Timothy Michaelis, assistant professor of entrepreneurship in the Department of Management, was interviewed by CreditDonkey for their series on small business and banking. Along with linking to the writeup (above), we’ve reposted the answers Professor Michaelis provided to CreditDonkey (below):
“What should a small business look for in a checking account?
Consumers should consider the following:
- Free accounts – no or nearly zero fees
- Free services – cash flow reports and simple analytic dashboards, excel or csv downloads of all transactions, spend categorization for tax purposes, checks, wire transfers, ACH transfers and bill pay services.
- Access to lines of credit through the bank (I would ask for history of how quick lines can be approved and what the collateral requirements are for lines of credit.)
- How quickly checks / transfers for customer payments happen (preferably within 24 hours). And, the ability for scheduling accounts payable (bill payments) in advance.
Otherwise I always recommend small businesses find a good fractional CFO and accountant – in other words, a part time financial manager (to save some money) and an accountant familiar with small businesses (ask for their client list and talk to a small business they already represent).
I generally recommend small businesses look for a low fee or free place to store money with very reliable bill pay. I also recommend small businesses to shop around every year or so for better banks because services change and fees can show up later down the line. There are a lot of amazing bonuses for small businesses ($500+) signing up for bank accounts – why not open a few different bank accounts so not all of your eggs are in one basket?”
As shared on the platform: “CreditDonkey is a personal finance site that offers advice on building long-term wealth. They specialize in how-to guides for financial milestones (such as buying a house, investing and saving). The company is committed to helping young adults achieve financial independence and individual money goals.”
posted 2.16.21 by M. De Jean, Director of Marketing, NIU Business