subject: Benefits Of Business Banking Services In Minnesota [print this page] If you're the owner of a small business or if you're responsible for the financial department of a large corporation, a bank with extensive business banking services is essential. Whether you already have a business banking relationship and are looking for a better one or you are looking to set up a new account, it is important to know what kind of services are available.
A basic Business Checking account is usually a low-cost account that is well suited for small businesses that have a moderate amount of checking activity. Some of the features of this type of account include no required minimum monthly balance, no service charge for up to 200 items each month and no cost for electronic debit, credit or merchant bank card transactions. You may be offered a free Visa check card that can earn you rewards for your purchases and you will be able to handle most of your transactions online with electronic internet banking.
A regular Business Checking account is designed for businesses with a higher amount of monthly transactions than that covered under a basic Business Checking account. There is no minimum balance required and you can offset activity fees based on the average collected balance in your account. If you have sufficient funds in your account, you will not be charged any fees. Otherwise you'll receive a service charge and your account will be debited for the difference between your earned credits and accumulated activity fees. This type of account also comes with a free Visa Check Card.
A Business Money Market account is another good business banking service. Here you can open an account for an initial $1,000 deposit and as long as you maintain that minimum monthly balance there are no service charges. You will earn more interest the higher your balance and you can withdraw money when needed.
A Commercial Preferred Money Market account is for those who want to earn a greater return on their money. You must have at least $25,000 to open an account and you will not be charged a monthly service fee as long as you maintain a minimum daily balance of $25,000.
Certificates of Deposit are another financial instrument that can be useful to a business. CD's are a good place to park your money if you are planning for future expansion or other large business expenditures. The FDIC insures a Certificate of Deposit up to $250,000 per account. You must hold your money for a specified period of time (typically anywhere from 90 days to 5 years) or you may be subject to an early withdrawal penalty.
There are a number of different lending products available as part of a bank's Business Banking Services. Commercial Real Estate and Construction loans will help you build or expand your business location. You can also apply for a business Line of Credit, which is good for short-term liquidity or seasonal financing needs. If you find you are having cash flow problems, Receivables Financing may be the solution. The Bank will purchase and service your receivables and you'll gain needed working capital.
Now that you know some of the benefits of using Business Banking Services, it's time to open an account.
