Bank of America Small Business Checking is a good option for business owners who need a basic checking account with no monthly fees. The account comes with a number of features, including online and mobile banking, bill pay, and a debit card. Bank of America also offers a variety of business loans and other financial products. However, there are some drawbacks to Bank of America’s small business checking. The account does not offer any interest on balances, and there are fees for some transactions, such as out-of-network ATM withdrawals. Additionally, Bank of America has been fined for its handling of customer data, so some business owners may be concerned about the bank’s security practices.
Overall, Bank of America Small Business Checking is a good option for business owners who are looking for a basic checking account with no monthly fees. However, business owners who need more features or who are concerned about the bank’s security practices may want to consider another option.
Bank of America Small Business
It is important to note that, Bank of America business checking distinguishes itself from the national and regional competition by providing fee-free electronic transactions, high cash deposit limits, and three distinct ways to open an account. Bank of America offers two small-business checking accounts: Business Advantage FundamentalsTM Banking and Business Advantage Relationship Banking. While this review covers both accounts, the star rating only applies to the Business Advantage FundamentalsTM account. Bank of America’s business accounts is a digital-friendly solution for small-company owners who desire some access to in-person banking, with thousands of branch locations in 37 states and Washington, D.C.
Bank of America business checking is ideal for small-company owners who:
1. Wish to conduct some of their business banking in person.
2. Don’t mind paying a monthly charge or qualify for a fee waiver.
3. Run a cash-intensive business.
4. Would like to use their bank’s banking or financial services in the future.
Pros
1. Electronic transactions are free of charge.
2. Cash deposit limitations are high.
3. Online business accounts are available.
Cons
1. There is no option for a free business checking account.
2. Expensive incidentals.
3. There is a fee for using out-of-network ATMs.
Bank of America Small Business Account
Bank of America offers two types of business checking accounts: Business Fundamentals and Business Advantage. Both are inexpensive. The Business Fundamentals Account has a monthly maintenance cost of $17, and a second business checking account has a monthly maintenance fee of $12. You can avoid these fees by spending at least $250 on net new goods or services with a business debit or credit card, maintaining an average monthly balance of $5,000, a minimum daily balance of $3,000, or a combined average monthly balance of $15,000 across linked Bank of America business accounts. The monthly maintenance price for the Business Advantage Checking Account is $29.95, however, each additional checking account for a business is free.
You can avoid this fee if you spend $2,500 on net new goods or services on your business credit card. And also, maintain an average monthly balance of $15,000, have a combined average monthly balance of $35,000 or higher across linked Bank of America business accounts, or use Bank of America Merchant Services or Payroll Services on a regular basis. The Bank of America firm Fundamentals Checking Account is designed to provide the basic banking services that a well-established firm requires. It is best suited for businesses that require basic checking services, spend at least $250 per month, and have an average monthly balance of less than $5,000. With spending and balance limits set for that period, this account is best suited for small enterprises that are still growing their customer base.
Established firms will spend far more than $250 per month and will require far more than $5,000 per month in a bank account. For no additional price, you can combine the Business Fundamentals checking account with Bank of America’s Business Investment savings account.
Bank of America Small Business Online Banking
To access your accounts online, you must first sign up for Business Advantage 360, Bank of America’s online banking platform. You can then do the following:
- Real-time balances, transaction reports, previous bank statements, and online check and deposit slip photos are all available.
- Sync transactions with QuickBooks
- Configure account access for numerous users.
- Obtain business credit score information from Dun & Bradstreet.
- Pay your bills
- Reorder checks
- Request check stop payments
- Transfer funds to other financial institutions
- Make wire transfers on the same day.
If you have a small Business Remote Deposit Online, you can deposit checks without going to the bank. Bank of America’s mobile banking app has received positive feedback on both the App Store (4.8 out of 5 stars with over 4 million ratings) and the Play Store (4.6 out of 5 stars with over 1 million ratings). Some customers claimed it was simple to login in and utilize the app, but others had trouble scheduling payments and depositing checks. Users have reported that moving between business and personal accounts causes the app to crash. There has also been mixed reaction to the availability of a virtual assistant 24 hours a day, seven days a week. Some people like this feature, while others dislike it.
Bank of America Small Business Credit Card
Bank of America® offers a variety of business credit cards that earn cash back or travel rewards, as well as other benefits, to meet the various needs of small businesses. Existing business checking clients will get the most bang for their buck with the Bank of America® Business Advantage cards, as they may earn additional benefits through the Preferred Benefits for Business program. To qualify for a Bank of America® business credit card, you must have outstanding personal credit (720+). Other small-business credit cards accept candidates with strong FICO scores (690 to 719). Business credit cards issued by best Bank of America®
#1. Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card
The outstanding no-annual-fee travel card from the issuer is available in this business variant. The Bank of America® Business Advantage Travel Rewards World Mastercard® credit card offers competitive rewards on each purchase and offers you a broad range of redemption options for your points, free from the limitations of airline and hotel brand-specific cards.
#2. Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® Credit Card
Consider the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® credit card if your spending doesn’t fit into the normal bonus areas. This credit card gives unlimited 1.5% cash back on all purchases. There are few flat-rate cash-back business credit cards that can match the rewards that Bank of America® customers who qualify for the Preferred Rewards for Business tier may earn, which can reach up to 2.62%.
