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Best banks for small businesses?

Tahani
Established Member

Best banks for small businesses?

Hello. I’m hoping y’all can advise me about the best banks for small businesses. I have a sole proprietorship that I hope to grow, and I would like to establish a relationship with a good bank now, so that if I want to get a business loan or anything down the line, I will have a better shot. My business income is quite low currently, but is growing. I hope to find something with a low monthly fee and minimal extra fees.

Also, which business credit cards are the best, and what is the advantage of using cards that are specifically for businesses, vs using one personal card solely for business? (I have no employees, only occasional contractors/freelancers who do small jobs for me.)

Thanks in advance!
Message 1 of 7
6 REPLIES 6
Richard_Kiel
Valued Member

Re: Best banks for small businesses?

In my old fashioned way of thinking, a small local community bank is what you want.

 

There will usually be a few powerful locally-owned businesses in your area.  Look to see which bank they are using.  A lot of them will be using Chase or WF by inertia, because they bought up a lot of the little banks in the Great Recession, but if you look hard enough you might find the truly local bank I am talking about.

 

Our old local bank was forced to sell out in the Great Recession.  But one of the local powerful businesses reached out to a nearby one-office bank and got them to start in this town, making them now a two-office bank.

 

Then, you will have access to real officers with real decision making power, and the bank president, if need be.

Message 2 of 7
ispdude
New Contributor

Re: Best banks for small businesses?

Look up the top SBA lenders in your state.  Those banks are generally the most business friendly.

Message 3 of 7
SouthJamaica
Super Contributor

Re: Best banks for small businesses?


@Tahani wrote:
Hello. I’m hoping y’all can advise me about the best banks for small businesses. I have a sole proprietorship that I hope to grow, and I would like to establish a relationship with a good bank now, so that if I want to get a business loan or anything down the line, I will have a better shot. My business income is quite low currently, but is growing. I hope to find something with a low monthly fee and minimal extra fees.

Also, which business credit cards are the best, and what is the advantage of using cards that are specifically for businesses, vs using one personal card solely for business? (I have no employees, only occasional contractors/freelancers who do small jobs for me.)

Thanks in advance!

I think Chase is the best.

 

And coincidentally I think their business cards are the best too.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 4 of 7
samadkins29
Contributor

Re: Best banks for small businesses?


@SouthJamaica wrote:

 


@SouthJamaica wrote:

 

I think Chase is the best.

 

And coincidentally I think their business cards are the best too.



I like Chase as much as the next guy, but I dont think they are the best - but I cant say they are the worst. When I went looking for a bank for a new LLC I formed (I ultimately wound up back at my Credit Union for both personal and business) - it was all about the transaction limits for me. My business does not have many hard transactions directly with the bank - IE Im not depositing customers checks or cash every night or taking multiple wire payments. I also knew I wasnt going to have a large starting balance - you always bleed cash while you get things going. My point is that right now, its entirely free. I pay no transaction fees or account fees. 

 

@OP - take the top 5 banks in your area and read what you actually are getting on there business checking pages. You might be surprised by the small differences that may make a big impact on your business.

Message 5 of 7
Revelate
Moderator Emeritus

Re: Best banks for small businesses?

Will suggest that both BOFA and Chase have stepped up their game so much with higher tiers of financial assets on deposit, and BOFA especially looks really sweet on the business side if you keep retained earnings with them as investments via Merril Edge, that it's hard to pass up especially when you can bonus out their Travel Rewards card to something like 2.625% on everything which is nothing short of amazing imo for default spend.

 

I use Chase personally, but a local bank may not be a bad option either.

 

Also I'm not so sure what SBA loans look like for SP's, if you're doing something real it might be worth incorporating.

 

As for separate tradelines, if you're SP it doesn't matter, but if you're incorporated / seperate tax entity of any sort then absolutely keep things ridgidly separate and it's worth picking up a business card to start building business credit... and my first card for any new business will be with Chase: only one that reports basically everywhere you want and nowhere you don't.




        
Message 6 of 7
businesshelp
New Visitor

Re: Best banks for small businesses?

Message 7 of 7
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