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Business banking describes the various financial products and services available to businesses. It can include everything from checking and savings accounts to loans and lines of credit.
Businesses of all sizes can benefit from having a bank account, as it can help them manage their finances more effectively and access the funds they need to operate and grow. Especially for small businesses, understanding how working with a bank for your business works, can be a useful tool.
As we go over the essentials, it’s important to note that banking products, services and their features vary from bank to bank. Be sure to speak with your local business banker to learn the details of what works best for your business needs.
Whether you have a cake baking business, work as a freelance photographer, or you have a side hustle selling the latest fashion - a business account is an essential part of keeping your finances in order and providing you with the opportunity to take your dream to the next level.
Business banking solutions provide businesses with access to checking and savings accounts, debit cards, credit, merchant services and a variety of commercial loans. These products and services can help small businesses manage their finances, make purchases and grow their operations. Business banking has come a long way in offering features and technology to provide robust support that can help small business owners reach their financial goals.
A business checking account is just like any other checking account. It allows you to withdraw and deposit money through an ATM or in person at your bank. You can also use your checking account to pay bills electronically.
Opening a checking account for your small business is essential to keeping track of your income and expenses. It also allows you to keep your personal funds separate so your records are clear. If you want to apply for a loan, you’ll have to communicate with a banker on your business’s financial standing. Having this information on hand will also be extremely helpful during tax time.
Most checking accounts come with monthly fees, so be sure to compare options before opening an account. Most banks now offer online banking to assist you in keeping up with your business finances.
A business savings account allows you to save money for your business and earn interest on your deposits. Savings accounts typically provide modest interest rates to your business’s benefit.
With a savings account, your withdrawals may be limited or your business may receive penalties for excessive withdrawals. Be sure to ask your banking professional about the terms and conditions of your business savings account beforehand.
Interest will accrue on your deposited funds, which means your business' money will grow over time so you’ll have money to support growth or changes for your business in the years to come.
A business loan is a financial product that allows you to borrow money from a lender and then repay the loan over time with interest. This can be useful for a number of reasons including necessary equipment like a tractor, oven or real estate like expanding your online business into a storefront. Some banks even offer loans for agricultural needs like aircraft loans to support farms with crop dusters and top dressers.
When you apply for a loan, you may need to provide collateral, which is something of value that can be used to secure the loan. Business loans may be backed by a federal government agency like the Small Business Administration (SBA) or provided directly from the lender.
Remember, it’s extremely important that you'll need to make regular loan payments, which the terms of your loan agreement will determine.
Business banking services can be a game changer in equipping your business with what it needs to be successful. A few services that utilize a business checking account, savings account, or loan are:
Today's consumers expect multiple payment options. With business banking, you can set up easy and fast payment options through merchant services for your customers, whether they're paying online, in person, or by phone.
Business banking services can help you save for the future. Whether you're looking to save for retirement or build up a rainy day fund, there are various savings products available to your business.
As a business owner, you know how important it is to track and manage your cash flow. A separate business account allows you to take an honest look at your business with financial modeling that won't blur into your personal finances.
When you open a business account, you'll have access to a team of bankers who can help you manage your finances and apply for loans.
Yes, anyone can open a business account. You just have to ensure you’ve established your business entity with the government. You can open an account for sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
To open an account you’ll need personal identification and verification that you’ve registered your business with the State of Oklahoma, this registration can be completed online. You’ll also need to provide a business tax identification number (EIN). If you don't have an EIN, you can apply for one with the Internal Revenue Service.
Now that you understand the basics of business banking, it's time to get out there and start making money! Business finances can be confusing at first, but your business will be thriving in no time with a bit of practice.
At Triad Bank, we pride ourselves on providing personalized service to small business owners in Oklahoma. We strive to consistently provide the people of Tulsa and the surrounding area with the best in service, commitment and innovation. If you're wondering what our business banking solutions can do for your business, we'd love to talk with you!
Contact us today at Triad Bank of Tulsa to learn more.