Choosing the right bank and credit cards is essential for the day-to-day running of specific businesses. The traditional incumbent banks and credit card providers are large institutions which tend to move slowly in response to technological advancements. There are tools useful for startups which are frustratingly missing from the services offered by these banks and the inability of these institutions to keep up with the demands of a digital market has led to the formation of startup-centric bank and credit card services. Here are some of our favorites:
Traditional Incumbent Banks
Brex Cash: Third-party processing of payments incurs fees and may have built-in structural latency. Brex Cash is a business cash management account which runs on newly built core banking infrastructure which, instead of charging transaction fees, rewards its users for transacting through the platform. In addition to receiving points which can be exchanged for cash-back or travel miles, businesses earn a competitive industry leading interest rate on balances.
Mercury: Among the reasons why traditional banks have endured, despite their lack of agility, is their deposit insurance. Mercury offers API access, virtual cards and other tools including real-time cash analytics and programmatic payments for a digital bank account insured by the Federal Deposit Insurance Corporation (FDIC). The bank is built with tech startups in mind and offers business accounts with online features.
Signature Bank (for Chicago Startups): The Chicago-based Signature Bank (which is not affiliated with Signature Bank, New York), focuses on assisting primarily local entrepreneurs. They offer personalised support services to enable business owners to focus on growing their business.
It is generally easiest to get a credit card with the same bank that you have your checking accounts at but there are also some other options.
Brex: The Brex Corporate is specifically crafted to meet the needs of entrepreneurs by offering a variety of features which make conducting business easier for a startup. The credit card does not require personal guarantees, which reinforces the separation of the business from individuals. Additionally, the card offers higher limits, which scale with your business, virtual cards for team members, and an interest-free period of 60 days with no additional fees.
Capital One Spark: There are substantial services and rewards which come with the Capital One Spark Small Business credit card. Extensive account management, employee card functionality and management, 0% fraud liability and travel benefits are among the key features of this card.
The best bank and credit card service for your startup is one that aligns with your needs, goals, expenses and spending patterns. While you’re weighing your options Capital One Spark, Brex, Capital One, and Mercury are all great banks to take a look at.