If you’re serious about running and growing your small business, you’ll want to set up abusiness bank account ASAP so you can start managing your finances (and, eventually, apply for a small business loan).
But when you start searching for a bank to work with, you’ll quickly realize that finding the right small business bank is easier said than done: It takes more than just knocking on the door of the bank nearest your business. But it can be overwhelming to sort through the fine print on bank websites and really figure out if they can offer the products and services your business truly needs.
Lucky for you, we’re here to do some of the heavy lifting for you—we’ve scoured the banking landscape and put together this definitive guide on small business banks. First we’ll show you how to find the right bank for your small business, then the four overall best banks for small businesses in 2018.
Before You Find a Small Business Bank, Find the Best Small Business Credit Card
The thing is, though, that finding banks with great checking and savings options will be easy—but finding a bank that will also lend you money can be tough, since bank lending to small businesses is down across the board. Additionally, credit cards are becoming a product you consider discretely, not necessarily based on which bank it’s attached to.
So, deciding on a small business bank will really come down to what you’ll be using that bank for the most: checking and savings accounts.
And if you don’t have a business credit card, start shopping for one now. Business credit cards are crucial financing tools for every small business, because they give you an immediate, flexible source of capital. The best way to find a business credit card is to search the market according to what your small business needs.
Here’s a list of a few of our favorite business credit cards, based on common needs.
1. 0% Intro APR Period
Amex’s Blue Business Plus is our favorite 0% intro APR period business credit card on the market. Why? That intro APR period is 15 months long, the longest we’ve ever seen. Keep in mind, though, that after your 15 interest-free months are up, a variable APR sets in at a rate depending on your creditworthiness. This rate will also vary with the market, so check the issuer’s terms and conditions for the latest APR information.
Chase’s Ink Business Preferred business credit card is hands-down the best travel card on the market right now thanks to their stellar sign-up bonus: You can earn 80,000 points after spending $5,000 in the first three months. If you use Chase cards for your personal spending, too, this card is even more powerful.
3. Building Credit
Capital One’s Spark Classic business credit card is great for business owners who are still building up their personal credit score, since you’ll only need a minimum credit score of 550 to apply—one of the lowest minimum credit card requirements you’ll find on a major credit card. Plus, you’ll get 1% cash back on all your spend, so you can earn while you build that credit score.
4. Cash Back
When you use a cash back card, you’re getting two financial solutions in one: a flexible line of credit, and the opportunity to receive cash back with every transaction. Check out Bank of America® Business Advantage Cash Rewards Mastercard® for a no-fee cash back card that gives you 3%, 2%, or 1% cash back, depending on where you spend.
What’s the Best Small Business Bank—and How Do You Find One?
If you don’t have time to look into the details of all the best banks for small business owners, here’s your quick list:
Wells Fargo: Wells Fargo stands out for its wide suite of small business banking services and a heavy emphasis on small business lending. With five types of small business loans and four low-cost business checking accounts, you’re bound to find the financial services you need at Wells Fargo.
Chase: Chase has a solid array of financial solutions for small business owners. They have strong small business lending options, inexpensive checking accounts, and stellar business credit cards.
Capital One: Capital One is fully devoted to small business owners—they even offer lower rates on small business loans to borrowers with existing relationships with the bank. Capital One is also a great bank for businesses that have a high number of monthly transactions and cash deposits, since it offers unlimited transactions and a high number of cash deposits. Plus, they have some of the simplest business checking and savings accounts on the market.
Bank of America: Bank of America offers a strong small business lending program and arguably the lowest-cost small business checking accounts, with the most ways to waive monthly account fees.
