You've taken the first step. Or steps. Your small business is opened and you think you've finally gotten the paperwork completed. IRS docs, filing with the state and local registration...it can be overwhelming. Then, when you finally think you can rest, you remember that opening a business bank account is also on your list of things-to-do. Don't worry, it's simple as pie.
 
Banks want your business, so really you have the pick of the litter. As long as the risks associated with your business are not high, banks will be happy to take you on as their custome, as businesses usually make more profit for banks. Before you commit yourself to one bank, research your options. How do the fees compare from this bank to that one? Are you getting the best deal you can?
 
Banks are constantly in the process of customer acquisition. In other words, they need new customers to keep growing and thriving as a business. Yes, they will prescreen your credit history, so be prepared for that. In their application processing system. they will see all your personal financial history. Hopefully you have great credit. But if you don't, you still may be able to get a fair deal with a bank.
 
Choosing which bank
 
Choose a bank you can trust, with good interest rates. You may prefer to stick with the local bank that has served you well for the past 20 years. Or, you may feel more comfortable with the security of a national or international banking outfit. Your choice depends on personal taste and the vision for your business.
 
The first requirement for opening a business bank account is business registration with the government. Your business may be a sole proprietorship, general partnership, limited liability company, corporation, association or nonprofit organization. All can qualify for a business banking account.
 
Setting up the bank account is relatively easy: Just bring your business license and relevant tax identification papers. You may have to sit awhile as they process your history and the business papers. It can take some time, so plan on reserving at least two hours for the meeting. When the bank agent presents your documents to sign, give it a good read over. Make sure you are clear on all the fine print.
 
 
Now what about getting a loan?
 
After you open your business bank account, you may want a loan. To really grow your business you will need a chunk of money, and for most of us, this means borrowing from the bank. If you have been saving up and have sufficient resources to grow a successful business, lucky you: A loan may be unecessary.
 
For the rest of us, taking out a bank loan for 10 or a hundred thousand is a big step. The investment can pay off high, potentially. Or you could be in debt for years. If you believe in your business and have a proven track record of success that indicates continued success in the future, consider that loan.
 
Before committing to a loan, you'll want to ask, "What is the lowest interest rate I can get?" Maybe your bank is already giving you the lowest rate on the market. Also, consider that a bank with incredibly low interest may be *too good to be true.* Such below market interest rates could indicate instability. Beware of small independent banks without a long and solid history. Ask other business people in the area where they take their business.