Business Banking

Does your business need to manage cash effectively? These resources cover everything from opening a business banking account to complex business banking transactions.

Frequently Asked Questions

  • What should you look for in a bank for your small business?

    When determining which bank works best for your business, there are several factors to consider, including checking and savings account services, interest rates for deposit accounts, introductory and service fees, branch and ATM banking accessibility, transaction limits, minimum balance, and signup offers.

  • How do you open a business bank account?

    Start by choosing where you want to bank. Some business owners choose to open a business account at the same bank they use for their personal bank accounts. When you open a business bank account, you will need to provide certified documentation to verify your business. If you’re a sole proprietor, for instance, a business license and a registration of your trade name might be required.

  • How do you establish business credit?

    If you are just starting your business, then the business is essentially an extension of yourself. Your business and personal credit report will initially be linked. By establishing business credit, you separate your personal credit from your business credit. It takes time and effort, but begin by separating your business finances from your personal finances. Set up a business bank account, and keep your books separate.

  • How does remote deposit work?

    Organizations see a large volume of checks, and they need to get funds available quickly for operations, payroll, and expansion. Remote deposit is a way to process payments without sending paper checks to your bank or credit union. By scanning an image (or taking a photo) of checks instead of moving physical documents around, you get faster deposits and fewer errors.

Key Terms

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Page Sources

  1. U.S. Small Business Administration. "Open a Business Bank Account."

  2. U.S. Small Business Administration. "How to Establish Business Credit for the First Time."

  3. State of Connecticut Department of Banking. "ABC's of Banking."

  4. Bureau of the Fiscal Service. "Automated Clearing House."

  5. Board of Governors of the Federal Reserve System. "Microfinance in the United States."

  6. International Trade Administration. "Methods of Payment: Letter of Credit."

  7. Cornell University Legal Information Institute. "48 CFR § 52.228-14 - Irrevocable Letter of Credit."

  8. U.S. Small Business Administration. "Asset-Based Lending: What is the Upside and Downside?"