The Ultimate Guide to Business Banking

Like personal bank accounts, business bank accounts come in different forms depending on your needs. Here are some different types of business bank accounts, and the primary roles they serve:

1. Business deposit accounts: Also called business checking, these accounts are intended for frequent deposits and frequent withdrawals/expenditures.
   
   Small businesses and commercial businesses alike use business deposit accounts for purchasing supplies, paying for expenses, employee payroll services, and more.
2. Business savings accounts: This type of business bank account is intended for storing extra capital. Banks incentivize business savings by paying interest on the amount in the account. You may come across these common types of business savings accounts:
   
   
   • General business savings: This option is similar to the typical personal savings account. It will usually have a low required minimum, a small monthly fee, and a cap on the number of withdrawals allowed each month or year.
     
     
   • Business money market: A money market account gives your bank the option to invest your money and use the profits to pay you a higher interest rate on your savings.
     
     You'll likely be required to invest more up front compared to a general business savings account, but this type of account typically comes with more freedom. For example, a business money market account may have a higher cap on monthly withdrawals compared to a general savings account.
     
     
   • Business Certificates of Deposit: Also called Business CDs, certificates of deposit help your business prepare for long-term goals by storing your money for a predetermined period of time, during which it will earn fixed-rate returns.
     
     While CDs are a reliable way to earn interest, they do come with heavy penalties if, for any reason, you need to withdraw your money before the maturity date.
3. Other services: Like personal banking, business banking involves other services that make your life easier as a business owner. One of the benefits of a business bank account is that you’ll have access to services that will support your business through many stages of growth.
   
   
   • Business lines of credit: This type of credit gives your business access to a fixed amount of money which can be used to meet short-term financial needs. For example, a business might use a line of credit to purchase inventory, and the revenue from the sales of that inventory would in turn be used to repay the borrowed sum.
     
     
   • Accounts receivable financing: Some banks offer an opportunity for financing that is directly tied to a portion of the business’s accounts receivable balance. This capital can be used to cover costs while awaiting payment from clients.
     
     
   • SBA loans: While Small Business Administration loans are backed by the U.S. government, you may be able to secure an SBA loan through your local bank if they are qualified lenders.

Business banking is so much more than just a place to stash your cash. Your bank is your partner, helping you access the tools you need to help your business thrive and grow.

You understand the importance of a bank account, but did you know that the bank you choose is just as integral?

If you’ve begun looking for a bank that fits your business needs, you know that there’s a LOT to choose from. How can you ensure that you pick the right bank, with all the features you need to scale your business?

Here are some key areas to consider:

1. Customer service: Whether you’re a solopreneur or you’re at the helm of a bustling enterprise, you’ll find that there’s no substitute for phenomenal customer service.
   
   If a bank provides excellent customer service, you’ll have no trouble reaching someone for assistance when you need it. Associates will be knowledgeable and helpful, taking the initiative to solve problems and answer questions.
   
   As you search for a business bank, take note of how easy (or difficult) it is to reach a representative. Check out the bank’s website and view their contact options. You should have multiple ways to reach out for assistance if needed.
   
   
2. Accessibility: Mobile banking and easy-to-use technology are not just perks anymore, they’re necessities. Before you choose your business banking partner, ask for a walkthrough of their online banking interface and the various tools they offer.
   
   The bank’s tools should be simple to locate and use. You should be able to complete banking tasks from wherever you are, on any device that you use.
   
   
3. Services and costs: Most banks offer a similar menu of business banking services, such as checking, savings and credit options. Costs, however, vary widely.
   
   While browsing your banking options, take a close look at the fine print. Compare options side-by-side. Note transaction limits, maintenance fees, interest rates, minimum balances, and more.
   
   Sometimes, higher fees are associated with more features. For example, if you’re comparing a business checking account with a monthly fee and a business checking account with NO monthly fee, consider whether there is also a difference in features (such as unlimited transactions or other benefits).
   
   
4. Convenience: Convenience involves all the considerations listed above: great customer service, superb accessibility, useful services, and minimal costs. Together, these features make your business banking either highly convenient, or a huge headache.

