Combining your business and personal finances into one account may seem the most straightforward and least expensive. It is much better to open and maintain at least one separate business bank account from your finances for easier tracking of business expenses, presents your company in a more professional light, and allows you to take advantage of tax credits and deductions available to small business owners.
Financial products and services offered by banks differ for small businesses and start-ups. There may be many fees, lending options, and perks. Here are eight tips to consider when shopping for a bank to meet your business needs.
Top Tips For Choosing a Business Bank
If you’re starting a business in Malaysia, you’ll need to choose a business bank account first. Here are some tips for making the right choice:
- Consider your Business Needs: Before looking at different bank accounts, consider what you’ll need from your account. For example, do you need a business account that offers online banking or one with physical branches? Do you need an account that offers many free transactions, or do you anticipate having a low volume of transactions?
- Compare Fees: Bank fees can add up quickly, so it’s essential to compare the prices and charges of different business bank accounts. Look for funds with low or no minimum balance requirements and reports that offer free or low-cost transactions.
- Check the Interest Rates: If you plan to keep a balance in your business bank account, it’s essential to consider the interest rates different banks offer. Higher interest rates can help you earn more on your money, so look for an account with competitive rates.
- Look for Additional Features: Some business bank accounts offer other features, such as overdraft protection, merchant services, and business loans. Consider what features are essential to your business and look for a bill that offers them.
- Consider the Bank’s Reputation: Choosing a reputable and reliable bank is essential. Look for banks with a good track record of customer service and security.
- Consider the Location of the Bank. What is the site of the bank? Ensure the bank is close to your office, home, and travel places. Would you like to be able to make deposits every day or every week? Is it common for you to withdraw cash for your business? Have you ever needed certified checks issued by a bank? Would you like to use ATMs at nationwide locations without paying fees while you travel for work?
Considering the nature of your business and the frequency of your bank visits will help you make the right decision. Make your choice accordingly if you visit the bank more than once a week. The same applies if you travel nationally and need a trustworthy bank.
Where Are The Perks?
Gift cards are offered by some banks to attract new customers. Opening a new account with some banks can result in a cash bonus. Some companies provide payroll services, hotel discounts, lowered insurance rates, and even tax preparation services. While you shouldn’t base this critical decision on good “perks,” asking about what’s available to new business accounts may earn you an additional bonus or some worthy discounts. You can also use it to break a tie between two banks if you cannot decide between them.
Trust Your Gut
It’s all about building a relationship at the end of the day. Are you comfortable with the bank and its offerings? The bank should make you feel comfortable, and you should be able to trust it. Finding a bank that truly understands your business is worth the effort. Refrain from settling for anything that feels wrong or compromises essential needs. By following these, you’ll be able to find a business bank account that meets your needs and helps your business succeed.
The Bottom Line
A bank is essential if you run a business. Take the time to consider what you need and what each bank can offer. Furthermore, remember that if you’re unhappy with your current bank or outgrow it, you can change it up. Your business needs to have a good relationship with your bank, so pay attention to it!
