![How- to Choose the Right Business Bank Account [BA QA] - podcast episode cover](https://assets.metacast.app/images/episode/artwork/x4TwRI8y)
What do you look for when deciding who to open and account with? What are red flags that let me know who not to bank with.
Some of the things you want to think about. You want to make sure as a business owner that your money is separated from your personal income. You don't want to be merging them together, even if you feel like you're not making too much money right now. I think it's critical to do it now.
If you are somebody whose business deals with a lot of cash transactions, you probably want to have a physical bank branch location that you can go to and you can deposit those cash payments rather than having to put it in an envelope and mail it to a digital bank. I wouldn't personally feel comfortable doing that.
Hey, hey va fan, welcome to the BAQA. I feel like it's been a minute since we've had a straight up BAQA. I have my lovely co hosts who have stuck around to help me answer this question from y'all. I have yan Elli Espinal, the director of financial Education for next Gen PF Next Gen Personal Finance and also mis Be Helpful, which is her personal brand, and she is the author of the personal finance book Mind You Money. Hey, Nelly, what's up?
Glad to be back, and.
We have Mark Russell of Better Wallet Fame. Hello, Mark, Welcome again to the BAQA. Now I think by Mark aka say it no. If you say Chris, then it's gonna like do the whole thing and I'm gonna mess it up again. You guys couldn't be more different, so I'm sorry it was a Freudian slip. All right, Mark, not Chris. Let's get into the question for today. Oh we had a question from Amber, who sent us an email.
So old fashioned either way. If you want to submit your questions personal finance, business related relationship, will take them all. You can email me Brandambition Podcast at gmail dot com. You can also contact me on ig at Brand Ambition Podcast on the Gram. Amber wants to know Mark and ya Nellie. She says, I'm not sure if you've covered this already, but I was listening to a recent episode about credit cards and y'all touched on credit cards for
business a little bit. My question is what about business bank accounts. I'm planning on starting my own business soon, but I'm not sure where to open a business account or what benefits I should be looking for in a bank what do you look for when deciding who to open an account with? What are red flags that let me know who not to bank with? Thank you for everything. You're amazing love this question. Thank you Amber. That's a great question.
It really is. Let's set up these business bank accounts. I love that.
Yeah, I'm curious to know where you guys bank.
Yeah, so I'll start. So I mentioned P and C. I've been with P and C since I was seventeen, and naturally when I was looking to open up a business bank account, I use P and C for that. In terms of what I was looking for was an established relationship. Obviously, security is really important, the intuitive design on the website, having an app, all the things I
think all that's really important. The ability to move money from the business bank account to the personal account, move from the check into this savings, right, I have to be able to do that pretty easily. In terms of companies that I personally wouldn't use, do you have the well as Fargos of the world, for all the reasons that we all know and don't love Bank of America, I wouldn't use them either. Personally. These are all personal I just never but for me, the boxes that would
want to check is. I want to have an established relationship. They know who I am, they I've been working with them for a while. I want to make sure they have an app. Security is really important. Ability to connect. I literally log into my account. I have my personal account and I have my multiple business accounts. So the ability to be able to set up all those accounts, because I even have one for taxes as well, so
all that's extremely important. I probably wouldn't, in my opinion, go with a credit union because I think credit unis are Credit unions are great for getting out loans and getting low interest loans and all that, but I don't think they have the security or the technology that I feel comfortable with with my business information. And for anyone who's like, why would I get a business bank account, some of the things you want to think about. You want to make sure as a business owner that your
money is separated from your personal income. You don't want to be merging them together. And even if you feel like you're not making too much money right now, I think it's critical to do it now because eventually you will. Right I'm a manifested for you, I'm sure manifesting for yourself, and the worst thing you can ever possibly do is try to figure out, okay, what should be paying taxes on versus what is already text for my nine to five job. So having that separate, having that business bank
account makes your accounting way more easier. And if you're doing your own accounting right now, it will be a headache if you had the two combined, and your accountant will hate if you have an account or a CPA if they are combined. So I would say sooner rather than later, make sure that they are separate, open up an account, and kind of use that checklist to figure out what kind of company you want to go with.
