Tips on Setting up a Bank Account and Company Credit Cards


Your personal bank account and credit cards is different from your company bank account and credit cards – you should know all the reasons by now. However, setting up a company bank account and credit cards entail different work from setting personal accounts.

Tips on setting up a company bank account

1. Check if the bank has small business or startup company units. Processing and having your questions answered is quicker if the bank have dedicated teams to facilitate new company bank accounts.

2. Check for the fees involved. It is obvious that you cannot rely on the interest payment to offset the fees involved, so shop for banks which offer low transaction cost. Some even offer free transaction costs for some period of time only for new company bank accounts.

3. Check if the bank offers online banking transactions. In today’s business environment, it is hard for a company to compete if it cannot accept or make payment through an online banking service.

4. Choose the bank that is right for you in terms of the following: the nature of ownership of your company, the amount of transaction you will make each week (i.e. writing checks, making personal banking transactions, etc.), customer service, and physical distance of the bank from your office.

5. Check if the bank is financially sound. In times of economic crisis, banks are one of the first to receive the blow. Make sure that the bank has strong background: usually these are those trusted names in the business.

Tips on setting up company credit cards

1. Know your purpose of getting credit card. Is it for purchasing new inventories or paying for employee expenses including special travels. If it includes special travels, better get a card that offers a reward on miles as extra benefit.

2. Compare interest rates and terms of credit. There are tons of credit card companies and banks out there providing company credit card. Shop around for one that gives the best deal before signing up. Remember that company credit cards have higher interest compared to personal credit cards. Obtain the credit card’s statement of fees and examine the fees involved before deciding. American Express Cards are very popular with businesses.

3. Check for special offers when choosing a credit card. Some credit card companies or banks, especially the small ones, offer payback rewards or zero annual fees; they are good option for startup companies. Some credit card companies also offer retail rewards on office supplies and equipment purchases, so hunt these credit cards also.

4. Prepare the necessary requirements. Once you have chosen the best credit card company or bank for you, prepare the necessary papers to apply for credit. Usually, these are proof of incorporation or partnership, company financial statement, the company’s tax payer identification number, and necessary permits.

5. Have a concrete plan to manage company expenses through the credit card. That is to say have a list of expenses in which you can use the credit card for. If the expense is not on the list, then never use the credit card for it – personal expenses is the number one cost to watch out for. Maintain a low balance and be on time on payment to avail low interest.