What You Need to Open a Business Banking Account

Once you’ve started a business, the money is going to be coming in. You will need a business banking account to keep finances in order and manage cash flow. But, before you head down to your local First Bank,* grab these key documents so your application goes smoothly.

Bring These Documents to Open a Business Banking Account

Every financial institution has a procedure for business owners who want to open a bank account. Because businesses make more withdrawals and deposits than the average customer, there are a few documents that a financial advisor will need to see during the application process.

Business Licenses

Bring along your official license to practice your profession or skill. This extends from everything from law to construction. If your license is in process, ask for an official document stating so from the licensing source.

Registration of Business

Before opening your business, you probably had to register with the city or state. Be sure to bring the official name and registration information along with you to the bank. This will improve your credibility during the application process.

Documentation of Account Holders

If your business banking account will be accessed by more than one person, thorough identification will be required of each party. For most applications, a driver’s license, passport or other government picture ID will suffice. It is helpful for all account owners to be present during the application process.

Deposit Amount

Business banking accounts usually require an initial deposit to be opened. Deposits should be made in cash or in money order form and should meet or exceed the minimum required.

Once you have gathered the necessary documents and banknotes, you can arrive fully prepared for a business banking account application.

Choosing a Business Banking Institution

First Bank business banking solutions are designed for convenience and security. We offer a comprehensive range of business banking accounts designed to meet the unique needs of your company. Contact us today to learn more.

*Member FDIC.

———

Sources:

Business News Daily: http://www.businessnewsdaily.com/6477-business-bank-account-documentation.html

Share:

Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.

First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

Construction table with blueprints, hard hat and tools

Small Construction Firms: Avoid These Four Trouble Spots First Bank’s Travis Bailey is a financial guide for many small construction firms – the kind that might build 20 to 25 homes per year. We spoke to him about 4 financial trouble spots for construction firms. 2 min read

FinCEN BOI Reporting: What’s Required & Resources The U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) now requires certain newly-formed and start-up businesses to report their Beneficial Ownership Information (BOI). Here are a few helpful tips to get you started from the FinCEN BOI website. 3 min read

Find Small Business Loans in South Carolina It can be hard finding the right small business loans in South Carolina, especially when you’re looking for a new bank. At First Bank, we’re have six convenient locations across South Carolina to provide the best in small business banking. Loan Options for Small Businesses When you work with First Bank, you’re working with the bank that was named the Community Bank of the Year by NC Rural Center. Check out our small business loan options, featuring flexible terms and competitive rates you can expect from working with First Bank. Business Loans — When you need an immediate lump sum of cash to help finance projects, inventory, or equipment, consider one of our business loans. Our loans are convenient for small business owners looking for long-term financing options.* Lines of Credit — First Bank’s lines of credit give small business owners the flexibility they’re looking for when they need to quickly and conveniently access cash. No matter how you use it, our credit lines are designed to meet your business’s unique financial needs. Commercial Mortgages — Our wide selection of commercial mortgages are available at a competitive price. We have a dedicated staff of commercial real estate specialists who can offer industry knowledge and market area expertise to help you find the right product for the needs of your business.* Construction Loans — For small businesses looking for begin a project for new construction, remodeling, expansion, or other construction projects, First Bank’s financing team can provide loans for investors and builders looking to for loans uniquely designed for their construction needs. Business Credit Cards — We offer our First Bank Mastercard Business Card with Rewards credit card, which can benefit small businesses as their own expense management tool that offers lower rates, no annual fee, and rewards benefits.* All Your Business Loan Needs at First Bank in South Carolina Since opening our first branch in 1935, First Bank has been dedicated to helping local communities succeed in their financial endeavors. Whether you’re looking for a personal or small business loan in South Carolina, we can work with you to find the best products for your needs. Come visit your nearest First Bank in South Carolina today to get started. *Loans subject to credit approval. See our Terms and Conditions for complete 3 min read

Changes to SBA 7(a) Program for Business Acquisitions Changes to SBA Loans for Business Acquisitions Coming August 1, 2023 If your client is considering an SBA Loan to acquire or change ownership percentage of a business, they could be impacted by the recent changes announced by the Small Business Administration (SBA). A number of updates to their Standard Operating Procedures (SOP), will be made effective August 1, 2023. The following is an overview of the updates. Our Business Development Officers are well-versed in these changes and ready to discuss how they may impact your client’s SBA lending opportunities. Read more about these upcoming changes based on the type of acquisition or ownership change you would be making: Complete change of ownership Complete partner buyout Partial change of ownership or any other change in ownership SBA Loans financing a complete change of business ownership At a minimum, SBA requires an equity injection of at least 10% of the total project costs. This means that in order to qualify, you’ll need to provide 10% of all costs required to complete the change of ownership, including working capital needs regardless of the source of funds. Seller debt may not be considered part of the equity injection unless it is on full standby for the first 24 months of the SBA 7a loan or it is a debt that is on partial standby (only interest payments are being made). Partial standby debt will be considered equity if there is historical business cash flow available to make the payments and at least a quarter of the SBA-required equity injection is from a source other than the seller. If the buyer owns a business that is in the same 6 digit NAICS code, will have identical ownership and located in the same geographic area as the entity being acquired, SBA considers this to be a business expansion and SBA will not require a minimum equity injection. However, depending on the strength of the buyer, the bank may require an equity injection. SBA Loans financing a change of ownership between existing owners If the 7(a) loan will finance more than 90% of the purchase price of a partner buyout, both of the following must be met: The remaining owner(s) must certify that they have been 4 min read

What You Need to Open a Business Banking Account

Ready to talk to an expert?

Bring These Documents to Open a Business Banking Account

Ready to talk to an expert?

You may be interested in...