How to Find the Best Bank for Your Small Business
No two businesses are alike, so every business owner will want different things from the bank they choose to work with. But when you’re on the hunt for the best small business bank, every small business owner should keep these issues top of mind:
- Small business lending capacity
- Lowest rates on business bank accounts
- Extra banking features and services, such as online banking
The 4 Best Banks for Small Business in 2018
1. Wells Fargo
Wells Fargo has about$2 trillion in assets, making it the third-largest bank based on total deposits. Despite that huge number, Wells Fargo doesn’t just think big picture: they’re also very focused on small businesses. Here’s why Wells Fargo makes the list:
Wells Fargo Small Business Lending
We’re willing to bet that, at some point in your small business’s lifetime, you’ll need to take out a small business loan to finance its growth. And when that time comes, you’ll be glad you have an established relationship with a bank, so you can take advantage of bank loans’ excellent terms.
Unlike most traditional banks, Wells Fargo offers more than justmedium-term loans andlines of credit. They also offer short-term loans,SBA loans, andequipment financing, making its lending program incredibly flexible for small business owners.
Depending on the type of loan you’re going for with Wells Fargo, your small business can secure anywhere from $10,000 to $100,000 in financing, at a starting interest rate of 6.75%. And because you’ll already have a business account open with the bank, yourbusiness loan application for any of the Wells Fargo small business loans will be fast and easy.
Here’s why we think Wells Fargo lending really stands out: It’s the most active SBA lenderin the United States. Just take a look atthe numbers: In 2016, Wells Fargo issued 6,587 loans from the SBA 7(a) loan program—lending a total of $1,363,161,100 to small businesses.
So, if you find yourself wanting an SBA loan down the line, you’ll be happy to have a bank account with Wells Fargo—aka “American’s leading small business lender”—in place.
Wells Fargo Small Business Checking Accounts
There are four different Wells Fargo business checking accounts, which vary according to your business’s size, needs, and banking capacities: Business Choice Checking, Platinum Business Checking, Simple Business Checking, and Analyzed Business Checking.
The business checking account you choose to use will depend on what kind of small business you run and your needs. But let’s run through the details of Wells Fargo’s most popular and versatile small business checking account: Business Choice Checking.
Wells Fargo Business Choice Checking includes:
- 200 transactions per month
- $7,500 in cash deposits per month
- Text and mobile banking
The Business Choice Checking account is a particularly good fit for small businesses that deal largely in cash, because you can make cash deposits of up to $7,500 a month with no extra charge. (That’s almost twice the amount other big banks will give you!) Once you’ve hit the $7,500 limit, there’s a charge of 30 cents for every extra $100 in cash deposits.
Extra Banking Features at Wells Fargo
Wells Fargo offers robust lending and checking accounts for small business owners. But you can also take advantage of the bank’s additional features, like:
- Full-service payroll solutions, employee benefits, human resources, and tax programs
- A variety of merchant services and new payment technologies to run your business more efficiently
- Business credit cards
- Wells Fargo small business insurance coverage to protect your business, assets, and employees
- Manage your account online with Wells Fargo online banking. Wells Fargo offers a variety of online tools that can help you keep on top of your business expenses, deposits, and cash flow.
Wells Fargo also allows you to integrate your QuickBooks accounting software so you can easily and safely maintain all your financials online. But if you prefer to do your banking in person, you can visit one of Wells Fargo’s 6,000 locations nationwide.
The Bottom Line on Banking with Wells Fargo
Across the board, Wells Fargo is particularly small business-friendly. It’s an especially good option for small business owners who are looking for a strong lending program from their bank. As an account-holder with Wells Fargo, you can easily apply to lots of different loan products with low rates.
2. Chase Bank
With $2.39 trillion in assets, Chase has the biggest banking presence in the United States. In fact, Chase serves almost half of all American households. But Chase isn’t only focused on the consumer—it also has a significant small business banking program. Here’s why Chase bank might be the best bank for your small business.
Chase Small Business Lending
Chase offers a variety of loan options for small business owners, like term loans, lines of credit, SBA loans, commercial real estate loans, and equipment financing. While Chase is starting to offer morealternative lending products, it’s best known for those traditional small business loans.
