If you have a business, then having a bank account is very important. There is no way you can sell and save your profits in your house. Furthermore, some of your clients will prefer paying you via a bank account rather than cash. You can open a free business checking account online with no deposit at various banks. Other banks will require you to make a small deposit once your account becomes active. Furthermore, the deposit is still your money and not a fee.
You can open a bank account online or at a physical bank. Nowadays, it is straightforward to open an account online using your smartphone. Therefore, you can save a lot of time that you could have wasted queuing at a bank to fill out forms. You can even upload the required documents with a lot of convenience. You only need to ensure that everything is correct to hasten the verification process.
Business bank accounts have many advantages, with the core importance of being able to help your secure loans. No bank or credit union will give you a loan if you are not their customer. The more you save, the more you qualify for a bigger loan. Loans help you to grow your business to great heights. No business has ever grown without loans unless you have another source of revenue, such as a high-paying job.
What is a bank account?
A bank account is a special arrangement that you make with your bank to deposit money for saving or for your recurrent expenditures. You can open a personal or a business account. There are various bank accounts such as checking, savings, CD accounts, and brokerage accounts. You can even get a free checking account no credit check or deposit at various banks and credit unions.
For our case, we are looking at a business checking account. A business checking account allows you to spend on things such as stock, vehicle repairs, transportation, renovations, and so on. The account is different from your savings account. Every business requires money to keep it running and thus the need to have an account with sustainable funds.
When you open a bank account, you get a special entity at your bank. The bank assigns you a special number called the account number. It could be very confusing if people just took money to a bank without getting special recognition. When people are paying you via a bank account, they require the account number to transfer money to the account.
How to open a free business checking account online with no deposit
Opening a business account is an easy process. The first thing is doing proper research on the available bank accounts and their requirements. There are factors you should consider when opening your business checking account. They include the following.
i) Monthly maintenance fee
Monthly maintenance fees are charged to keep your bank account running. It is a way banks use to make money. Not all banks charge monthly maintenance fees. If you get a bank without monthly fees then the better. Some monthly maintenance fees are minimal and may not have a major impact on your account.
ii) Opening deposit
We are looking at how you can open a bank account without an opening deposit. Most banks and credit unions require you to make an opening deposit as soon as you open your account. If you get a bank account without an opening deposit, the better. However, a small opening deposit will not harm your financial standing.
iii) Annual fees
There are banks that charge annual fees when you open an account. You should focus on having a business checking account with little or no annual fees. By doing that, you will be able to save a substantial amount of money.
iv) Transaction limits
Transaction limits are the maximum amounts of money you can spend from your account per given period. You can have daily transaction limits, weekly transaction limits, and monthly transaction limits. You should consider bank accounts with higher transaction limits so that you can spend as much as possible on activities that concern your business.
V) Ease of opening an account
Consider an account that you can open online using your smartphone. There is no need of wasting time queuing at banks to open bank accounts since you will be wasting time.
ChexSystems monitors account usage. If you are the kind of person that misuses bank accounts by writing bouncing checks and closing accounts without paying the necessary fees, then you are likely going to find yourself on the ChexSystem list.
If you have a poor banking history, you may consider a second chance checking with no opening deposit. However, there are banks and even credit unions that do not use ChexSystems.
viii) Sign up bonus
It is wise to take advantage of the various bonuses that banks offer when opening a bank account. However, you should not forget to check the other factors since some financial institutions may lure you into expensive accounts by offering you big bonuses.
Once you have checked the above factors and chose the correct account, you can then open it. The following are the things you require to open an account.
- Personal identification, such as a passport or driver’s license
- Social security number (SSN) or employer identification number (EIN)
- Partnership agreement containing the name of the business plus its partners (in case a business has multiple owners)
- Business license containing the name of the business and the owner’s name(s)
- Certificate of assumed name/DBA
- Physical address
- Phone number
- Email address
- Organizing documents filed with the state
- Monthly credit card revenue (if you want a merchant account)
Once you have all the necessities, you can then proceed to open your account. When opening a business checking account online, you need to visit the concerned bank or credit union’s website and fill in the necessary information.
You also need to upload the required documents. Banks may have additional requirements other than the basic ones, and you have to ensure that you complete all the information accurately.
What is the importance of a business account?
There are various advantages to having a business account. They include the following.
1. Separates your business and personal expenses
If you mix business and personal expenses, you will not determine the profit and losses of your business. You will also find it difficult to pay taxes since the taxman will charge you more than the value of your business.
2. Safeguards your personal property
If you mix the personal and business expenses, you risk your personal properties, such as your house or car, being auctioned if you fail to pay a loan. Separating the two ensures that only properties related to the business are auctionable if you are unable to pay a loan.
3. It makes you appear professional
When clients pay you and see the name of your business, they can see professionalism in it. You even create more trust for your clients and can get a customized debit card for your business checking account. Furthermore, your accountant’s job becomes very easy.
4. It makes it easy to qualify for loans.
A business checking account puts everything clear, and creditors can easily track your financial activities to determine your loan limits.
Can I send money with a business checking account?
If you have a business checking account, you can send money with a checking account number instantly to your clients. You will also use your debit card to pay for your goods and services.
When sending money to people from the same bank as yours, you only require their account numbers. You may also need to enter their legal names if the need arises. However, when sending money to recipients of a different bank account, you will require both the account and the routing numbers of the recipient.
The routing number helps to identify the recipient’s bank. Transferring money to a different bank takes around 3-5 days to complete, unlike account-to-account transfers within the same bank.
Can I get a credit card for my business?
You can get a credit card for your business account. Most financial institutions offer credit cards for your business account if you have good credit scores. However, you can get a credit card for bad credit scores or young businesses.
You can even get a secured credit card to grow your credit scores and qualify for high limit credit cards. Good credit scores also ensure that you get credit cards and loans with low-interest rates.
Credit cards allow you to borrow money from your bank or credit union to use for your expenses and pay later after a month or specific period.
Which business checking accounts can I open without a deposit?
There are various business checking accounts you can open today at various institutions without depositing any money. They include the following.
- Chase Business Complete Banking
- Chase Performance Business Banking
- NBKC Business Money Market Account
- BlueVine Business Checking
A bank or credit union account is a special arrangement with the concerned financial institution for you to deposit and withdraw your money. A business account helps to keep your finances separate from your personal expenses.
You can open a business checking account online or at a physical office of your institution of choice. A business account keeps your business professional and allows you to easily secure loans.