There are several different types of business banking products available. Typically, these products are offered at preferential rates for existing customers. In addition to the basic products, commercial banks also offer financial guidance and experience in the industry. A representative from a bank can help you determine which banking products would be best for your business.
The business checking account is a basic business banking product that allows businesses to make deposits and withdrawals from their accounts. These accounts allow businesses to make payments to vendors and make purchases. They can also process ACH payments. These types of products are particularly essential for businesses that make regular payments to vendors. Business checking accounts typically have a fee associated with them, though some digital banks offer fee-free accounts.
Business banking products are generally similar to those offered to individuals. However, the interest rates and other terms for business banking products may differ from those for personal accounts. They can also be different in size and industry. Generally, retail banks offer business banking products. These banks are separate from investment banks, which usually serve institutional investors.
Business credit cards are another useful product for small businesses. Besides being convenient, they also allow small business owners to earn rewards and points for purchases. Many of these cards also let them maintain separate business and personal spending histories.