Running a business sounds easy, but it involves a lot of work, especially in the planning and setup stages. First, you have to get your company registered and, in some cases, also get a trademark registered for your company’s name, products, or services. Then, you also have to meet with different vendors, look for investors, and so much more.
When setting up a business, one of the most crucial steps is to consider online banking options that will serve as the foundation for all your financial operations. Not only does a good bank help you with seamless payments and transactions, but it also helps you speed up your business operations and enhance your cash flow.
Nowadays, there is no business without online banking, which helps you conduct business worldwide without visiting banks physically, filling out extensive and tedious forms, and calling the bank to confirm or verify every transaction. However, you don’t just need online or mobile banking services to get into a long-lasting relationship with a bank.
How Can Online Banking be Beneficial for Businesses
Online banking provides the opportunity to send and receive payments worldwide within a few minutes, and you can also send large amounts of money.
Moreover, you can set up auto-deductions for automatically paying your bills or set recurring payments. In addition, there are many other benefits you can experience from online banks, such as:
Convenience All the Way
With online banking, you can perform all activities related to banking within the comfort of your home or office. You can pay your bills, transfer money, and even request a checkbook, and you won’t even have to go to the bank or give them a call.
Nowadays, almost every bank has a mobile application. Simply sign up and experience what convenience truly means in today’s world of online banking.
Your Bank Account at Your Fingertips
Online banking brings the bank to you. So whether you want to check your books at 3 in the morning or want to transfer an amount to complete that important business deal, you can do it all with just a few taps of your finger.
Save Time, Save Money
Avoid travel costs, processing paper checkbook costs, and others with online banking. Instead, take advantage of the productive and efficient automated systems.
Keep Your Account Secure
Banks nowadays have several layers of security to protect their client’s financial data. They have the latest and the best firewalls, anti-virus software, and encryption. So rest assured that your account details are safe and secure.
Go Green!
Going Green is today’s norm. By cutting down on all the paper coming your way from your bank, you can take a big step towards proclaiming your business as Green.
FAQ
Is Online Banking Safe for Businesses?
All online banks employ advanced security measures and protocols for their financial services and transactions since they are responsible for moving and managing millions of dollars around the globe. Therefore, you can rest assured that your hard-earned money is kept safe and your financial data is encrypted.
Do Online Banks Charge Less in Transfer Fees Than Physical Banks?
The primary reason for the popularity of online banks is that they have much more competitive rates than traditional banks, and most online banking services don’t even charge a transfer fee for transactions below or above a certain amount.
How Do I Choose an Online Bank?
Various factors come into consideration when choosing the best online bank for your business, such as transfer or transaction fees, transaction limits, transfer amount limits, customer experience, safety, compliance with federal regulations, etc. Therefore, it is always wise to look at reviews for each online bank before you select one.
Recommendations
With that said, let’s have a look at some of the best online banking options that businesses can trust.
Wise
Formerly known as TransferWise, Wise is a financial technology giant that originated from London and recently dropped the ‘Transfer’ from their name since they are a massively recognized company now. Its individual and business banking services serve as the backbone for many businesses, both big and small, worldwide.
Pros
- Offers a ‘borderless’ online banking system
- Popular among huge organizations, online businesses, entrepreneurs, SMEs, and freelancers
- Online banking services in more than 70 countries
- Pay up to 1,000 people together
- Provides businesses with support and assistance
Cons
- Only transfers money during regular baking hours
- Can only transfer money to another bank account
Why We Like It
It allows multi-currency transactions for all major currencies, including the US dollar, British pound, euro, Australian dollar, etc. It also provides transparency for your finances by dealing with accurate conversion rates.
OFX
OFX, or OzForex, is an Australian Forex and money transfer company. OFX also provides money transfer services to famous companies such as MoneyGram, Xero, Capital One 360, and many other big names. It can empower businesses of any size to send and receive payments overseas and pay vendors and employees quickly.
