If you are a small business owner with a business checking account, there are many reasons why you might want to consider switching to a new account, possibly at another bank. Perhaps your needs are changing, your business structure is evolving, or your bank is not providing the service you need or deserve. With the ease of applying for a new account online today, switching to a new business checking account is not as difficult or time-consuming as it once was. Taking a little time to make the switch could ultimately save you money and even lighten your workload.
If you think that switching to a new business checking account might benefit your business, here we will examine why you might need to switch, what to consider when switching, and how to make the change as efficiently as possible.
Why switch?
One common reason to switch business checking accounts is growth. If your business is expanding, you might need more capital through loans and/or credit cards. Your current bank might not be meeting your needs, or perhaps you want to pursue loans and credit with better terms than your current bank offers.
Another reason you might need to make a switch is that your business is scaling back. Perhaps you want a business checking account with low or no minimum balance requirements and/or lower fees.
Even if your business is not changing in size or structure, you might feel that your bank is not providing you enough support or you’re not receiving the customer service you deserve. You should consider looking for a bank that specializes in small businesses and provides personalized support—one like Live Oak Bank.
Streamlining your business banking might be another reason to switch your account. Many banks offer a plethora of banking services, such as mobile banking and the ability to connect with accounting software like Quickbooks.
If your current bank requires visits to physical locations to meet with a banker for loans or to conduct other business, you might find that banking with a purely online bank like Live Oak Bank makes accounting more efficient.
Do your research
If you’ve decided that switching your business checking account is the right move, start doing your research. Look for a bank that not only offers good terms when it comes to minimum balances and fees, but one that also offers the ability to move money easily, flexible debit card use, enhanced online banking, and the ability to connect with Quickbooks. You will also want to ensure that your new bank is set up for your future needs.
Ideally, you want a bank that is dedicated to serving small business needs. Live Oak Bank is unique in that it is focused on small businesses and offers dedicated service and personalized support. It is a fully digital bank based in North Carolina. Live Oak Bank does not work on commission so that it can concentrate entirely on its customers.
Whatever bank you choose for your new account, make sure that bank helps you identify which account best suits your needs and gives your business the attention and support you deserve.
Smooth transition
Once you’ve selected the bank, reach out to make sure it’s a good match and double check your eligibility. If so, you’ll next need to get organized to ensure a stress-free transition from your old account to your new one. First, gather all the documents you need for your new business checking account application. These can include business name certificate (if registered), business license, partnership agreement, articles of organization, etc., depending on what type of business you have.
Next, you’ll need to fill out the application by heading to a branch or applying online. If you’re using Live Oak Bank business checking, you won’t need to travel to a location; simply apply online.
Once you’ve been approved and opened your new business checking account, you will need to make your initial deposit of the minimum balance required. At Live Oak Bank, there are no minimum balances required, but preferably, you’ll want to deposit the minimum balance needed to avoid fees.
After you’ve transferred your balance, it’s a good idea to perform some test transactions to make sure everything is running smoothly. Once you’re confident that your new business checking account is established correctly, you will need to ensure that all auto-payments and deposits are redirected to your new account. Be sure to update any accounting and billing software to reflect the new account numbers. Let your clients and employees know of the change in bank accounts.
From there, continue to double check your transactions, and when you are confident that your new account is operating smoothly, you can close your old account. Be sure that all checks written from that account have cleared before doing so.
In summation, here’s a simplified checklist for switching your business checking account to minimize business disruption:
- Weigh pros and cons
- Do your research
- Select the right bank for your business
- Gather your business information and documents
- Apply for your new account
- Set up your new account and make initial deposit
- Perform test transactions
- Direct all auto-payments and deposits
- Update billing and accounting software
- Inform clients and employees of the banking change
- Double check all transactions
- Close your former account