A business account gives you more than just a shiny new debit card. What are the advantages of a business bank account? Here are a few of the things a business bank account can do for you:

• Professionalism: You’ll have lots of cash going in and out as you operate your business. If you use a bank account associated with your personal information rather than your business information, you may encounter confusion at best—and suspicion at worst.
  
  Using a separate bank account for business means that transactions will be clearly associated with your company. This eliminates questions and uncertainty from customers who write checks to you, and from vendors who are receiving funds from your business.

• Track your cash flow: The purpose of opening a business bank account goes beyond ease of transactions. It can actually make or break your success.
  
  It’s estimated that up to 82% of businesses that fail do so because of poor cash flow management. If you don’t have a good understanding of how much cash is coming in and going out, you risk not being able to pay bills, buy inventory, pay employees, or secure and maintain lines of credit.
  
  Small businesses in particular benefit from keeping all cash in one spot, specifically so that it’s easier to get a bird’s-eye view of your day-to-day financial status.

• Strengthen your local economy: Every small business owner knows the value in shopping local. But have you considered that this applies to business banking, too?
  
  Choosing a local bank for your business checking, savings, and credit needs keeps your money in your community. When community banks invest in local businesses, and local businesses partner with community banks, the entire local economy benefits.

• Build a relationship: With continued hard work and smart banking, your business will surely expand. And as it does, your banking needs will grow as well. Perhaps you’ll need a loan to finance a major expansion, or a lucrative opportunity to invest your products.
  
  Sticking with your business banking partner, particularly a community bank, allows you to develop a relationship and find new opportunities as you begin to scale. A solid banking relationship is often the launching point for game-changing financial resources such as business loans or lines of credit.

Quality business banking is integral to your success. But should you open a business bank account within your community? What are the advantages of opening a bank account locally?

Here are the different options available from Vast Bank, one of the few remaining family-owned banks in Oklahoma:

Business Checking Account

A business checking account is the hub of your financial operations. After you open a business checking account, you’ll use it to pay bills, pay employees, make moves, and even cover unexpected expenses.

The difference between personal checking and business checking is that a business account is specifically developed with business needs in mind, such as high transaction limits and easy-to-use functionality.

Here are Vast Bank’s three key business checking categories:

• Small Business Checking: Small Business Checking was created with small to medium-sized businesses in mind. This account requires NO monthly maintenance fee. There is no minimum balance requirement (a huge relief for those brand-new ventures!) and just $100 required to open.
  
  
• Business Plus Checking: As your business grows, so do your checking needs. This account has a $10 monthly maintenance fee with up to 300 free transactions each month. Like small business checking, there’s no minimum balance to maintain.
  
  This option is best for companies who complete a hefty amount of monthly transactions.
  
  
• Commercial Checking: Even highly complex organizations will find the tools and features they need with our Commercial Checking option. With Commercial Checking, you’ll enjoy the benefits of a corporate bank account, plus the excellent customer service and community support of a local bank.
  
  This account comes with unlimited transactions and a $10 monthly maintenance fee. With the increased volumes that come along with commercial-level operations, you’ll earn credits on your balance that can offset any charges.

Business Savings and CDs

When you think of savings, do you think about nest eggs and 401ks? Or do you think about business savings, too?

As you manage your business finances, you’ll likely encounter situations in which you incur unexpected costs. You’ll also reach junctures in your operations during which an investment must be made in order to scale and grow.

To prepare for these situations, you’ll need savings. Here are some safe and secure options from Vast Bank to help you save:

• Business Savings: For the just-getting-started saver, this account has low balance requirements that allow you to save at a pace that’s right for you. You’ll earn interest on any amount greater than $0 that you keep in the account, with a low $2 monthly maintenance fee.
  
  This account allows two withdrawals per month, which will help you resist the temptation to spend your savings. It will also allow you the chance to use your funds penalty-free when you really need to.
  
  When linked to your business checking account, your business savings can also provide overdraft protection, giving you peace of mind as you earn and spend.