Pros
- Allows businesses to manage transactions and payments in 55 different currencies of the world
- Can also link your bank account with OFX to send or receive payments directly
- No limit to the transactions per month
- Manage your business on the go with mobile banking with the OFX Mobile App
Cons
- Not suitable for small transactions as it can get expensive
- May require extra charges in certain aspects
Why We Like It
You can go for the Global Current Account for online sellers who need an account with a few specific currencies. It has the same features as business checking accounts and allows you to receive payments from various e-commerce websites, such as Amazon, eBay, Walmart, etc.
TorFX
Based in the UK, the company has offices all over the US, UK, Europe, and many other locations. So whether you have international clients or have a global workforce that needs to be paid every month, you can avail TorFX for your business operations.
Pros
- Sign up within a few minutes, and you will have a dedicated account manager to handle all your queries and needs
- Doesn’t charge any transfer fees, regardless of the amount that you have to send or receive
- Rapid money transfer from TorFX
- Same day payments
Cons
- Exchange rates can be unfavorable for transactions less than $2,000
- Not suitable for individuals
Why We Like It
You can easily integrate your bank account for quick management of payments, and you can also get unbeatable rates for large sums of money, which is one of its most significant benefits. TorFX also provides a seamless platform for you to send and receive business-related payments quickly and with accurate, real-time conversion rates.
Xe
Xe is a Canada-based company that specializes in Forex and money transfer tools and services. It provides different types of financial services for individuals and businesses through its user-friendly website and mobile applications. Euronet Worldwide, an electronic payments company, acquired Xe in 2015, which allowed them to expand their services.
Xe’s business services are beneficial for everyone, ranging from small businesses to large corporations. It powers up the financial operations for more than 10,000 businesses in various industries and offers competitive exchange rates for multi-currency business payments and transactions.
Pros
- Currency exchange rates are updated in real-time, so you don’t have to worry about overpaying
- Allows to lock in the current rate and schedule a payment for up to 3 years later
- A regulated money transfer company in all the major countries
- Have a safe and secure platform that can be accessed through the website or mobile app
- There is no minimum transfer amount or transfer fees that you have to pay on each transaction
Cons
- You can only see the exchange rate when you make the transaction
- They don’t offer payment for transfer via cash or cheque
- There is only a small margin on the exchange rate, which still means that you have to pay less than traditional banking systems
Why We Like It
You can set your target exchange rate and set the amount to transfer automatically when the rate reaches your target. In addition, a simple signup procedure can be followed for individuals or businesses, which makes it all the easier to set up your account.
Payoneer
If you are actively looking for online banks that provide you with excellent money transfer and foreign exchange services, then you must have heard about Payoneer. The company is a giant in the international payments and money transfer industry. It facilitates major and minor businesses, e-commerce companies, sellers, and even freelancers to send and receive payments worldwide.
Pros
- Offers a myriad of features that help you grow your business
- Gives businesses the benefit of expanding into more marketplaces and industries
- Can also manage your VAT payments to comply with the EU and UK regulations without paying any extra amount
- Can quickly move the money from one Payoneer account to another or to a bank account
Cons
- Creating an account can take a long time
- The website and mobile application can be slow at times
Why We Like It
Sending and receiving payments with Payoneer’s rapid and user-friendly platform is as easy as using a business checking account. In addition, you can have your payment in another currency converted to the current exchange rate and sent to your account at the lowest rates.
Apart from this, its seamless integration with other platforms and its efficient solutions makes it a perfect solution for small businesses and enterprises.
Plus, you can also use a Payoneer debit card to manage daily or frequent business payments, making it easier for you to manage your business.
Conclusion
This brings us to the end of our guide on the best online banking options for businesses, and we have also reviewed each one for its features and benefits to choose one of them with absolute peace of mind. With the growing popularity of online banking, there is no doubt that this industry will keep growing, and there will be increasingly more transfer services popping up.
