If you are planning to start a small business, opening a business bank account is a crucial part of the process. Having a dedicated business bank account for your small business can help you manage your business finances in an easier way. However, walking all the way to the bank branch to set up your business bank account can be hectic, especially when coupled up with the hassle of establishing your business. To avoid wasting time in the banking hall, you can just set up the business bank account online. The best part is that you do that right from your home or office. Opening a business bank account online will help you save not only your time but money as well. Although this sounds great, it is worth noting that some people might find opening an online business bank account a challenging task. To help you out, here is a post that explains how could open a business bank account online.
Steps to follow when Opening a Business Bank Account Online
Step one: Decide on the Type of Business Bank Account You Want to Open
Before opening your online business bank account, take a moment to figure out the type of business bank account that you need for your business. You can pick between a business saving account and a business checking account.
Why Choose an Online Business Checking Account?
- It is great and accessible for your firm’s working capital
- Allows easy access of money via checks, electronic payments and debit cards
- Ideal if your business is mainly controlling working funds
Why Pick an Online Business Saving Account?
- If you intend to store money because your business has enough working capital to facilitate day-to-day operations
- If you intend to minimise access to your money and allow it to earn interest over time
The objectives you want to achieve by opening a business bank account online have to adhere to the reasons we have outlined above. If you still find it difficult to settle for an account, it is advisable to consult a business accountant for advice on how to distinguish the two online business bank accounts.
Step Two: Get Your Options for Business Bank Accounts to Open Online
After knowing the type of business bank account to open, it is now time to get a bank that offers you what you need. First and foremost, get a bank that offers the option to open an online business bank account and then see whether you can open your ideal business bank account. Although opening an online business bank account requires a smaller fee as compared to opening an account in traditional banks, be sure to compare different providers based on their transaction fee, ATM fee, wire transfer fee, monthly fee as well as cash deposit fee.
Step Three: Get the Required Online Business Bank Account Documents
When opening an online business bank account for your business, you will need to provide the bank with the documents that outline the nature of your business. To open your online business bank account, you will need to submit the following:
- Proof of identity, Passport, ID or Driving license
- Proof of address
- Business name and registered address
- Proof of nature of your business
- Business plan
- Employee identification number verification documents
Step Four: Apply for an Online Business Bank Account
To apply for an online business bank account, you simply need to visit the bank’s website and follow the steps required. The banks often require one to send the needed bank account documentations based on the bank’s structure and opening account requirements.
The bank management will then review your documents for one or two business days and give you their feedback.
Advantages of Opening an Online Business Bank Account with Neobanks
- The online business bank account allows you to separate your business and personal finances.
- The business bank account online offers more affordable fees as compared to traditional banks.
- It allows you to manage your finances online from the comfort of your office or home unlike traditional banking, which requires you to visit the bank branch in person.
Setting up a business bank account online is critical for business owners that want to draw a line between their business and personal finances. Moreover, it enables them to manage flow of finances in their businesses conveniently.
If you are planning to open a business account online, be sure to follow the steps that we have reviewed above and your process will be hassle-free.