Account Basics

• Some small business accounts are "free," meaning there is no monthly account charge, but the accounts charge fees for various services. However, some accounts that have a monthly charge may offer more services for less cost. A small business owner should consider what types of banking services he will need and choose accounts based on these needs. For example, a business owner who needs to write large numbers of checks should choose accounts that charge the least for this service.
  
  

Large Bank Advantages

• Larger banks have offices spread across a state, region to the entire country. Large banks may be ideal for small business owners whose business requires frequent travel, as the owner will have more options of bank branches to visit to complete transactions. While owners can complete many transactions online, personal visits to a bank may be required for others. These banks generally provide a wider range of services to small business owners than smaller banks and credit unions do. For example, many larger banks may be able to handle payroll, investments or other needed services.
  
  

Small Bank Advantages

• Small banks generally provide more personal service and attention to account holders. Locally based banks and credit unions may be an attractive option for new small businesses that may need loans in the future. By opening a small business account with one of these financial institutions, the owner can build a business relationship with the institution and a personal relationship with the institution's personnel. This relationship can help the owner to arrange loans that larger banks may not approve.
  
  

Other Considerations

• Regardless of everything else, the convenience of a bank may make a big difference to a busy small business owner. An owner may find that it is easier to deal with the bank down the street than travel farther to save a little money. Although it may complicate things, owners can also have multiple accounts with different banks. By doing this, the business can access the different services available from both larger and smaller banks.