All You Need to Know about Opening Business Bank Account

How to keep your personal and business finances separate, manage cash flow and track expenses better.

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Introduction

There are several factors to consider when opening a business bank account. The most crucial factor is the type of business you have. A sole proprietorship or partnership will want to look for a different account than a corporation. Other factors include whether you need check-writing privileges, online banking, and merchant services. You’ll also want to compare fees and minimum balance requirements.Choosing the best banks for a business account in Europe can be difficult, as banks offer a wide range of services that can be tailored to the specific needs of businesses. To make the best choice, it is essential to understand what services are available and how they can benefit businesses. This article provides an overview of the main types of business bank accounts in Europe and discusses the key factors businesses should consider when choosing a bank.
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Which Business Bank Account is Right for Your Business?

Before progressing further, we need to ask, do you need a business bank account? In the United Kingdom, you are not legally required to have a business bank account and can use a personal account for business purposes. However, there are several reasons why you might want to consider opening a dedicated account:
  • It can help you to keep on top of your business finances and budgeting
  • Some businesses require a separate account to comply with regulatory requirements
  • A dedicated account can make it easier for customers and suppliers to identify which company they're dealing with
  • In some cases, it can help you to access financing or other services from the bank 
Many different business bank accounts are available on the market, so it's essential to compare the features and benefits before choosing one that's right for your company. You may even need multiple bank accounts for business!When you’re choosing the correct type of account for you, you need to consider many factors, such as:
  • The amount of money you will be keeping in the account 
  • The types of transactions you’ll be making
  • How often you’ll need to access your funds 
Some additional features and services may benefit your business. If you keep a large amount of money in your account, consider a business savings account to earn interest on your balance. If most of your banking is done electronically, you can save time and money by getting an account that doesn’t charge fees for electronic transactions. You should also consider other services that would benefit your business, such as online banking, mobile deposit, and merchant services. Each bank offers different features and service levels, so it’s essential to compare what’s available before making a decision.When determining the best business bank accounts for your business, you also must look at the size and structure of your business. The best business bank accounts for small businesses will offer low fees, convenient online and mobile banking options, and a vast network of ATMs. Larger businesses will want to consider additional factors such as merchant services, lines of credit, and international banking options. When searching for the best banks for your business, there are many things to consider.
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Which Bank is Right for Your Business?

Now that you've decided on the types of business accounts you need, the next step is choosing a bank. Do you want a local bank, an online platform, a credit union, or a big national bank? Here are some factors to consider when making your decision: 
  • Ease of use. Does the bank have a user-friendly platform that's easy to navigate? 
  • Fees. What are the monthly costs and minimum balance requirements? Are there any hidden fees? 
  • Customer service. How responsive is the customer service team? Do they have extended hours or 24/7 support?
You might consider using an online bank because it’s more convenient for businesses starting out. You can open an account and start using it immediately, and you don’t have to worry about paperwork or going into a branch. For example, with some online banking platforms, there is no minimum balance required to open an account.Whether you go the in-person or online route, the best business bank accounts offer low fees, high-interest rates on checking and savings, and robust online banking features. Some even provide perks like free wire transfers or credit card processing services. Do your homework when choosing the best banks for business accounts by comparing features and fees to find the right institution for your needs. The best business bank accounts have low costs and offer a good return on your deposits. They also help you manage your money and make payments easily.The best new business bank accounts for start-ups will offer low fees, easy access to capital, and features that can help your business grow. Conversely, the best sole trader business bank account should have a low or no monthly account fee, free transactions, and access to business banking products and services. Make sure to do your research to choose the best bank for you. Now let’s take a look at the advantages of online banking.
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Should I Choose Online Banking for My Business?

There are many banking benefits online. Aside from the convenience of banking anywhere and everywhere as long as you have your mobile phone, other advantages include the following:
  • Tracking transfers, spending, and income
  • Better insights into where money is going
  • Alerts when short funds
  • Fast digital onboarding
  • Dedicated IBAN accounts
  • Global SWIFT wire transfers
As you can see, there are many advantages to choosing an online platform. Online banking is often the best business bank account for Amazon sellers because many accounts offer high-yield savings with no minimum balance and monthly fees.This is the best option for entrepreneurs who want to earn interest on their cash reserves without worrying about keeping a minimum balance in their accounts. Of course, nothing is perfect, and there are drawbacks to taking your money digital, including:
  • You may have less control over your money
  • Unfortunately, there is always a possible risk of fraud
  • Some platforms may require you to maintain a certain balance. 
  • There may be fees associated with digital banking, such as for transfers or international transactions.
  • Finding a human customer service representative when you need one can take time and effort.
You can offset these challenges by finding yourself a banking platform that offers a streamlined user experience with superb customer service. Do your research and examine the pros and cons of any platform you’re considering. It should also fit your business type.Start Business Banking with Narvi PaymentsFor innovative companies with global payment needs, Narvi has developed a borderless banking service. Sign up for a dedicated Euro IBAN and start sending and receiving payments from/to 100+ countries.Read more about Narvi's limited company business accounts and sole trader business accounts.
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Open a Bank Account with Narvi

As you can see, there are many things to consider when choosing the best bank account for your business. Whether you’re opening a new business bank account for a startup, searching for a European business bank account, or maybe you’ve even been turned down for a business bank account and are looking for alternatives, Narvi is a great start.Built by a team of finance industry professionals, Narvi can care for all your banking needs in one sleek, efficient platform. Narvi is genuinely building the banking services of the future. Check us out and book a demo call with Narvi today!
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Published December 28, 2022Author:

Neil Ambikar, Co-Founder and CFO of Narvi Payments.
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