of the challenges faced by small businesses, U.S. Bank stands out as a trusted partner for entrepreneurs seeking financial success.
Here are some key features of U.S. Bank:
| Key Features |
|---|
| 1. Comprehensive Array of Services |
| 2. Nationwide Network |
| 3. Small Business Lending |
| 4. Digital Banking |
| 5. Cash Management |
| 6. Business Credit Cards |
| 7. Merchant Services |
| 8. Financial Planning & Investment Services |
| 9. Flexibility (Customized Business Service Packages) |
| 10. Financial Education |
Pros 👍
- US Bank is one of the largest banks in the United States, with a significant branch and ATM network.
- They offer a variety of financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
- Their online and mobile banking platforms are well-designed and user-friendly, with features like mobile check deposit and budgeting tools.
- US Bank offers excellent customer service, with multiple channels available for support.
- They strongly focus on corporate social responsibility, committed to sustainability and community development.
Cons 👎
- US Bank has a reputation for high fees and charges, including maintenance fees for their accounts and ATM fees.
- Their products and services may not be as accessible or affordable for low-income or underserved populations.
- US Bank has experienced data breaches and security issues, which can raise concerns about customer privacy and protection.
- They may not have a broad range of financial products and services like other large banks.
- Some customers report difficulty resolving issues or disputes with US Bank.
5. PNC Bank
PNC Bank offers tailored financial services for small businesses, including business checking and savings accounts, credit cards, lines of credit, term loans, and cash management services.
PNC Bank is one of the largest and oldest financial institutions in the United States, serving millions of customers nationwide. With a history of over 160 years, it is known for its commitment to customer satisfaction and innovative technology. PNC Bank provides convenient and secure banking solutions tailored to meet the diverse needs of its customers. Additionally, the bank is recognized for its strong community involvement and support for various philanthropic initiatives, making it a trusted and respected institution in the banking industry.
Here are some key features of PNC Bank:
| Key Features |
|---|
| 1. Comprehensive Services |
| 2. Specialized Solutions |
| 3. Small Business Lending |
| 4. Cash Flow Solutions |
| 5. Digital Banking |
| 6. Wealth Management Services |
| 7. Robust Set of Merchant Services |
| 8. Innovative Technology |
| 9. Relationship Management |
| 10. Diverse Resources |
Pros 👍
- PNC Bank has a significant branch and ATM network, particularly in the Mid-Atlantic and Northeast regions.
- They offer a variety of financial products and services, including checking and savings accounts, credit cards, loans, and investment options.
- PNC Bank’s online and mobile banking platforms are highly rated and user-friendly, with features like mobile check deposit and account alerts.
- They offer excellent customer service, with multiple channels available for support.
- PNC Bank strongly focuses on community development and philanthropy, demonstrating a commitment to social responsibility.
Cons 👎
- PNC Bank has a reputation for high fees and charges, including maintenance fees for their accounts and ATM fees.
- Their rates on savings accounts and other deposits may not be as competitive as some other banks.
- PNC Bank has experienced data breaches and security issues in the past.
- They may not have as broad a range of financial products and services as some of their larger competitors.
- Some customers report difficulty resolving issues or disputes with PNC Bank, particularly around fees and charges.
Through thorough research and market study, Webinarcare Editorial Team selects these banks for small businesses. You must cross-check all the factors before choosing the right one for your business.
FAQs
The criteria for choosing the best bank for small businesses usually include fees and charges, account features, loan options, customer service, digital banking capabilities, and the bank’s reputation.
Some top banks for small businesses in the United States include Bank of America, Wells Fargo, Chase, U.S. Bank, and PNC Bank.
The best business checking account can vary depending on the specific needs of your business. Bank of America, Chase, and Wells Fargo are known for their comprehensive business checking account options.
Most major banks offer business loans for small businesses, including Bank of America, Chase, Wells Fargo, and U.S. Bank.
Online banks can be a good option for small businesses, especially those looking for lower fees, excellent digital banking tools, and convenient access to funds.
Mobile banking has become increasingly important for small businesses, allowing owners to manage their finances on the go, deposit checks remotely, and access account information easily.
Several banks offer merchant services for small businesses, including Chase, Bank of America, and Wells Fargo. It is recommended to compare the features, fees, and customer reviews before choosing the best option.
Most major banks offer small business credit cards, but comparing interest rates, rewards programs, and fees is crucial to find the best fit for your business.
Yes, some banks specialize in serving specific industries or niches. For example, Live Oak Bank provides financial services to businesses in niche markets such as healthcare, veterinary, and craft brewing.
Not all business banks charge monthly fees for their accounts, but many do. It is advisable to compare the fee structures and features of different banks before deciding.
Yes, you can open a business bank account for a sole proprietorship. Many banks offer specific business account options for sole proprietors.
Banks such as Chase, Bank of America, and Wells Fargo are known for their strong customer service and dedicated small business support teams.
Some banks offer fee-free business banking for eligible small businesses. For example, Azlo and Novo are online-focused banks that offer free business banking services.
Yes, most banks allow small business owners to start the loan application process online. However, additional documentation and verification may be required later in the process.
The best business savings account can depend on interest rates, fees, and account features. Banks like Chase, Bank of America, and Wells Fargo offer competitive business savings accounts.
Yes, most banks provide mobile banking apps that allow access to business accounts on smartphones and tablets, making it convenient to manage finances on the go.
Some banks offer remote deposit options, allowing small business owners to deposit cash using the banking app’s specialized ATMs or mobile deposit features.
Some banks offer specialized resources and educational materials for small businesses, such as training programs, workshops, and online content.
Yes, switching your business bank account from one bank to another is possible. However, reviewing the fees, features, and potential hassles is recommended before making the switch.
Conclusion
While these banks rank highly in the small business banking landscape, small business owners must consider their specific needs, preferences, and long-term growth plans when selecting their financial institution. Factors such as branch and ATM accessibility, digital and mobile banking capabilities, credit and financing opportunities, service fees, customer service quality, and wealth of resources and tools should all be considered. A bank that best understands and caters to a business’s unique needs will be the most effective financial partner, helping it unlock its full potential.