Yeah, I love that, and also think about what kind of business you have amber Because my business is fully digital, it's all online. I never really accept cash payments at all ever, so I don't need to worry about coming to a bank branch with a bunch of cash to deposit. So that's not even something I would consider. Whereas my family has a small business that's a restaurant, actually not so small anymore. They're doing really great with this in
New York. There's a Dominican restaurant in stant Island. If you're ever there. It's called Boy your restaurant and bar excellent Food. It's some of my family members have been growing that business for so long, and it's a cash flow and business's cash.
Have you like a lot of people come in family restaurant.
Yeah, my sister and her husband own it, and they obviously, you know, have a lot of cash coming in and out of the restaurant, right cash. Restaurants are cash heavy businesses. You know, you come in, you buy lunch, pay seven dollars for a plate. You know, you give cash usually. So that is a very different business banking need versus my business banking needs as a digital business more primarily so for me, it was I wanted a digital bank, and I wanted one that would that would have low
fees or no fees at all. Ideally one that would allow me to use the software that I use for my taxes and accounting, which is quick Books.
I wanted it to automatically sink with quick Books.
So I started researching, Okay, what banks, what business banks automatically have automatic sinking with QuickBooks and also allow me to just pull data really easily between them and Blue Vine is the one that came up for me. I've been using blue Vine scent for years now, and like
super easy. I put all my payes in there. So whenever I do business with somebody of ten eighty nine contractor somebody who's editing my videos, somebody who's doing whatever partnerships, I automatically add them into pay send them their payment. Ten ninety nine are really easy in quick books, So in terms of like accounting plus banking, I really love that like synergy between them, and I also so just love the fact that, like the money moves very quickly.
I don't have to wait seven business days for people to get paid or for me to get paid.
So those are things I chose to prioritize.
But again I recognize it as a fully digital business, I don't necessarily have to worry too much about cash. So if you are somebody whose business deals with a lot of cash transactions, you probably want to have a physical bank branch location that you can go to and you can deposit those cash payments. That just makes your life a lot easier, right, rather than having to put it in an envelope and mail it to a digital bank.
I wouldn't personally feel comfortable doing that. So those are some things I would add to Mark's list in terms of like what you want to consider to go shop for a good business bank account, and then also there's suite of products because a business bank account is really just the first step. You might also want to set up a business investment acount. You might also want to set up a solo for one K. You might also want to get a business credit card or get a
business loan like Mark was talking about earlier. Hopefully they don't deny you like PNC was trying to play him, But you can kind of look at, like what are the full suite of offerings for small businesses, and that way you can kind of pick a good one from the get go that has a whole ecosystem of products and services that you might eventually grow into even if you don't need it just yet.
Yeah, And I would say, yeah, it comes down to personal preference because even in that example, like I couldn't imagine going and having like a virtual bank, because there are times where I have to give them a check for a large amount that I can't go in to pause in my ATM, or if I have to send a wire for a higher amount, like I don't want to do that over the phone. I wouldn't go and talk to someone and have a personal banker that could
go and do it within a minute. So really it's just a personal preference where I want to go in there. So another item that would put in my checkbox is that I need to have locations that are national. PNC happens to be out at Pittsburgh when I was in Philly. They're all over the place, and they're a little more spread out here in Georgia, but we have three or four locations within ten miles, so I can just drive over there talk to my personal banker. They could take
care of everything for me. I couldn't imagine having someone who's like virtual. But that comes down to personal preference and then how your business is structured.
Yep, for sure, what what you need to go in person for transfer.
Wire transfers and bigger checks over over ten thousand.
Yeah, he make a money like that. It's gonna say, I'm definitely deposited like a big like a deposited checks. But again, like you know, when I think when I first joined iHeart, actually my first quarterly payment was a check and I was like, we I'm about to do what it is why are we doing checks? Because every everyone else just wires that are you know, sends it
directly and happens. Yeah, it sends me. Really have to go take the P and C. I won't show you guys because you guys would take the numbers, but uh I would love. Maybe I just need to be getting more checks. Maybe if I was on that mark better while at level, I should get more checks. They come work for me, you know what. That's what I wanted to ask you. Actually, Marcus like has no no, no, no. Would you say work with you? Because never he.
Said work for you?
Work for That's what you miss girl, You missed that job.