And, for qualified borrowers, Chase small business loans can fetch huge amounts of capital. With a Chase line of credit, you can get as little as $10,000, or as much as $500,000 for your small business. And if you want an SBA loan, you have three options: A classic SBA 7(a) loan, an SBA Express term loan, or an SBA 504 loan.
Chase Small Business Checking Accounts
With its three Chase business checking accounts—Total Business Checking, Performance Business Checking, and Platinum Business Checking—Chase can easily meet your business’s checking needs.
Each account is designed for the different stages in a business’s lifetime. The one that’s best suited for small businesses, though, is probably the Chase Total Business Checking account.
Some fundamental features of the Chase Total Business Checking account include:
- A monthly service fee of $10 when you enroll in Paperless Statements (or $12 for paper statements)
- Service fee can be waived if you maintain a $1,500 minimum daily balance in your account
- 200 free transactions per month
- You can deposit $7,500 in cash each month without a fee.
Extra Banking Features at Chase
If Chase’s established small business lending program and business checking accounts aren’t reason enough to sign up for account, here are some other advantages to consider:
- Some of the best business credit cards on the market
- Both human resources and payroll programs for businesses of any size. With the full-service payroll program, you can manage your payroll (and payroll tax filing) completely online
- Access to a merchant services account that can make your checkout process as streamlined as possible
- A Mobile Banking system that’s easily accessible from any mobile device. One of the best features of Chase Mobile Banking is QuickDeposit, where users can scan and deposit checks electronically without visiting a branch
- 5,300 branches and 15,500 ATMs countrywide
- When you sign up for Chase’s small business banking, you’ll be given access to free business debit cards for you and your employees.
The Bottom Line on Banking with Chase
Your small business will absolutely benefit from Chase’s well-established lending program and several low-cost business checking accounts. But we think Chase really shines with theirsmall business credit card. In particular, Chase offers some of the most substantial cash back and rewards points earnings on business credit cards.
3. Capital One
While Capital One has substantial consumer and commercial banking programs, their comprehensive suite of financing solutions proves that they’re equally devoted to small business owners.
Capital One Small Business Lending
Capital One wants to be a partner for your small business, not just your bank. When you need to grow your business and smooth out your cash flow along the way, Capital One has a few different loan products for you to consider.
With Capital One, you could take out a working capital line of credit, equipment or vehicle loan, business installment loan, or SBA loan. With a wide variety of loan products available, they’re sure to meet any financing need that comes up as your business grows.
Capital One truly prioritizes your banking relationship. If you have an established Capital One business account and apply for a loan with the bank, you might qualify for what Capital One calls “relationship-based”loan rates. Simply put, Capital One might give you a lower-cost loan if you already have an established relationship with the bank.
Capital One Small Business Checking Accounts
Capital One offers a straightforward small business checking account system. You have two options to choose from: the Spark Business Basic Checking and the Spark Business Unlimited Checking.
Here’s what you can expect with a Spark Business Basic Checking account:
- Unlimited transactions each month
- Deposit up to $5,000 in cash each month with no extra fee
- $15 monthly service fee, waived if you maintain the minimum 30- or 90-day average monthly balance of $2,000, or, if you have two other Capital One products open
- Free business debit card, online bill pay, and online and mobile checking
It’s hard to find a business checking account that has unlimited transactions and a high number of free cash deposits. So, if you run a business that has a high number of monthly transactions and cash deposits, banking with Capital One is a smart choice.
Their Spark Business Savings Account is a stellar choice for a first savings account for many businesses, too, offering free business savings that you can set up entirely online. That’s a feature that’s rare to find.
Extra Banking Features at Capital One
When you sign up for a business account with Capital One, you’ll find that their Spark Business program has a lot to offer. Here are some of the features you can take advantage of:
- Capital One has a pretty great array of business credit cards, and they’re easy to sign up for if you already have a business account open.
