If you are an entrepreneur, opening a business account should be at the top of your to-do list. It’s a must-have if you want to manage your finances well, and getting a separate account for your business will increase your chances of qualifying for a business loan in the future. Community and regional banks work best for small business owners. These banks not only offer personalized services, but their terms are also friendly enough to accommodate the individual needs of small business owners and help their companies thrive. If you are looking for the best banks for small business, you have come to the right place. There are plenty of these banks throughout the U.S and you are guaranteed of finding an ideal bank for your business within your location.
15 Best Banks for Small Business
1. Citizens Bank – Northeastern U.S.
Best for low fees
This bank offers a variety of checking accounts with minimal charges that are ideal for start-ups and small businesses. The bank also offers low-interest loans with flexible terms and a repayment period of up to 7 years.
- Attractive loan packages.
- Checking accounts that are friendly to small businesses.
- Keen on building personal relationships and assessing each business’s unique needs.
2. PNC – Mid-Atlantic Region
Best for beginners
This Delaware based bank ranks among the top 10 largest banks in the country and for a good reason too. With over 2500 Branches spread throughout the Mid Atlantic, it is no wonder that this bank ranks among the best banks for small businesses. The bank also offers a number of checking accounts specifically designed to meet small business needs. The good thing is that accounts fees are minimal and with good planning, you can avoid these fees altogether.
- 3 tier checking accounts that cater to beginners and more established businesses as well.
- Low account maintenance fees.
- Specialized checking services that include interest-bearing accounts.
3. U.S. Bancorp – Midwestern U.S.
Best for small businesses with diverse banking needs
U.S Bancorp has joined the big league in the banking industry and all indications are the bank will continue to grow with time. Even though this bank is among the largest in the market, it offers very friendly terms and services to small business owners. This explains why it features prominently in this list of best banks for small business. From low-interest loans to affordable chargeable accounts, Bancorp has it all and so much more.
- Variety of checking accounts for different types of businesses.
- A vast branch network.
- Friendly loan terms for small businesses.
4. SunTrust – Southeastern U.S.
Best for accessing medium to long-term loans for small businesses
If you plan to take a medium to long-term loan for your business, SunTrust bank is the place to go. Like in any traditional bank, you will have to prove that your business is financially sound to qualify for a loan. That said, small business loans at SunTrust are quite accessible as long as you have valuable collateral.
- Easy small business loans with friendly repayment terms.
- A variety of checking accounts for different business sizes.
- Low account maintenance fees.
5. Comerica – Southwestern U.S.
Best for long-term relationships
Comerica is among the best banks for small businesses whose owners want to build a lasting relationship with their bankers. If you are looking for a bank that will stay with you throughout your journey as a small business, Comerica is a good option. If your business is in the Southwest region, consider opening a business account at Comerica.
- No monthly fees on a business checking account.
- Low ATM and deposit fees.
- A dedicated workforce trained to offer the best credit solutions for small businesses.
6. First Republic – East and West U.S.
Best for easy access to your money in all parts of the world
If you frequently travel to far-flung areas of the world for business, the First Republic bank will meet most if not all of your business banking needs. The checking account comes with low access fees for ATMs in all parts of the world in addition to low maintenance costs and low minimum balances.
- Zero access fees to international ATMs.
- Flexible online banking.
- Convenient bill pay.
7. Sunrise Bank – Minnesota
Best Payday Alternative
Sunrise Bank is one among the few institutions dedicated to offering loans to businesses in low-income areas. This bank also goes a step further and offers loans to employees of its customers. Once a small business has established a relationship with the bank, its employees also qualify for a loan. Unlike larger banks that may not offer a large variety of products for your employees, Sunrise bank works hard to ensure that these employees are not left behind. These among other reasons make it one of the best banks for small business.
- Direct lender for small businesses
- Reasonably priced loans for small businesses and their employees.
- Loans of up to $3,000 for their customer employees.
8. Eastern Bank – New England
Best for business lending
The Eastern Bank stands out as far as business lending is concerned. The bank has a loan system that is not only fast but also quite efficient. The loan application process is easy and this possibly explains why Eastern Bank has remained the top SBA lender in the New England region.
- Loan application complete in 5 minutes.
- An instant decision for loan eligibility.
- Express business loans for small businesses that meet the minimum requirements.
- Business loans for up to $100,000.
9. Key Bank – 1,197 Branches Throughout the U.S.
Best for multiple accounts
Key Bank offers three checking accounts and these come with features and perks designed to make banking for small business easy. The bank also offers credit facilities for small businesses among other services. Those reasons, along with its strong presence (over 1,000 branches in the U.S.) make Key Bank one of the best banks for small business.
- Interest-bearing accounts with unlimited bill pay support and up to 100 free transactions for every billing cycle.
- Customer support aimed at helping businesses to thrive in a highly competitive market.
- Different checking accounts for beginners and already established businesses.
10. Azlo – Digital Bank
Best for digitally driven small businesses
This is where things get interesting. The best banks for small business are not just the ones you can visit from time to time. Even digital banks are ranked among the best in the industry.
