What are the Benefits of Opening a Corporate Account?14 min read
Reading Time: 6 minutesOpening a corporate account has numerous benefits that can help businesses of all sizes thrive. Let’s dive into some of the top advantages of getting a corporate account established.
Benefits of Corporate Account in Digital Banking
Here are the main benefits of opening a corporate account in online banking:
Separate Finances Keep Things Organized
One of the biggest benefits of opening a corporate account is that it allows you to separate your business finances from your personal finances. This brings order and clarity to your bookkeeping. With business and personal transactions separated, it’s easy to prepare taxes and see exactly how your company is performing financially at a glance.
Build Business Credit Over Time
Having a corporate account allows you to establish business credit history over time. As you responsibly manage payments and balances with your corporate account, you demonstrate to lenders that your business is financially responsible. This paves the way to qualify for business loans and lines of credit down the road. Establishing good credit opens up opportunities for your business to grow.
Appear More Professional to Clients and Vendors
Presenting a professional image is important when doing business. Using a corporate bank account displays that level of professionalism when transacting with clients and paying vendors. A dedicated corporate account shows that you are serious about operating your business successfully.
Gain Access to Useful Business Banking Tools
Many banks offer useful account management tools, reporting features, and other services tailored specifically for business clients with corporate accounts. Take advantage of business budgeting templates, spending analytics, wire transfers, payroll services, and more – all under one convenient business banking solution.
Protect Personal Assets from Business Liability
Corporate banking establishes legal separation between your business and personal finances. If a creditor sues your company for an unpaid debt, only the corporate account can be pursued for repayment – not your personal bank accounts or assets. This protects your personal finances and credit scores from any risks associated with operating your business.
Corporate banking brings many advantages to simplify administration of business finances. The benefits of building credit history, gaining useful tools, and clarifying liability make opening a corporate account highly worthwhile. Take steps today to start reaping these rewards for your company.
How Do I Open an Online Corporate Account?
Opening a corporate account online with a digital banking platform like The Kingdom Bank is straightforward and can be done entirely from your computer or mobile device. Here are the simple steps to get started:
Register Your Business Information
Go to the bank’s website and fill out a new account application. Provide your business name, Tax ID number, physical address, and other basic identification details.
Upload Business Registration Documents
Submit documents like articles of incorporation, business license or permits, and others to verify your business is properly registered in your state or country.
Provide Identification for Account Signers
Upload photo IDs for all individuals authorized to sign on the corporate account, such as the business owner(s) and officers.
Designate Account Signatories
Input the names and roles of people who will be signatories with access and permission to manage account transactions.
Fund the Opening Deposit
Transfer the minimum opening deposit amount required, typically $500-1000, from your personal account. This deposit secures the account.
Confirmation and Onboarding Process
Expect a short review period before final approval. Then log in to your new online corporate account and you’re ready to start managing business finances digitally!
With a few clicks you’ll be up and running with an online corporate account tailored for business banking needs. Digital onboarding makes the process fast, convenient and fully accessible from anywhere.
Can I Open a Corporate Account for Any Type of Business?
Whether your business is an LLC, sole proprietorship, partnership or corporation, many digital banking platforms like The Kingdom Bank allow you to open a corporate account suitable for most business structures and operations. Here are some notes on account types for different businesses:
Sole proprietorships: A standard business checking account works well and offers liability protection as long as finances are separated from personal accounts.
Partnerships: Partnership business accounts function much like sole proprietor accounts but allow for multiple owners. All partners typically need to be account signers.
LLC: Limited liability companies can open corporate accounts which provide legal protection of personal finances from business debts and liabilities.
Corporations: Incorporated businesses like S-Corps or C-Corps must open corporate accounts to legally separate the corporation as a distinct legal entity from shareholders.
Non-profits: Not-for-profit corporations and charities are equally capable of having corporate accounts while separately tracking restricted donation or grant funds.
Unless your industry has specific capital or account holder requirements, most forms of companies engaged in lawful commerce are eligible for affordable online corporate accounts through digital business banking platforms. Consult the bank for details applicable to your business structure.
Can I Access Online Banking Services with a Corporate Account?
One of the major advantages of opening a corporate account with a digital banking platform like The Kingdom Bank is the powerful suite of online banking tools and features at your fingertips. Here’s an overview of some core online banking services commonly available:
Mobile Banking Apps
Convenient banking on the go from any smartphone allows easy access to balances, transfers, payments, statements and more from anywhere.
Online Account Management
Log in from your computer to deposit funds, process wire transfers, pay bills online and configure account alerts.
Spending Analytics
Review reports and charts showing cash flow trends over time to better understand spending habits and track income categories.
Wire Transfers
Quickly send and receive domestic and international funds with low transfer fees for key b2b payments.
E-Statements
View, download and archive digital monthly statements and receipts in one online central dashboard for easy record-keeping.
Commercial Cards
Some banks offer virtual corporate credit cards for small businesses to easily manage team expenses and track spending.
Integrated Accounting
Business owners appreciate seamless downloads into accounting software like QuickBooks to reconcile accounts payable/receivable.
Digitally-powered online banking makes handling finances on the go and accessing important corporate account details a snap. It’s a convenient solution for busy small businesses.
Can I Apply for Business Credit Cards or Loans with a Corporate Account?
Establishing a solid financial history through responsible management of a corporate bank account opens the door to access important business funding sources down the road. Here’s how having a corporate account can help when seeking loans and lines of credit:
Build Business Credit Score
Payment behaviors with vendors, timely loan payments if any, and routine account balances all contribute to building a FICO score specific to your company over 6-24 months.
Underwriting Consideration
Lenders will favorably consider business loan and credit card applications from companies with established positive payment histories on corporate accounts in good standing.
Credit Line Increases
For businesses that have been banking corporately for years, banks may offer higher credit limits oncards or larger approved loan amounts based on consistent financial performance.
Business Line of Credit
Some banks tie business lines of credit—a flexible credit source for operational expenses—directly to corporate account relationships of 2+ years.
SBA Loan Package Support
Solid corporate banking acts as a vote of financial confidence that strengthens Small Business Administration loan packages when larger funds are required.
Proving financial responsibility through corporate account transactions streamlines the application process and improves chances of approval when pursuing common sources of business funding like credit and loans down the road. Good credit is vital as companies grow.
Best Digital Bank to Open a Corporate Account
Digital banking platforms have streamlined the process of opening corporate accounts for small businesses. One top choice is The Kingdom Bank. Here are some key reasons it’s considered the best online option:
- No minimum balance requirements or monthly account fees
- Fast and simple online application takes 5-10 minutes
- Robust feature-rich online banking portal and mobile apps
- FDIC insured accounts protect business funds up to $250,000
- Multi-user access allows staff control and full transparency
- Global money transfers at competitive exchange rates
- Dedicated customer support team via phone, email and chat
- Corporate and payroll debit cards make expenses effortless
- 24/7 account access from web or app for anytime banking
The Kingdom Bank’s digital business banking solutions allow growing companies to focus on operations instead of tedious administration. With easy online onboarding and minimal costs, it’s an excellent choice for both small startups and established enterprises.
Opening a new corporate account is free and takes minutes at The Kingdom Bank’s website. Contact their friendly team today to set up your account and commence securing the benefits of professionally managing company finances digitally.
