Startup is a term widely used and heard after the dot com bubble although by definition, its origins could be traced back to the post-Great Depression era. Apple, Google, IBM, even Microsoft, entrepreneurships that had solo or co-founders looking to go far and beyond their masterminds are theoretically startups. When they go platinum, as the music scene would call it, meaning their valuation surpasses $ 1billion, they are called unicorns and become international sensations no matter where they originate from.
A sound startup sprouts from a bright idea and takes form through an innovative business model mostly. These two components do not suffice for a project to qualify above the line of elimination though, after all startup habitat is a graveyard of projects where very few live to see the next day ornate by rainbows. Those unicorns or their siblings that prance around rainbows do also possess a strong financial backing and that comes from the right kind of choices made while picking the bank that will make or break the future.
Best Bank for Startups
There is no such thing as the best bank for startups – the best one is the one that caters to your specific needs the best. Just keep in mind that bank accounts for entrepreneurs is a must as you will have a clearer understanding of your income and expenses and illustrate your startup’s financial health in the most effective way. So, let’s take a look at bank options for beginners to paint the picture.
Your next block conventional bank might be more than enough for your startup, actually. These banks are not picky about the size of your company or industry and their products offer personal liability protection and, for merchant services accounts, purchase protection. Merchant services are essential for businesses’ ability to accept credit and debit card transactions from their clientele. When you consider opening a business account at the same bank that holds your personal account, you might even get your hands on perks such as approval despite a poor credit score or exclusive offers and deals for being a loyal customer who might mean a lot more in the future.
How to Open an Online Bank Account
An alternative to possessing an online bank account for startups is offered by online financial service providers. Do not fret at the word “bank” being omitted – these institutions are no less regulated and take all the steps to verify the identity of the business to comply with the regulations thereto. Plus, they need less paperwork, streamlining the registration process, speeding up getting business bank accounts up and running. These new gen tech-driven banking options inherently feature better integration with software your company might be using. This alone would be a game changer as an alternative against traditional banks for entrepreneurs.
A business cash management account is another product among bank options for startups – a single product offered by non-bank financial service institutions where checking, savings and investment accounts are bundled together. These products may even be bolstered by features such as check writing, overdraft programs and a credit line etc.
It is without a second thought that figuring out the best bank for startups is one of the most underrated top management decisions in a journey destined to be rough.