The Best Small Business Online Banks for 2023: The Ultimate Guide
Small businesses are the backbone of the global economy, and they require financial institutions that can cater to their unique needs. The rise of online banking has made it easier for small businesses to manage their finances from anywhere in the world. In this ultimate guide, we will explore the best small business online banks for 2023, their features, and how they compare to traditional banks.
What are Small Business Online Banks?
Small business online banks are financial institutions that offer digital banking services tailored to the needs of small businesses. They provide features such as online account management, mobile banking, online invoicing, and expense tracking. Unlike traditional banks, small business online banks typically offer low or no fees, higher interest rates, and better customer support.
Benefits of Small Business Online Banks
Small business online banks have become increasingly popular in recent years, and for good reason. There are numerous benefits to using an online bank for your small business banking needs. Here are some of the top advantages:
1. Lower Fees
One of the most significant benefits of using a small business online bank is that they typically have lower fees than traditional banks. This is because online banks have lower overhead costs, such as rent for physical branches, and can pass those savings on to their customers. With lower fees, small business owners can save money on things like monthly maintenance fees, overdraft fees, and ATM fees.
2. Higher Interest Rates
Another advantage of small business online banks is that they often offer higher interest rates on savings accounts and CDs than traditional banks. This means that small businesses can earn more money on their deposits, which can help them grow their business over time.
3. Better Customer Support
Small business online banks typically offer better customer support than traditional banks. This is because they prioritize customer service as a way to differentiate themselves from their competitors. Online banks often have dedicated customer service teams that are available to assist customers via phone, email, or chat 24/7. This can be especially helpful for small business owners who may need assistance outside of traditional business hours.
4. Convenient Online Account Management
With a small business online bank, you can manage your accounts from anywhere with an internet connection. This means that you can check your balances, transfer funds, pay bills, and even deposit checks without ever having to visit a physical branch. This convenience can save small business owners valuable time that can be better spent on growing their business.
5. Free ATM Access
Many small business online banks offer free ATM access to their customers. While traditional banks often charge fees for using ATMs that are not part of their network, online banks may reimburse customers for any fees they incur when using an out-of-network ATM. This can be especially beneficial for small business owners who need to access cash frequently.
Overall, small business online banks offer many advantages over traditional banks. With lower fees, higher interest rates, better customer support, convenient online account management, and free ATM access, it’s no wonder why more and more small business owners are choosing to use online banks for their banking needs.
Top Small Business Online Banks for 2023
Here are the top small business online banks for 2023:
1. Novo
Novo is an online bank that offers free business checking accounts with no minimum balance requirements or monthly fees. It also provides features such as mobile check deposit, free ATM access, and integrations with popular accounting software.
2. BlueVine
BlueVine is an online bank that offers free business checking accounts with no monthly fees. It also provides features such as mobile check deposit, free ATM access, and invoicing and payment processing services.
3. Azlo
Azlo is an online bank that offers free business checking accounts with no monthly fees. It also provides features such as mobile check deposit, free ATM access, and invoicing and payment processing services.
4. Chime
Chime is an online bank that offers free business checking accounts with no monthly fees. It also provides features such as mobile check deposit, free ATM access, and integrations with popular accounting software.
How Small Business Online Banks Compare to Traditional Banks
Small business online banks have several advantages over traditional banks, including:
1. Lower Fees
Small business online banks typically have lower fees than traditional banks. This can save businesses thousands of dollars in fees each year.
2. Higher Interest Rates
Small business online banks offer higher interest rates on deposits, which can help businesses earn more money on their savings.
3. Convenience
Small business owners can manage their finances anytime, anywhere with online banking. This saves time and eliminates the need to visit a physical bank branch.
4. Better Customer Support
Small business online banks typically offer better customer support than traditional banks. They provide support via phone, email, and chat, making it easier for businesses to get the help they need
5. Digital Features
Small business online banks offer advanced digital features that traditional banks may not have. This includes online invoicing, expense tracking, and integration with popular accounting software.
FAQs about Small Business Online Banks
1. What is the difference between a traditional bank and a small business online bank?
Small business online banks typically offer lower fees, higher interest rates, and better customer support than traditional banks. They also provide advanced digital features such as online invoicing and expense tracking.
2. What are some common features of small business online banks?
Common features of small business online banks include online account management, mobile banking, free ATM access, online invoicing, and expense tracking.
3. Do small business online banks offer loans?
Yes, some small business online banks offer loans, including lines of credit and term loans.
4. Are small business online banks safe?
Yes, small business online banks are safe. They are regulated by the same government agencies as traditional banks and use the same security measures to protect customer data.
5. Can small businesses open accounts at multiple online banks?
Yes, small businesses can open accounts at multiple online banks. However, it is important to keep track of fees and make sure the benefits of having multiple accounts outweigh the costs.
Conclusion
Small business online banks offer many benefits, including lower fees, higher interest rates, and better customer support. They also provide advanced digital features that can help businesses manage their finances more efficiently. If you are a small business owner, consider switching to an online bank to take advantage of these benefits and grow your business in 2023.