Would you give me? What? What would you? What would I do for you? Chief? Humble? Humble, officer in chief, Keep you humble, Remind you when you say something.
It's a unique skill set. So you got to think about that one.
Yeah, I'll need your resume.
My people will talk to her. Thanks. Hey, ba fam, we got to take a quick break, pay some bills, and we'll be right back. All right, ba fam, We're back. I feel like I'm in an episode of Fear Factor. I'm like trapped in this little office. My kid has a dirty diaper. I have to change it, and I just like there's no ventilation and I have to get out of here. But I'm committed to the bitch. No, it's a whole thing. I gotta go upstairs. Diapers upstairs.
Now he's two. Now, it's not an easy diaper change situation. It's going to be fighting. I'll need a hose homes. Yeah, he's fine. No, but I did want about moving to Atlanta because if you listen to the episode this week, y'all at the Brown Table, I mentioned I want to move back to Atlanta, and I am. I feel like my business would only thrive with me being in Atlanta. I just look, there's so many more opportunities or so many great brands that want to that already work with
Atlanta creators and creatives. And yeah, I just I just feel like this is the kind of place where a brand like Brown Ambition and Mandy Money we could thrive.
Yeah, it's powerful. I mean any conference I go to, I end up meeting people who either become business partners or clients because you have a lot of people who are inspiring to do, aspiring to do the things that you're currently doing, or they are trying to partner because
I mean, we really believe in collaboration for competition. A lot of my friends are financial creators that are in the different niches within personal finance, and we're always constantly trying to find ways that we could boost each other's businesses. And a lot of them.
Look like us.
So it's way more powerful than when I was in Philly, where I fel like there were only so many financial creators, and frankly even when I would go up to New York. So I think if you're an established business coming into Atlanta,
it's a great thing. But if you're trying to get into entrepreneurship and you're not really sure what your niche is going to be, it could be a distraction and you could find yourself losing a lot of money pretty quickly, because there's a lot of people who, unfortunately try to exploit folks that are trying to get rich quickly here
in Atlanta. But if you know the direction that you're going in, you know what conferences you need to be at, what groups you need to be a part of, who you need to talk to, and folks are more willing to introduce everyone to whoever referrals are big. Everyone that is on my team that's from Atlanta was a referral from someone else, or I just happened to be at a conference. I'm like, you're great at videos, can we
like work together? I have something coming up here in a couple of weeks, And they're like, yeah, sure, no problem. So that's a big deal at least for me and for the brand.
Yeah for sure.
Ooh, so when I come, I have an instant plug like you can connect me to.
That's what he's saying.
That's what I heard. That's what I heard, and I do feel like I have Yeah. I mean, just being from here, I have so many friends and it's just just come come on home, Mandy, is what it's saying to me. Hey, ba fam, we got to take a quick break, pay some bills, and we'll be right back. All right, ba fam, We're back my business checking. I also have Bluevine. I like an online only bank. I don't mind the inconvenience of not talking to humans. In fact,
I prefer to not speak to them. But to your point, Mark about financing, though, I do think having a relationship with a local community bank and the best thing about I think you mentioned I was distracted by my kid. I think you mentioned something about how you know you wouldn't necessarily work with a credit union, But there are some local community banks and credit unions that are really like the point of them, or the core of what
they do in communities is support local businesses. So if you're someone who's opening a local business, maybe a brick and mortar business, like, and you're going to be a part of that community, you might find it really beneficial to establish a relationship with the local bank or credit union, and you know they have a vested interest in banks in your community, and they may look more favorably upon you than like a big lender who's like, who are you totally agree?
I'm a part of Like on the personal side, like I have many of credit unions from my alumni association to even where my high school was, where I have that personal connection. If I really need a loan, I can get to them. But from a business standpoint, yeah, it is much tougher to go after these bigger companies that you're just the number in their head, even though that's where it brought them more than seven figures.
