A business bank account can be denied if the bank is not willing to deal with your type of business.
If you are opening an account for a sole proprietorship, partnership or corporation, then you will need to have a business checking account and a business savings account.
You may also want to open a line of credit in order to get started. The best way to do this is through a local bank that has experience working with businesses.
Also, there may be other less known reasons as to why your business bank account has been denied. In this article we shall take a look at a few of them, and discuss why a business checking account is important.
Common Reasons That You’ve Been Denied A Business Bank Account
Here is a quick list of potential reasons your business bank account may have been denied:
- Your company’s name does not match the name on the account.
- Your company’s address does not match the address on the account.
- There is no documentation showing that you are authorized to use the account.
- The account was opened by someone else who did not provide proper authorization.
- The account was opened without the consent of the owner.
- The account was opened before the date specified on the application.
What To Do If Your Business Bank Account Has Been Denied
The first thing you should do when you find out that your business bank account has not been approved is to contact the bank immediately.
This is very important because it could mean that your business is not going to receive any money until the problem is resolved.
In addition, you should make sure that all of your paperwork matches up properly. For example, if you have been using a personal checking account for years, then it would be wise to switch over to a business checking account.
Another possible reason that your business bank account may be denied is that you have too many accounts. The bank may not like having so many different types of accounts.
Another common reason that your business bank accounts may have been denied is that they were opened by someone else. It is very important that you keep a record of every transaction made on your business bank account.
How Can I Get My Business Bank Account Approved?
There are several ways that you can go about getting your business bank account approved. One way is to apply online. Another option is to call the bank directly and ask them to approve your account.
However, another option is to apply for a loan from a local financial institution. Once you have secured a loan, you can use the funds to pay off your business bank account.
This method is often used by small business owners who don’t have enough cash flow to cover their monthly expenses.
A third option is to secure a line of credit from a local bank. Once again, once you have secured a line of credit, you can use the money to pay off your business banking account.
Another popular way to get your business bank account approved is to use a service called Payday Loan Direct Lenders. With this service, you will be able to access a wide range of loans that are specifically designed to help people with bad credit issues.
One more thing to consider is that you may want to open an additional business checking account in order to avoid problems down the road.
You may also want to consider opening a business savings account in order to save some money for future purchases or emergencies.
Requirements Of Opening A Business Checking Account
If you need to open a business checking account, you should know that there are certain requirements that must be met in order to qualify. These include:
- A minimum balance requirement of $500
- A maximum daily withdrawal limit of $100
- A minimum number of transactions per month
- A minimum age requirement of 18 years old
If you meet these criteria, you will be eligible to open a business checking. However, you should note that banks typically require business checking accounts to have higher fees than standard checking accounts.
In fact, most banks charge anywhere from $10 to 20 dollars per month just to maintain a business checking account. So, if you plan to open a business checking, you should do so only if you absolutely need one.
The Importance Of Having An Online Business Banking Account
When you run a business, you will find that it’s essential to have an online business banking account.
Because when you’re running a business, you’ll likely be dealing with multiple vendors at any given time.
And because you’re going to be doing business with multiple vendors, you’ll need to make sure that you have all the necessary information regarding each vendor available to you.
For example, if you’re working with a vendor who sells products through Amazon.com, you’ll need to have your Amazon.com login credentials available to you at all times.
If you’re not having this type of information readily available to you, then you could potentially lose a lot of money.
So, what exactly does having an online business banking account mean? Well, it means that you can easily log into your account and view all the important information about your vendors. This includes things like:
- Your billing address
- The name and phone number of the person who handles orders
- The email address where you can send them emails
- The website where they sell their products
- Their payment terms
- Any other relevant information
Of course, you don’t necessarily need to go out and buy an entire suite of software in order to gain access to this information. Instead, many businesses simply use a free program called QuickBooks Online.
However, even though using QuickBooks Online isn’t mandatory, it’s still highly recommended. After all, by using QuickBooks Online, you’ll be able to see everything that you need to without ever having to leave the comfort of your own home.
Being denied a business bank account doesn’t mean that you can’t start a business. In fact, it might actually be better for you to start a business if you don’t have a bank account.
After all, starting a business without a bank account means that you won’t be paying any monthly fees.
And since you won’t be paying anything, you won’t have to worry about making sure that you have enough money coming in every month.
Instead, you’ll be able to focus on growing your business – however, if you want to take the professional approach and not use your personal account, then opening a business bank account is the way to go.
You will have to do it eventually anyway!
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.