How Bank Accounts Can Support Your Business’s Operations | Business
As a business owner, you rely on the support of many people every day: employees, suppliers, customers and, yes, bankers. A good banking relationship can provide more than just a place to deposit and withdraw your money. They can also provide the products and support you need to help you operate and grow your business.
Regardless of the size, age or type of their business, it’s important to keep personal and business finances separate when opening business bank accounts. These accounts range from simple business chequing and savings accounts to business credit cards, lines of credit and merchant services. In this article, we’ll discuss each type of account, their benefits, and what you should consider when choosing the best option for your business.
Types of business bank accounts
Company current account – A business checking account allows you to issue checks from your business, accept checks on behalf of your business, and separate your personal and business finances. Many current accounts offer additional business services. For example, the Chase Business Full Banking ServicesSM account comes with built-in card acceptance using Chase MobileÂ® application and fraud protection for your business and customers.
Business savings account – A business savings account allows you to save for longer-term goals while earning interest on your money. Many businesses open savings accounts to cushion unexpected expenses, set aside money for quarterly or annual taxes, and protect against overdraft fees. Most banks limit the number of withdrawals you can make a business savings account each month, so this type of account is generally not used for current expenses. Chase for Business offers different business savings accounts based on your business’s monthly needs and balance.
Business credit cards – Business credit cards allow business owners to separate personal and business purchases, protect their purchases, and often earn rewards that can be reinvested in their businesses. These credit cards also increase your purchasing power by filling temporary cash flow gaps. When it comes to business credit cards, there is no one-size-fits-all solution, it really depends on the business. Here is some questions to consider when choosing the best credit card for your business:
- Would you benefit from a card that offers higher rewards for travel?
- Are you spending more in certain categories like office supplies or technology services?
- Do you need a longer interest-free introductory period?
- Are you planning to make a major purchase in the next few months?
- Could you optimize your rewards and benefits by having more than one card?
Merchant Services Account – A merchant services account allows businesses to accept credit and debit card payments, Apple Pay, and other contactless payments from customers, which is more important than ever. Chase for Business offers a number of payment solutions, including mobile payments that target today’s businesses and customers on the go.
What you need to open a business bank account
Although banks may have different requirements depending on the type of business account you want to open, most of the requirements include the same basic elements:
- Employer identification number (or social security number if you are a sole proprietorship)
- Business creation documents
- Ownership Agreements
- Business license
Be sure to check the bank’s website for specific information.
For informational / educational purposes only: The opinions expressed in this article may differ from those of other employees and departments of JPMorgan Chase & Co. The opinions and strategies described may not be appropriate for everyone and are not intended to be specific advice / recommendations for an individual. You should carefully consider your needs and goals before making any decisions and consult with the appropriate professional (s). Outlook and past performance are no guarantee of future results.
JPMorgan Chase Bank, NA FDIC Member. Â© 2021 JPMorgan Chase & Co.
Deposit and Credit Card Products Provided by FDIC NA Member JPMorgan Chase Bank. Accounts subject to credit approval. Restrictions and limitations apply. The costs and the characteristics of the products can be modified at any time. All accounts are subject to approval.
Chase Business Complete Banking is available in the United States, excluding Alaska, Hawaii, and United States Territories.
Fraud protection services are available for qualifying business chequing accounts and include positive payment service (âpositive payment serviceâ or âcheck protection servicesâ), reverse positive payment service (âpositive payment serviceâ). positive reverse âorâ check monitoring â), and the ACH debit blocking service.