It's like right, right, well that's a good thing about online banks though, because I will tell you one of the cool things I have with Bluevine. I have a Bluevine Business line of credit, so I can spend up two one hundred thousand dollars at any given point. It's a pretty low rate, like seven point tenty percent, which I mean is high generally, but like for business, not bad, and I could pay it back monthly if I ever
do borrow from it. So it's it's similar to a credit card and how that works for your personal spending, but it's for the business, and that line of credit is revolving, so like if I pay it back, it's available again onlike a personal loan, which you know, you pay it down and then at zero and then you have to apply for a new loan if you want a new one. So I really liked the Bluevine business
line of credit. And also the fact that they are a digital bank means that they're a lot more friendly and open to digital businesses.
So that's something Yeah, I've never considered. The problem is getting approved for stuff with blue I've never done a line of credit, but I know with my credit card I had no problem yep, opening up. I opened up too. I have two different business bank accounts with them. Yeah.
Yeah, they're great and honestly pretty responsive.
Because the other day I had to I was bringing on a new client doing a partnership with them, and they needed the bank account information. So I sent them a document that had it and they were like, no, no, we need a letter from the bank. So I was like, oh,
so I had to contacte. I literally just sent a quick email in the in the online account and I said, hey, I need a letter, like a verification letter from the bank saying that I have my business bank account here less than twenty hours, like not even the whole day already, girl, I already had it.
In my email.
They sent it to me as a pit of attachment. I was like, oh, look at that boom. So in terms of responsiveness, has been really great, even though you don't really talk to a person, but they still are really responsive.
And look at that. I could have just downloaded it from my account. I didn't know that.
Yeah, you know what, and you could also have you could also have two, Like there's no limit on how.
Many, right, That's so true.
That is so true bank accounts you have.
Even having this conversation, I'm like, maybe I should have this virtual one where the majority of the money won't go through there. But maybe if I create another product or whatever, it might be a separate business, then that could be routed through blue Vine.
So yeah, and to her to Amber's question about like what to look out for, I was the big thing for me or fees. So there's no fees with blue Vine. I'm not paying a I had worked with a big bank before and it was like a five dollars a month fee unless you had a minimum you know, those stupid minimum balance requirements per month. Fees are a big one. And the ability to do to pay people through your account. So I like jan Ellie, I use a lot of contractors and you can set them up as clients in
your portal on Bluevine and pay them. And if there is a fee, it's very nominal. It's like one percent or something. And I feel like PayPal, quick books fees and the fees of sending. So whatever the thing is you do in your business the most, whether you're accepting payments virtually or sending payments virtually, like what is the cost of those fees and how well it integrates with the other platforms that you might use, like Gusto or quick Books yep, things like that. Yeah, and just keep
asking your friends. I mean, we're your friends in your head, but if you have other friends who are business owners, ask them what they use, and then you make the best choice based on what you need and what's right for you.
Yeah, and just quickly look up like what are the best business bake a concert twenty twenty five based on online reviews? Based on things like that. I mean, I chose Bluevine because it can coming up, but there were quite a few other ones, like the MX Business Bank account came up quite a bit in my research, and Capitol One TD Bank like those came up for me too.
I just ultimately went with Blue Vine.
But if you just start doing a little bit of digging, you'll see the same accounts coming up again and again from reputable sources. And then you're like, okay, so, like there's a pattern people really like this account, So that's one that I might want to look into.
All right, y'all, that's gonna wrap up. B a q A let me rue, could you say bye bye? Brown Ambition.
Boundaries.
He's like, I'm going to send you my W nine and then I, yeah, say bye bye. Brown Ambition. Bye bye bye bye. See your next week. Be a fan. Thank you, Chris, you did it again.
No, she's literally is just programmed to say Chris and Andy.
It's so crazy on Ellie, You're right. It's like mar do not bite me. He's a bier. All right, Bye, guys. I'm not going to try to say names again. DA sorry about that, you guys. Bye bye, okay va fam, Thank you so much for listening to this week's show. I want to shout out to our production team, Courtney, our editor, Carla, our fearless leader for idea to launch productions. I want to shout out my assistant Lauda Escalante and
Cameron McNair for helping me put the show together. It is not a one person project, as much as I have tried to make it so these past ten years. I need help, y'all, and thank goodness I've been able to put this team around me to support me on this journey and to y'all be a fam. I love you so so so so much. Please rate, review, subscribe, make sure you're signed up to the newsletter to get
all the latest updates on upcoming episode modes. Our tenth your anniversary celebrations to come, and until next time, talk to you. Soon be a bye.