Online Banks for Small Businesses
As a small business owner, choosing the right banking partner is crucial for managing finances efficiently. With the rise of digital-only banks and traditional banks offering robust online services, entrepreneurs now have more options than ever. This guide provides a detailed comparison of banking fees, mobile features, integrations, and business banking solutions, helping startups and solopreneurs find the best fit. Online Banks for Small Businesses are essential for managing daily transactions, handling payments, and ensuring smooth financial operations.
Key Factors to Consider When Choosing an Online Bank
When selecting an online bank for small businesses, consider the following:
- Banking Fees & Minimum Balance Requirements
- Mobile & Online Banking Features
- Integration with Business Tools
- Merchant Services & Payment Processing
- International Banking & Currency Support
- Cash Flow & Financial Management Tools
- Availability of Premium Business Banking Solutions
Comparison Table: Best Online Banks for Small Businesses
| Bank Name | Type | Monthly Fee | Minimum Balance | Key Features | Pros | Cons |
|---|---|---|---|---|---|---|
| Relay | Digital-only | $0 | $0 | No overdraft fees, multi-user accounts, QuickBooks & Xero integration | No fees, unlimited transactions | No physical branches |
| Bluevine | Digital-only | $0 | $0 | High-yield savings, bill pay, line of credit option | Earns interest on deposits | Limited cash deposit options |
| Lili | Digital-only | $0 | $0 | Auto tax savings, expense categorization, Visa business debit card | Tax tools for freelancers | No check-writing capability |
| Mercury | Digital-only | $0 | $0 | Virtual & physical debit cards, API access, multi-user accounts | Designed for startups | No cash deposits |
| Chase Business Complete Banking | Traditional | $15 (waivable) | $2,000 to waive fee | Free card payments, mobile deposits, Zelle integration | Access to physical branches | Monthly fee if balance requirement isn’t met |
| Bank of America Business Advantage | Traditional | $16 (waivable) | $5,000 to waive fee | Cash flow monitoring, business credit cards | Strong business tools | Higher fees for premium services |
Detailed Bank Comparisons
1. Relay: Best for Multi-User Account Management
- No minimum balance requirements
- Multiple user access with spending controls
- Integration with QuickBooks & Xero
- Ideal for: Businesses needing team-based banking
2. Bluevine: Best for Earning Interest on Deposits
- 2.00% APY on balances up to $250,000
- No monthly fees, no overdraft fees
- Line of credit options for small businesses
- Ideal for: Entrepreneurs looking to grow funds
3. Lili: Best for Solopreneurs & Freelancers
- Automatic tax savings & expense categorization
- No fees, no minimum balances
- Visa business debit card
- Ideal for: Self-employed individuals needing tax-friendly banking
4. Mercury: Best for Startups & Tech Entrepreneurs
- Virtual & physical debit cards
- API access for custom financial tools
- Investor-friendly banking features
- Ideal for: Tech-driven startups with online transactions
5. Chase Business Complete Banking: Best for Traditional Business Needs
- $15 monthly fee (waivable with $2,000 balance)
- Merchant services, cash deposits, Zelle integration
- Access to physical branches
- Ideal for: Businesses needing both online & in-person banking
6. Bank of America Business Advantage: Best for Cash Flow Management
- Cash flow monitoring tools
- Free business credit cards
- High minimum balance requirements for waiving fees
- Ideal for: Established small businesses with high balances
Merchant Services & International Banking
Some online banks for small businesses provide payment processing & international banking services, which are critical for e-commerce and global businesses.
| Bank Name | Merchant Services | International Payments |
| Relay | No built-in payment processing | No foreign currency support |
| Bluevine | Limited merchant services | No international payments |
| Lili | No direct merchant processing | No international transactions |
| Mercury | API integration for payments | Multi-currency support |
| Chase | Full merchant services | Wire transfers & currency exchange |
| Bank of America | Full merchant services | Foreign transactions & multi-currency accounts |
Cash Flow Management & Business Integrations
Many online banks for small businesses integrate with accounting tools, payroll software, and automation features to help businesses manage cash flow efficiently.
| Bank Name | Accounting Integration | Cash Flow Tools |
| Relay | QuickBooks, Xero | Custom spending limits |
| Bluevine | QuickBooks | Business line of credit |
| Lili | Built-in tax savings | Expense tracking |
| Mercury | API access | Investor reports |
| Chase | QuickBooks, Zelle | Cash flow insights |
| Bank of America | QuickBooks, ADP Payroll | Business credit options |
Choosing the Right Online Bank: A Comparison Tool
To find the best online bank for small businesses, consider using the following guide:
- Low Fees & No Minimum Balances: Choose Bluevine, Relay, or Lili.
- Access to Physical Branches: Consider Chase or Bank of America.
- Strong Digital Tools & Integrations: Relay and Mercury are top choices.
- Merchant Services & Payment Processing: Chase and Bank of America excel here.
- International Transactions & Multi-Currency Accounts: Mercury and Bank of America offer the best options.
Conclusion
For startups and solopreneurs, selecting the best online bank for small businesses depends on business structure, transaction needs, and additional services like merchant processing and international banking. Digital-only banks like Relay, Bluevine, and Lili offer low fees and modern integrations, while traditional banks like Chase and Bank of America provide brick-and-mortar support with premium services. Entrepreneurs should weigh features carefully and choose an online bank that aligns with their financial needs.
