Business Bank Account Definition

Learn more about what a business bank account is.

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The business bank account definition is an account that helps an entrepreneur keep business transactions separate from personal ones. These accounts may only be available at certain banks and often come with both perks and conditions.

This article will cover the basics of business bank accounts and business banking. We’ll also help you understand when a business bank account might be right for your small business.

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Understanding Business Bank Accounts

Business banking is also called commercial or corporate banking. Commercial or corporate banking departments help big and small companies with their bank accounts. The meaning of “business bank account” can include everything from business loan accounts, credit accounts, savings accounts, and checking accounts specifically designed for companies rather than for individuals.

Banking Services Offered to Small Businesses

As we mentioned above, the definition of a business bank account is broader than you might imagine. You might think only of your checking or savings account when you think of a bank account. However, with business banking, a business bank account often encompasses a wide variety of products and services.

We can help you get started with a Small Business Bank Account through our partnership with Lending Club. Apply to let us help you open your small business bank account and get all the benefits and none of the hassle of traditional banks.

Cash Management

Cash management services can help businesses better manage cash on hand, liquidity, and receivables/payables. Business banks can help set up a company’s business bank accounts to specifically help with these items. For example, one of the benefits of a business bank account is that business banks can allow for the automatic movement of money from idle checking accounts into interest-bearing savings accounts. That way, no excess cash sits in your business checking account, and your money is always working for your business!

Banks also provide businesses with access to Automated Clearing House services. This is the network used for the electronic processing of payments and money transfers.

Financing

Depending on a company’s needs, business banks can offer various loan products to business bank account holders. Access to capital through bank financing is another of the advantages of having a business bank account. Some banks cater to certain industries like real estate, construction, or agriculture. Be sure to do your homework before selecting a bank.

Benefits of a Business Bank Account

Business bank accounts typically hold more cash and process more transactions than personal accounts. As a result, business bank accounts offer perks that don’t come with a standard personal bank account. Some of these perks include:

Protection from fraud and personal liability
The credibility of having your business’s name on checks, wires, and credit cards
The purchasing power of access to credit

These are just some of the benefits of having a business bank account. The most important one is keeping your personal and professional transactions separate.

Business Bank Account: Summary

Business bank accounts keep personal and business transactions separate. Business banking encompasses a variety of services provided by a bank to a company rather than an individual. And business bank accounts include loan accounts, credit accounts, and checking and savings accounts.

How We Can Help Your Small Business

We can help get your business up and running. Our Corporate and LLC Formation services can help you set up your company. What’s more, our complete suite of business services, from Worry-Free Compliance Service to our ZenBusiness Money App, can help your company stay on track. And once you’re up and running, our Accounting Basics for Your Small Business can help you gain the confidence you need to keep track of your money in your business bank accounts.

Disclaimer: The content on this page is for informational purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.