Business Bank Account is a specialized financial account that a company uses to manage its finances, including receiving payments, making purchases, and keeping its business transactions separate from personal finances.
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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.
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.
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.
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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.
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.
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:
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 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.
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Disclaimer: The content on this page is for information 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.
ZenBusiness is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC.
Written by Team ZenBusiness
ZenBusiness has helped people start, run, and grow over 800,000 dream companies. The editorial team at ZenBusiness has over 20 years of collective small business publishing experience and is composed of business formation experts who are dedicated to empowering and educating entrepreneurs about owning a company.
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