4 Essential Banking Services Every Business Needs
91 percent of small businesses use a checking account. This demonstrates the importance of business banking services.
However, if youâ€™re not very familiar with what a bank can do for your business, or youâ€™re a new entrepreneur looking to open a business bank account, you might think that a bankâ€™s only role is to take your deposits and give the money to you when you need it.
Thereâ€™s much more a bank can do to support your business. Read on for a list of business banking services you can get.
1) Electronic Payments Processing
A few decades ago, business owners had no choice but to receive payments for goods and services in hard cash. It was their responsibility to physically go to the bank and deposit the money into their business accounts.
Times have changed. Today, businesses offer multiple payment options. Consumers can pay via their debit or credit card. Those shopping online can pay through PayPal or any other digital wallet.
Most banks offer electronic payments processing, a service that enables merchants like your business to accept various electronic forms of payment. To take advantage of this service, youâ€™ll need to set up a merchant account with your preferred bank.
2) Credit Services
Over 50 percent of small businesses applied for a business loan or line of credit in 2021.
As a small business owner, you know the importance of having access to adequate capital. Unfortunately, this isnâ€™t often the case. Many businesses often need to find ways to raise capital from external sources, including banks.
Banks offer a wide range of credit services, from term loans to equipment financing, business credit cards, and commercial mortgages. The government, through the Small Business Administration, also partners with banks to offer SBA loans and implement other special loan programs.
3) Investment Services
As your small business grows and turns bigger profits, your cash reserves will increase. Of course, you can let this money sit in your business’s checking or savings account. You can also invest some of the money on behalf of the business.
As part of business banking, some banks offer investment services to businesses. They can advise you on how to best invest the money and even acts as investment brokers, especially if you choose to invest in the stock market.
4) Payroll Processing
If your business has employees, payroll processing is one of your most important functions.
Instead of taking the DIY approach or hiring an in-house payroll specialist, you can make use of payroll processing services offered by banks. The bank will take all payroll-related tasks off your hands and work to ensure your employees are paid their accurate dues on time and in compliance with the relevant laws.
Make the Most of Business Banking Services
In business, treat banks as your financial partners. As weâ€™ve demonstrated, they offer a variety of services business banking services that will help your business thrive financially. Make the most of these services.
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