Planning to start a startup but not sure which bank to choose? Cheqly is here to help you. In this era of technological advancement, entrepreneurs are getting all the help, ranging from tools to fast internet, so that they can start a business and make it successful.
Choosing the right bank for startups is exceptionally noteworthy. Banking for startups must be chosen after a detailed comparison. You must wisely choose the bank which has expertise in the fields that complements your startup’s needs. If you choose the right bank in the initial stages of establishing your business, you will face very few economic problems later on.
Importance of choosing the right bank for startups
Choosing the right bank to open a business account is extremely important. If a beginner chooses the right bank for the startup, there will be observable growth in the business. Bank funding may be the difference between success and failure for many entrepreneurs. The benefits of choosing the right bank are as follows:
- The benefit a good bank furnishes is that it provides you with capital, which can be used to buy equipment, hire employees and advertise the startup.
- The right bank provides you with a sense of security in case the entrepreneur has fewer personal savings to invest.
- Having funds from an outside source helps the entrepreneur to save time and focus on growing the business which he could have wasted worrying about unexpected expenses.
- It helps the startup to build a good credit history that will help them to establish a healthy relationship with investors and lenders.
- The startup owners may also take loans from a reputable bank to manage debts and make timely payments. This will help to create a healthy relationship and get them additional funds if required.
- Choosing the right bank will help you get the best expert guidance. Many banks offer new entrepreneurs consultancy services that allow them to understand their industry better and manage their funds more efficiently.
- The right bank gives the new entrepreneur peace of mind in times of recession or when the market is in a downfall. A good bank will back you at such times and help you cope with the demand.
What factors must you consider while choosing a bank for the startup?
As a wise entrepreneur, you must always compare all the available offers and choose the one that best compliments your business. However, it is equally important to go deep into the details so that you don’t have to face any problems in the future. Several factors have to be taken into consideration before choosing the bank.
- Account Options and Fees – Before opening an account, you should compare all the account options provided by the bank and choose the one with the highest return. There are several account options, like Business Checking Account, Business Savings Account, Cash Management Account, Merchant Account and others. The next thing you should check is the fees that the bank is charging you. You must always choose the bank with the lowest prices. There are several fees that the bank charges, like Maintenance Fees, Transaction Fees, ATM Fees and Deposit Fees.
- Business Credit and Financing – Business Credit refers to the ability of a business to borrow, which means how easy it is to access credit cards, loans and offers. You must always choose the bank which offers you the best business credit and best offers so that you can grow your business positively. Financing is another impactful aspect of choosing the right bank. The bank that provides you with funds and finances with the highest possible capital for your business and takes a very reasonable amount of interest on the business will be the best bank for you.
- Online and Mobile Banking Features – In this era of digitalisation and technological advancement, and a fast-moving market, entrepreneurs don’t want to waste their time and want to know their bank details and data instantly. So, before choosing a bank for your startup, you must go through all the bank’s online and mobile banking features. A bank which provides good online banking features will help you a lot as it saves you time that you can utilise somewhere else in your business.
- Customer Support and Accessibility – Before jumping directly into opening an account in any bank, you should check their customer support service. If the customer support service isn’t good initially, then it may not be good in the future too. So choose a bank that provides you with a good customer support service. Accessibility should always be taken into account before selecting a bank. If you don’t have access to the higher authorities or the branch manager, then it is a big red flag. Because if you can’t have a relationship with the leaders, it may be difficult for you to settle the problems in the future.
- Security and Fraud Protection – Security is a must when choosing a bank. You should always open a business account in a highly secure bank with a high-tech fraud prevention mechanism. If you are choosing a bank for a startup, then you should at least have basic knowledge about the bank’s security and fraud protection system. If they have a good plan, they will be able to detect it as soon as possible and could inform you about it. This may prevent you from investing in any fraudulent activity.
- Reputation and Stability – Finally, the bank you choose to open a business account with should have a clean reputation. If you choose a bank with a bad history or stability, then it may affect your business too. If you choose the right bank for your startup, then it may be helpful for you to grow your business. The bank you are choosing must have stability so that the interest rates don’t fluctuate very often. This will not put an extra burden of interest on you.
Evaluating Bank Options
An in-depth evaluation is a must when choosing a bank for the startup. It will provide you with different facts and figures to make a decision.
- Research and comparison of different banks should be done in detail. The study gives you the knowledge to compare other banks to choose the right one.
- Reviewing the features and benefits of an account gives you the vision to invest in the right one. Reviewing helps you to choose the type of account suitable for your business.
- A complete analysis of the fees and costs of different banks should be done. This will assist you in getting a cost-effective bank.
- Customer review matters a lot. Assessing the thoughts and experiences of the customers of different banks will help you to make a choice.
Make a Decision and Setup your Account
And finally comes the time when you have considered all the factors and have evaluated all the banks. Now you have to make a decision and choose the right bank to set up your account. Take the following steps as your base:
- The first step is to choose the bank that best fits your needs. The bank you should choose should fulfil all your requirements. It should provide you with the best banking experience.
- The next step, and a very important one, is to prepare the necessary documents and complete the documentation. You must be very careful while preparing the documents.
- Opening your business bank account should be your next step. The business account offers you a more manageable and more organized handling of expenses, fewer tax-time headache and professionalism.
- The final step towards opening an account is setting it up online and accessing the mobile banking systems. This will help you save a lot of time and provide virtuosity.
Why Choose Cheqly as your Banking Partner?
Cheqly is a financial technology company. It is a neobank for startups that helps to open a business account right from your mobile or laptop. It helps to open an online account without any inconvenience. It gives you transparent pricing, faster customer support, intelligent account management and a highly secure protection system. Opening an account with Cheqly has many features and benefits.
- It helps you to open a US Business Account.
- No monthly or annual account fee has to be paid to open an account.
- No minimum balance has to be maintained to enjoy the services.
- Helps in the fast transfer of money locally and internationally.
- Provides you with a physical and digital VISA debit card.
Experience Digital Banking with Cheqly
Digital banking with Cheqly is a different experience as it provides many features that help a newbie open an account without any difficulty. Although, in case of any problem, Cheqly provides its customers with a fast and convenient customer support service. It is a highly secure platform to open an account and transfer money safely. You must at least once experience digital banking with Cheqly.
Choosing the right bank for a startup is extremely important. If you follow all the above-provided steps, then you can choose a better bank for your startup. If you want to open an account online, then cheqly is the platform you are searching for. It will provide you with all the features you may require to open an online account for your startup.