Banking for Startups: What are the Best Business Bank Accounts?
Starting a new company can be very task heavy and finding the right bank account can be daunting. Not only do you need to understand the specific banking services your business needs, but going through the on-boarding process and strict regulations can make it even more tedious.
When choosing a bank to open a business account for a new startup, make sure you understand your requirements and what you need from your banking relationship. Once you can identify those needs, you can rule out any bank that doesn’t offer those services and focus on banks that can meet your needs.
There are several important features that all startups need from their business bank accounts:
1. Cross Currency Transactions
It’s typical for startups and high tech businesses to have global operations and have employees, affiliates, and suppliers around the world. Therefore it’s very important to be able to send and receive payments in common currencies such as US Dollars (USD), GB Pounds (GBP), and Euro (EUR). Additionally, the bank’s SWIFT and SEPA systems should be compatible with USD and EUR as well.
2. Forex/Currency Exchange
With the frequency of cross currency transactions being made in the startup environment, the bank must have a Forex system in place. This Forex system will convert currency when receiving or sending payments relative to the current exchange rate. Startup companies can have bank accounts that are multi-currency or have a separate IBAN for each individual currency.
3. 24/7 Customer Support
Since most startup and high tech companies operate globally, it’s common to have unusual work hours across multiple locations. Therefore it’s highly advisable to open a business account in a bank that offers 24/7 customer support services.
Tips for Opening a business Bank Account
Open an account remotely
Some banks give you the option of opening a business bank account online. While some businesses can open an account online, some startups will need to visit the bank in person. Most likely you will have to open an account in person if your company provides gaming, financial services, telemarketing, or high risk activities. Whether or not you can open your business account online, you will most likely be required to visit the bank to sign documents.
Have your paperwork in order
To ensure the smoothest process, make sure you have all the required paperwork and documents ready. Find out what you’ll need before you make the trip to the bank. Different bank account types require different paperwork which can include articles of incorporation, signatories, personal identification, tax related documents, and more. Find out beforehand whether these documents need to be notarized as some banks have this as a requirement.
Make sure your bank offers a relevant payment system
Since multi-currency transactions are common in startup companies, make sure your bank account allows for cross-currency payments. With the likelihood of a large amount of global financial transactions it critical that your account accommodates this need. Having employees, affiliates, and suppliers around the world, requires you to have the ability to send and receive payments in main currencies like USD, GBP, and EUR. Make sure to find a bank with a stable payment system and with the lowest possible fees.
Michael Dewan is head of PR at GBO International Financial Services LTD . GBO is becoming a world leader in providing corporate services for international companies. These services include assistance with: incorporation of companies, opening business bank accounts, licensing, payment solutions, nominee services and more. GBO offers the most innovative A to Z financial solutions for high-tech companies, eCommerce, and more.