- If you bank with Capital One, you can take advantage of their merchant service program called Spark Pay. Spark Pay is an innovative payment solution that accepts and processes payments from any payment terminal—allowing you to sync multiple devices and users under one merchant account.
- Spark Business has a comprehensive online banking program, so you can do all your banking online
- If you use Capital One’s online banking, you’ll have access to different cash flow management tools that can help you analyze and control your business’s cash flow
The Bottom Line on Banking with Capital One
With a strong lending program and low-cost business checking accounts, Capital One is one of the best banks for small business. But Capital One really sets itself apart by being totally devoted to small businesses. No two small businesses are alike, and Capital One recognizes that by tailoring their Spark Business program to meet various banking needs across variousindustries.
But here’s where Capital One really shines: When you bank with Capital One, you’ll have access to Spark Business IQ—a program designed to help entrepreneurs manage their business’s operations, finances, and cash flow. You can tap into Spark Business IQ to access valuable guides and share ideas on how to grow your business.
4. Bank of America
In its 200 year history, Bank of America has supported more than3 million small business owners with easy-to-use banking products and services. With that much influence, Bank of America might just be the best bank for small business. Here’s why it could be a good fit for your small business.
Bank of America Small Business Lending
You won’t have to worry about a lack of small business lending capacity with Bank of America: The bank secured almost$10.7 billion in new credit to small business owners in 2015.
Bank of America offers traditional bank financing, likesecured business term loans and lines of credit, along with commercial real estate loans, equipment and vehicle financing, and SBA loans. And, as with any small business loans from major banks, you can get long-term financing at a low rate.
In particular, you’ll definitely want to check out Bank of America if you run a healthcare business, since the bank offers tailored financing solutions specifically for that industry.
Bank of America Small Business Checking Accounts
Bank of America has two solid business checking account options for small business owners: the Business Fundamentals account and the Business Advantage account.
Here are some major features of theBusiness FundamentalsChecking account, which offers all the essentials your small business needs:
- $18 monthly fee that can be waived if:
- You charge at least $250 per month on a business debit or credit card
- Maintain an average monthly balance above $5,000
- Have a combined average of linked Bank of America accounts of $15,000, or
- Keep a minimum daily balance of $3,000.
- Free cash deposits, up to $10,000 per month
- Free mobile and online banking
- Business and employee debit cards
If your small business mainly deals in cash, you’ll definitely want to consider a Bank of America business account—of the four best small business banks on this list, Bank of America charges the lowest fees on cash deposits.
Extra Banking Features at Bank of America
When you sign up for a small business account with Bank of America, you can take advantage of the bank’s additional features and services, like:
- An award-winning online andmobile banking service
- Payroll and express tax services with Intuit
The Bottom Line on Banking With Bank of America
As far as the best bank for small business goes, Bank of America is a tried-and-true banking option, with a solid lending program and intuitive checking accounts. And if you want to be absolutely sure that you’ll waive a checking account monthly fee, Bank of America is probably your best bet, since it offers the most ways to waive that extra charge.
Finding the Best Small Business Bank
At last count, there were 4,398 commercial banks in the United States. That’s a lot of banks to sort through to find the one that works for your small business. To make things a bit simpler, we narrowed down that massive list to these four best banks for small business in 2018:
- Wells Fargo
- Capital One
- Bank of America
Whether you opt for one of these four banks or another institution, your best option depends on what you need for your small business. To find the perfect fit, you’ll have to ask yourself a few questions:
- Will your small business need financing in the future?
- How much cash flow will you have moving in and out of your bank account on a monthly basis?
- Do you prefer to bank in person, or do you want mobile and online capabilities?
And when you’re answering these questions, be sure to have both your business’s current situation and future goals in mind. If you stay realistic and upfront with your banking needs, you’ll know exactly how to sort through the fine print and find exactly the small business bank you need.
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