• Business Money Market: Ready to put your savings to work? A business money market account allows you to earn a premium interest rate on the money you save.
  
  By using your savings to make safe, steady, and lucrative investments, we will help you generate money with your excess funds.
  
  An initial investment of $1000 is required to open a money market account. From there, a monthly maintenance fee of $10 is assessed (typically offset by account earnings). You’ll also enjoy the freedom to make up to six withdrawals per month.

• Certificates of Deposit: You may have used Certificates of Deposit, or CDs, to earn interest on your personal savings. You can do the same with your business savings!
  
  Vast Bank’s business CDs are safe, secure means of saving money. Initial deposit amounts range from $1000-$2500, with interest paid after a predetermined period of time.

Payroll Services

Simple, accurate payroll processing is a critical part of day-to-day operations for businesses with employees. You’ll need a comprehensive system that’s easy to use, yet flexible enough to meet your business needs.

• Vast Payroll Options: From self-service payroll tools to full-service options, Vast Bank has scalable options that will allow you to compensate your employees, retain necessary information for tax purposes, and securely store your employees’ information.

Small Business Financing

Some business costs, especially those tied to growth opportunities, cannot be feasibly covered using savings. Other times, you’ll encounter a short-term expense that exceeds your available cash balance (such as purchasing inventory) that can be quickly repaid later.

For these situations, you’ll use small business financing. Vast Bank has several options to meet your specific needs:

• Lines of Credit: A business line of credit (LOC) is a reusable, fixed amount of money that you can use to meet any of the short-term financial needs that come with running a business.

  The process to apply for a business LOC is simple, and payment options are flexible.

• Term Loans: Term loans are used to finance big purchases like new equipment, vehicles, or operating space. Loans are flexible and can be secured with either fixed or variable rates.
  
  
• SBA Loans: An SBA loan, or Small Business Administration loan, is partially backed by the US government and can be used to establish or expand your business. As a qualified SBA lender, Vast Bank delivers expert guidance and top-notch personalized service for this type of small business loan.

Business Credit Cards

A business credit card is very similar to a personal credit card, except that it is used for expenses tied to your business operations. Limits, rates, and payments vary on a case-by-case basis. You may need a business credit card to pay short-term expenses or to make purchases with a vendor that is only accepting credit cards.

• Types of Vast Bank Business Credit Cards: Business owners can also select credit cards based on their usage and preferred benefits. For example, Vast Bank’s Max Cash Preferred Card earns up to 5% cash back, while the Real Rewards Card earns points based on purchases.

The idea of switching to a new bank for your business checking, savings, and financing needs can seem daunting. Here are some of the common pain points encountered by businesses who choose a bank that better suits their needs, and how Vast Bank can help:

1. How do I know which bank is right for me?
   
   Every business has its own unique needs. Start by identifying what features you DO and DO NOT like about your current banking partner. Then, research your options to find a bank that offers comparable services and rates to the ones that have been working for you, as well as providing benefits that you’ve been lacking.
   
   Vast Bank’s community-based structure means we have the flexibility to tailor our offerings to small and medium-sized businesses of any variety. Don’t hesitate to reach out and ask how we can help.
2. How do I notify people who pay me that our information has changed?
   
   When you’re switching business banks, even the smallest details are critical. Vast Bank’s helpful representatives can provide you with guidance and tools that will help you identify and reach out to people who make payments directly to your account.
3. Is there a simple way to transfer my automatic payments?
   
   The hassle of moving automated payment processes to a new account can keep businesses from changing banks, even when a new institution offers better services and reduced fees.
   
   Vast Bank provides a personal level of service, meaning you’ll have a professional on hand to help you make the switch without a hitch.
4. How do I switch payroll systems?
   
   Vast Bank’s payroll system features are designed for usability. Our team will be on hand to support you through setup and beyond to ensure that your employees are paid promptly.

We firmly believe that there’s no better partner for a local business than a local bank. We’ve worked closely with thousands of small and medium-sized organizations to ensure that we provide the services and support you need throughout the life of your business.

Please don’t hesitate to reach out and see how Vast Bank can serve you.