What is Business Banking? Services Offered in Business Banking: Business Banking is a service offered by most banks to their customers. It is designed especially for business industries, firms and corporations. Whether you have a small business firm or a large corporate, you have to use business banking service with a bank. You need to open a business savings or checking account to use the services that the bank offers.
As an owner of business, you need fund to start your business, to run your business and also to grow your business. In addition to funds, you need to make payments to merchants and receive payments from wholesaler or retailers. You can get all these services under business banking from any bank of USA.
What is Business Banking?
Business Banking includes the financial dealings that happen between a bank and a business organization.
Banks are expected to pay financial services to individual customers and business groups. Financial Service given to individuals is called retail banking and service given to firms/corporations is called business banking. Some banks offer services in capital market which is known as investment banking.
Types of Business Accounts
A business can be divided into various categories based on business type, product type and other things. But business banking is related to financial products and services offered by a bank to business industries and corporations. The banks open business account for various business categories mentioned below:
- Sole Proprietorship
- Partnership Firm
- Limited Liability Company
- Business Corporation
- Government Agency
- Not-for-profit Organization
Whether you own a small business or partnership firm, you can open a business account with bank. The banks provide financial products and services in business account as per type/category of business.
Am I Eligible for Business Banking?
Every person or group who owns a small/large business industry is eligible to get business banking services. You should contact your nearby bank to get to know everything about eligibility and procedure to obtain business banking service for your business.
Services Offered by Banks under Business Banking
You will get various services under business banking which will help your business grow faster. The business banking services include business loans and various credit options. Moreover, the bank offers high interest earnings on term deposits for business industries only. The interest earned on deposits will help you meet your operative expense. You will also get overdraft service and credit card(s) to spend bank money and return them within prescribed time limit.
01. Business Checking Account
Business Checking Account is a non-interest bearing account. It is ideal for the business industries who have to do lots of transactions every month. You can do unlimited deposits and credits to your business checking account, the bank does not charge anything on deposits/credits. You need to pay $7.50 monthly service fee. This fee can be avoided by keeping $3000 as average collected balance in checking account.
02. Small Business Checking Account
If you own a small business with limited transactions per month, you should open a small business checking account. In this account, you can open checking account with $50 or a minimum opening deposit as set by the bank. You need to pay monthly service fee of $5 which can be avoided easily by keeping $500 as minimum balance in your small business checking account.
03. Business Savings Account
It is a traditional type of savings account that gives impressive interest earning. You don’t need to pay any monthly fee. The Business Savings Account does not require any minimum balance.
04. Certificates of Deposit
In order to earn higher interest, you can save your business money in certificates of deposit. The bank offers a CD with minimum $1000 for a tenure of 3 months to 60 months. Interest on CDs is much higher than savings, checking and other types of bank accounts. The bank provides guaranteed return on certificates of deposit which is really appreciable.
05. Loans and Line of Credit
You can get loan and line of credit for running your business. Most entrepreneurs take business loans to grow their business. The bank provides business/commercial loans for start up and expansion of business capital. Here we provide some important things for what you can get a loan or line of credit.
- Purchasing land or a building
- Construction of a building
- Purchasing machinery or equipment
- Operating Capital Loans usually made on a short-term basis to fund seasonal cash requirements
- Lines Of Credit are used for seasonal needs and have a revolving feature.
06. Business Credit Cards
Business Credit Cards come with various offers. Along with credit card, you will get expense management tools. The bank will provide free credit cards for your employees. You will be able to manage your credit card from your mobile cellphone. The bank also provided credit card merchant services which include credit card processing, debit card processing, point of sale terminals and EBT.
08. Remote Deposit Capture
This feature is very important for all business organizations. You can deposit money to your business account right from your office. In order to make e-Deposit, you need to use your computer, scan checks, verify deposit total and submit it online. The money will be deposited to your bank account as quick as possible by the bank.
How to Avail Business Banking Service from a Bank
You have to visit the bank branch to open a business account. The bank will ask for some documents which you have to provide. If you are willing to get a business loan, the bank executive will explain the procedure. As you submit documents and follow the procedure, you will soon be able to open a business account.
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