Open a commercial bank account

Open a commercial Bank Account

Choose a bank that is interested in servicing (and financing) small businesses.) You can usually judge them by their eagerness to obtain your business account.  Here are a few questions to ask your prospective banker to assist you in making your selection:  

1.Is it necessary to maintain certain balances before the bank will consider a loan?

2. Will the bank give you a line of credit, and if so, what are the requirements?

3. Does the bank have limitations on the number of small loans it will grant or the types of businesses to which it will grant loans?

4. What is the bank’s policy on the size of checks to be held for collection?

5. Will checks under that size be credited immediately to your checking account balance? (This question is very important, and you must press for a definite answer.)

If you do not have a previous business account for a reference, a few banks may hold all checks for collection until they develop experience with you.  (Whether or not the bank exercises this precaution may depend on your personal credit rating.)

 

Credit Cards

Set up any company credit cards for this account at this time as well. You can apply for one at your local bank or you can apply for an American Express card.  The AMEX is very flexible and valuable tool to help streamline your accounts payable process for your business. (not for property management accounting) Shop around to find the best interest rates, frequent flier miles and other “perks”.  There are many different options and rates on accounts.