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Best Banks For Small Business In 2024

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Choosing the right bank is an important decision for any small business owner. You need a bank that can provide the products, services, and support that are tailored to meet the unique needs of a growing company. In 2024, small businesses have more options than ever when it comes to banking.

In this blog post, we will explore the top banks for small businesses this year based on factors like fees, interest rates, technology solutions, and customer service. Whether you’re just starting out or looking to switch banks, read on to find the best fit for your small business.

Top Banks for Small Businesses

Axos Bank

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Axos Bank has become one of the most popular online banks for small business banking needs in recent years. An online-only bank, Axos provides digital banking solutions catered to small business owners.

Axos offers business checking and savings accounts with no monthly maintenance fees or minimum balance requirements. You also get reimbursements for ATM fees charged by other banks. Axos pays above-average interest rates on both checking and savings accounts.

The bank also provides easy online applications for SBA loans and business credit cards with rewards programs. With their fast digital loan approvals, Axos makes getting financing quick and convenient.

Other benefits include digital invoicing, mobile check deposit, and intuitive online account management. You get 24/7 access and support over the phone for personalized service when you need it. If you want a full-service online bank tailored for today’s small business, Axos Bank delivers.

Bank of America

As one of the “big banks”, Bank of America offers the convenience of thousands of branches and ATMs across the country. For small businesses, they provide customizable accounts, merchant services, and credit cards packed with rewards.

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Bank of America’s business checking accounts come with no monthly fees if you maintain a minimum balance or enroll in their Preferred Rewards program. Their small business savings options also have competitive interest rates with no monthly fees.

Small business owners can benefit from Bank of America’s wide range of lending solutions, including SBA loans, lines of credit, and credit cards. Approval decisions are usually rapid for pre-qualified applicants. They also have Merchant Services that come with contactless payment solutions ideal for retail businesses.

With advanced digital banking solutions for account management and robust mobile apps with deposit capabilities, Bank of America combines accessibility and convenience. Although their fees can be high if you don’t qualify to waive them, their account features and lending options make them one of the best traditional bank picks for small enterprises.

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Capital One

Capital One is another competitive choice for small business banking, with customizable checking and savings products. Capital One allows you to pair personal and business accounts in one place while earning interest on your balances.

Capital One’s business checking accounts require either a minimum balance or monthly transactions to avoid the monthly fee. Still, the fee is modest at $15 and easy to bypass. These accounts include unlimited digital transactions and domestic wires. You also get some of the best rates available for their business money market and savings accounts.

Capital One offers several business credit cards to match specific spending needs. Each card packs plenty of standard benefits, including contactless payments on mobile wallets. Credit lines for business cards start at $500 for those just starting.

This bank focuses heavily on technology, providing convenient mobile apps and easy-to-use online dashboards for all your banking. They have over 400 branches across the country to complement their digital solutions with in-person service when necessary. Overall, Capital One brings an accessible banking experience with attractive yield opportunities.

Local/Community Banks

Supporting community banks keeps funds circulating in local economies while providing personalized service. These smaller banks can approve loans faster than national chains and have fewer underwriting restrictions.

Local banks build relationships within their communities. This allows them to understand the unique needs of neighborhood businesses. Instead of just seeing a score, they view character, reputation, and growth potential.

Developing rapport and trust with local bankers helps when you apply for lending. This makes getting funding quicker and easier, especially for startups. Community banks also offer lower fees and higher interest rates on their deposit accounts. And because they employ local residents, community banks have an incentive to fuel area businesses through loans and other banking products.

Before committing, research a few local/community banks’ offerings thoroughly. Look at interest rates, fees, and account options to determine the best fit. One downside of local banks is that they typically have fewer branches, so accessibility may be less than national competitors. But for personalized service from bankers invested in community growth, local banks are worth consideration.

How to Choose the Best Bank for Your Small Business

With numerous options now available, selecting the right bank for your small business can feel overwhelming. Here are a few tips on finding one that meets your needs:

Assess your banking habits

Do you conduct most transactions digitally or prefer in-person service? Consider remote deposit availability, transfer limits, mobile apps, online dashboards, branch/ATM access or lack thereof with online-only banks.

Review account features

Compare monthly fees, minimum balance requirements, caps on transactions, interest rates, etc. Make sure the account(s) align with your existing and future banking needs.

Compare credit and lending products

From lines of credit to SBA loans to credit cards, look at interest rates, repayment terms, credit requirements, and approval wait times among banks.

Evaluate add-on features

Additional business services like payroll, invoicing, merchant services and even tax assistance could sway your decision if offered. Not all banks provide these.

Research customer service and reviews

Be sure that the bank has quality support channels and proven responsiveness to customer issues should any arise with your accounts.

Making a checklist of your must-haves and comparing options side-by-side can help narrow your choices. Prioritize features that best accommodate your banking activity today and anticipated growth tomorrow.

The Bottom Line

Finding the right bank for your small business doesn’t have to be an overwhelming process. Banks like Axos, Bank of America, and Capital One continue leading the way with robust digital solutions, accessible lending, and customizable accounts to meet various business needs. Don’t overlook community banks either for their personalized approach and eagerness to support local enterprises.

As the banking landscape expands with more choices, small business owners now have greater power to choose accounts and services on their terms. Define your priorities, compare offerings thoughtfully, and recognize that you can switch banks later as your needs evolve. Align yourself now with a bank that can most benefit your company’s financial growth and success in the years ahead.

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