Azlo is a startup bank but it is already taking the banking world by storm. With an online-only checking account for businesses, Azlo offers freelancers and other businesses operating digitally quick and hassle-free banking. Even better, this is a non-fees account that will help you manage your business account before your business becomes profitable. It is safe to say that an Azlo checking account is a welcome break from the traditional brick and mortar banks. The only downside is that it does not offer credit facilities.
- Non-fee checking account.
- Online only checking account that you can open without visiting the bank.
- No loan facilities.
11. Wells Fargo – National
Best for catering to large and small businesses
Wells Fargo is the third largest bank based on its total deposits and having $2 trillion in assets. It was the most active SBA lender in 2016 lending over $1 trillion to small business owners. The bank has over 7,800 locations and 13,000 ATMs along with internet and mobile banking.
- According to S & P Global Market Intelligence, Wells Fargo has the most comprehensive mobile app.
- Wells Fargo has been in business since 1852.
- Flexible lending programs.
12. Chase Bank – National
Best for offering a variety of loan options
Chase Bank is a one-stop financial institution offering term loans, lines of credit from $10,000 to $500,000, commercial real estate loans, and equipment financing. In addition to loans and business checking accounts, Chase Bank offers business credit cards. Attractive incentives to get one include substantial cash back and rewards points earnings.
- Online full-service payroll program and access to human resources features.
- Scan deposit checks to your checking account electronically.
- Merchant service accounts are available.
13. Capital One – National
Best for helping with cash flow
The bank offers working capital lines of credit, equipment and business auto loans, installment loans, and SBA loans. Capital One routinely offers lower-cost business loans when you’ve already established a relationship with the bank.
- Business debit card, online bill pay as well as online and mobile checking.
- Cash flow management tools.
- Guides are available to teach you how to grow your business.
14. Bank of America – National
Best for improving efficiency
With a 200-year history of helping small businesses, Bank of America actively offers new credit options to small business owners and helps you find ways to waive business checking account fees.
- Business and employee debit cards.
- Point of sale software to reduce your business’s workload.
- Easy to use banking products and services.
15. Citibank – Six Urban Locations
Best for digital services
With locations in New York City, Washington, D.C., Chicago, Miami, Los Angeles, and San Francisco, you can still bank online digitally to use Citibank’s services. Along with business checking accounts, the bank has savings, money market, certificates of deposit, business loans, and credit cards.
- Secure CitiBusiness online account access.
- Industry-based bank packages.
- Fraud protection, mobile banking, and FDIC insured accounts.
How to Find the Right Bank for Your Business
So out of all the best banks for small business, how do you determine which one is ideal for you? Well, you need to first outline your business needs as far as banking is concerned. Considering the fact that no two businesses are alike, you will have to make a decision based on what your business needs are. Other factors to include are:
- Branches and location
Have in mind that some of the best banks for small businesses described above operate only in certain regions. Needless to say, you should pick your bank according to your location. Also, having a branch near you is ideal especially if you need to do regular deposits and withdrawals in person. This also helps in creating relationships. To sum up, go with a bank that is in close proximity to your business. This way, you can walk in and out of the bank whenever necessary and with relative ease.
As a rule of thumb, cheaper is better, especially where a small business is concerned. Fortunately, most institutions in this list of best banks for small business provide business accounts that are available at no charge.
- Finance Options
Different banks offer different finance options to small business owners. From a line of credit to fully drawn advance option, banks offer different incentives to help small business owners grow their businesses. A good bank should also offer business loans when and if you need them.
- Requirements for opening an account
When opening an account in person, most banks require two forms of identification such as a Social Security card, driver’s license, state ID, passport or birth certificate. Bear in mind that if you are not a U.S. citizen, you may still be able to open an account with identification issued from your home country. Also, most banks require a minimum opening deposit in your account. Expect to deposit between $25 and $100, although it could be more.
- Products and features that may be beneficial for your business
Does the bank of your choice offer online banking? As a business owner always on the go, online banking is a must. What about a business credit card? When properly used, a business credit card can help you capitalize your business, but you should pay attention to the small print and features offered and compare different cards before making a choice on the credit card you want for your business needs. Lastly, consider additional services depending on the nature and specific needs of your business: does the bank of your choice offer payroll and benefits services? What about merchant services or insurance for your business?
The First Step to Grow Your Business
Finding your perfect choice among the best banks for small business is just the beginning to make your business grow. Remember you’ll need a business bank account if you are planning to take a business loan in the near future. Your lender will need to access your bank statements to check your average balance, your deposits and withdrawals, and your cash flow, among other details, to ensure the overall good health of your finances. Learn here how to manage your business bank account to improve your chances of getting a loan.
If you are ready to take that step, consider a small business loan from Camino Financial. Camino Financial lends to businesses all over the U.S. through its secure and simple online platform. Our process involves just 4 easy steps:
- Complete a short online application to receive an instant quote. It will take you only a few minutes, and it won’t impact your credit. You’ll know instantly if you are pre-qualified for a loan.
- Authorize Camino to download your recent bank activity to calculate the maximum loan amount
- Submit proof of business (e.g. business registration) and sign the loan contract
- Receive cash directly in your business account.
Start growing your business by applying today for a loan!