The process of opening a business account can vary from country to country, but there are a few steps you can expect across the board. For one, business accounts are generally opened during the incorporation stage of your business. In this blog, we provide a step-by-step guide on how to open a business account, plus everything you need to know to get up one and running.
What is a business bank account?
A business or ‘corporate’ bank account is a type of bank account that is used solely for business transactions. They’re generally used by large and enterprise-level companies, sole traders, charities and other business organisations. Businesses can open accounts with traditional banks or they can use modern alternatives like online banks, neo-banks, fintechs and electronic money institutions (EMIs).
Traditional vs. online banks
- Make deposits
- Send and receive payments
- Apply for business loans
- And much more
- Invoicing and billing tools that can be integrated with other accounting software.
- Merchant services (like e-commerce payment gateways).
- APIs and integrations, such as accounting tools and CRMs.
Traditional business banksOnline business banksHigh transaction fees✓✕
Quick, easy account setup ✕ ✓ Fast, low-cost international payments ✕ ✓Fast, low-cost domestic payments and transfers✕✓Dedicated client support✓✓ Apply for business loans ✓ ✓APIs and integrations✕✓
It's worth noting that with an online business account like 3S Money's International Business Account, sending and receiving international business payments is much faster and cheaper than with traditional banks. Read on for information on fees.
Who should use a business account?
Two main types of businesses should use corporate accounts for their financial operations. They are:
- Sole traders: a person who is self-employed, running their own business. For sole traders, having a business account is necessary for separating personal and business funds.
- Limited companies: businesses that are legally considered ‘distinct bodies’ from the people who run them.
Personal identification documents
Business registration documents
Tax identification number
Evaluating your options
- Checking and savings accounts
- Merchant services
- Business loans
- Lines of credit
- Online banking and mobile banking apps?
- Monthly maintenance fees
- Transaction fees
- Overdraft fees
- ATM fees
- Wire transfer fees
- Any other charges that may apply to your account.
Choosing the right type of account
- Merchant account
Merchant services encompass a range of financial services that enable businesses to accept and process electronic payments from customers.
- Business savings account
This type of account is ideal for setting aside excess funds and earning interest on them.
- Business certificate of deposit (CD) account
Like a business savings account, this account allows your business to save funds – but at a fixed interest rate for a fixed time period.
- Business money market account
A type of account (like a savings account) that allows businesses to earn competitive interest.
- Business checking account
This type of account is ideal for handling everyday financial activities such as receiving payments, making purchases, and paying bills.
4. Opening an account with 3S Money
Our express online application will assess your eligibility for a 3S Money account – usually pre-approved in under 15 minutes.
Here, you’ll need to provide proof of ID, such as your EU identity card. 3S Money follows strict compliance and Know Your Customer (KYC) procedures to ensure the security of your account.
Next, you’ll hear from our Sales team via welcome call or email. They'll want to understand any bespoke payment needs you may have and will be on hand to answer any questions.
Lastly, our compliance team will personally review your application. If your application is successful, you’ll be up and running with human support on hand to assist, whenever you need it.
Get started today
Some banks require an opening deposit ranging from $5 to $1,000 to get started. Others have no initial deposit, and some have a monthly maintenance fee. 3S Money requires an opening deposit of around $300, depending on your account type, plus monthly maintenance fees.
Yes you can. 3S Money makes it quick and easy to open a business account, in only four simple steps.
Depending on which type of banking provider you use, setting up a business account can take anywhere up to four weeks. With 3S Money, you can be pre-approved for an international business account in less than 15 minutes.