#3. Alaska Airlines Visa® Business Card
For business owners that use Alaska Airlines frequently, the Visa® Business card from Alaska Airlines is a good option. Additionally, there are no foreign transaction fees and you’ll continue to earn rewards for your airline purchases. The card’s welcome bonus, annual companion fare, free checked bag benefit, and other airline-specific discounts are all excellent travel perks that help offset the already reasonable annual charge of $70 for the business and $25 for each card.
Benefits of Bank of America® Business Credit Cards
Here are the advantages you’ll get from all Bank of America® small-business credit cards, in addition to the benefits connected with each specific card:
1. Employee cards: Purchase cards for your staff members and establish personal spending caps.
2. Tools for managing your cash flow include downloading transactions into QuickBooks, setting up automatic payments, and utilizing other internet services.
3. Guarantee of $0 Liability: No liability for unauthorized transactions. There are additional rules and regulations.
4. Chip cards: Place your card in the reader or tap the contactless icon to make a purchase.
Bank of America Small Business Loan
For established enterprises, Bank of America provides business loans and lines of credit that are both secured and unsecured. Despite the longer and more involved application process compared to some other lenders, you can finish up with better terms and rates. However, some people might not be able to meet the minimum income requirements for eligibility. For established small and mid-sized enterprises, Bank of America offers a choice of secured and unsecured business lending options.
#1. Secured Business Line of Credit
With interest rates starting at 8.5%, this credit line has a $25,000 maximum. Expect to provide security in the form of a certificate of deposit (CD) or a blanket lien on general assets if you’re going for a credit line that is greater than $100,000. Bank of America will examine your account annually to see whether you qualify for renewal. For lines up to $100,000, the annual cost is $150; for lines between $100,000 and $250,000, the fee is $250; and for lines exceeding $250,000, the fee is 0.5% of the line amount. You must have operated your company for at least two years as the proprietor and had yearly sales of at least $250,000 to be eligible.
#2. Business Advantage Cash-Secured Credit Line
A cash-secured credit line is one approach for those who want to build their business credit to do so. Your credit line will be equal to your minimum deposit, which is $1,000. You must have been in the company for at least six months and bring in $50,000 annually to be eligible. If you fulfill the requirements, Bank of America will examine your file after you establish credit and maintain the account in good standing for 12 months and upgrade you to an unsecured line of credit.
#3. Business Advantage Term Loan
Unsecured business loans from Bank of America start at $10,000 with interest rates as high as 6.75% if you prefer a loan with a fixed payment. You can choose from maturities of 12 to 60 months, and the origination cost is $150. You must have two years of operating experience under the same ownership, $100,000 in yearly revenue, and a credit score of 670 or above to be eligible.
#4. Secured Business Loan
The secured business loan from Bank of America includes a minimum loan amount of $25,000 with interest rates that start at 6.5%. 0.5 percent of the loan’s total amount is the origination charge. When utilizing assets as collateral, terms can be up to four years, or up to five years when using a CD. You must have operated your firm for at least two years under the same ownership and bring in at least $250,000 annually to be eligible.
How Do I Contact Bank of America Small Business Banking?
Call the number on the back of your Bank of America credit card or (800) 732-9194 to speak with a live customer service person anytime, day or night. Online or via the mobile app, you may also arrange a face-to-face or telephone meeting with a Bank of America representative. Log in to Online Banking and select your account’s Information & Services tab. Phone number: 888.BUSINESS (888.287.4637).
What Is the Minimum Deposit to Open a Business Account at Bank of America?
$100. Rates are subject to change without notice at any moment. Fees could lower account earnings. For this account, a $100 minimum starting deposit is required.
Can I Open a Business Account Without an Ein Bank of America?
If your company is structured as a sole proprietorship or a single-member limited liability company (LLC), you can open a business bank account without an employee identification number (EIN).
Can You Open a Business Bank Account With No Money?
You can still locate financial institutions that do not require a minimum initial deposit, despite the fact that many commercial banks require an opening deposit to create a new account. In the early stages of your firm, opening a deposit-free business checking or savings account is a terrific activity to complete.
Can I Be Denied Opening a Business Bank Account?
Getting a business bank account is not guaranteed. Banks are not required to open an account for any particular firm, and they are free to reject an application for a number of reasons. The bank is typically obligated to give a justification for rejecting the applications in the event of a denial.
Where Can I Cash a $20000 Check Without a Bank Account?
Cash the cheque at the bank that issued it (the check’s preprint will indicate which bank this is). Visit a retailer that accepts checks (such as a discount department store, a grocery store, etc.) to cash a check. Visit a check-cashing business to cash the cheque. On a checkless debit card or prepaid card account, make an ATM deposit.
Final Verdict
Bank of America is an excellent alternative for cash-strapped businesses seeking a traditional banking provider with substantial restrictions on both cash deposits and day-to-day transactions. It features two excellent checking tools that you may alternate between as your business requirements vary. Although neither account is without fees, many of them can be avoided by completing realistic account milestones.
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