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Small business banking requires a separate business account. Mixing funds within your personal account with your new business can be a recipe for disaster. While it may reduce costs and bank fees you will be doing more harm than good for yourself in the near future.
Small Business Banking
Because starting a new business can be risky, many people suggest that it is best to have a full time income when beginning your business part time. However, no matter how many hours you put into your new business, you must always treat it like a business. Separate banking for a small business can be very beneficial to you, when your customers are writing checks out to you seeing the business name as opposed to your own personal name is more professional. Also, tax audits and deductions will be much less of a headache when you have a separate business account.
When opening your new small business banking account don’t rush, look around for the best deal and find the account that fits your needs. Remember, the advantages of your business will always outweigh the costs of a business account so make sure you get one that works for you. The earlier you open your business account the more assistance with required financing you will have in the future.
Merchant Services
Bank merchant services include enabling a business to accept payment of their customer’s credit or debit card. When looking for the right type of small business account, getting one that offers merchant services will prove to be very beneficial to you.
Qualifying
When trying to qualify for small business bank loans there are several things to keep in mind. Regardless of what your business entails sometimes a little extra financing can go a long way for the growth of your business. Keep in mind, a small business loan will be offered at a lower interest rate than a line of credit. Though obtaining a commercial loan isn’t always easy, the better you represent your company the more seriously your prospective lender will take you. Before you even get started you should have monthly cash flow projections, tax returns, personal financial statements and perhaps most important, a well equipped business plan.
You will need to give a detailed arrangement of how you are planning to use the loan. Start-up companies will usually have to contribute at least twenty five percent of the costs. The requirements of the contribution may vary, depending on the stability of your business and the collateral value that is used to secure the loan. One of the ways to boost your likelihood of securing a loan is providing additional collateral. Your safest bet is to begin with the bank that you have a present relationship with.
