10 Best Bank In Canada For Small Business

Starting and growing a small business can be a challenging and exciting journey. One crucial aspect of running a successful business is choosing the right bank to handle your financial needs.

With so many options available in Canada, knowing which bank is the best fit for your business can take time and effort.

To help you make an informed decision, we have compiled a list of the top 10 banks in Canada for small businesses in 2023, based on factors such as fees, interest rates, and customer service.

Whether you’re just starting or looking to expand, these banks are sure to offer the support and resources you need to take your business to the next level.

So, Let’s dive in and find out which bank will best fit your business.

Why do you Need a Bank in Canada for a Small Business?
Why and Why Not Open A Business Bank Account?
- Pros
- Cons
What are the Requirements For Opening A Bank Account For A Small Business?
Step By Step Guide For Opening A Bank Account For A Small Business
10 Best Bank In Canada For Small Businesses
Frequently Asked Questions
Conclusion
References
Recommendation

Why do you Need a Bank in Canada for a Small Business?

A bank in Canada is an essential part of running a small business for several reasons:

Financial Management

A bank account allows you to manage your business finances in an organized and efficient manner, including depositing revenue, paying bills, and keeping track of expenses.

Access to Credit

Banks provide small businesses with access to credit, such as business loans and lines of credit, for things like equipment purchases, working capital, or expansion.

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Payment Processing

Banks offer various payment processing services such as debit and credit card processing, e-transfer, and online payment gateway, allowing you to receive payment from customers in different ways.

Financial Security

Banks provide a secure and protected way to store and manage your business funds. This ensures that your money is safe and protected from fraud or theft.

Professionalism

Having a business bank account can give your business a more professional image and make it easier for customers and suppliers to do business with you.

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Compliance

Some banks in Canada also offer services to help small business owners with financial reporting and compliance with government regulations.

Having a bank account for your small business can help you manage your finances, access credit, process payments, keep your funds secure, and maintain a professional image. It also helps small business owners comply with the country’s laws and regulations.

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Why and Why Not Open A Business Bank Account?

Pros

It helps you keep track of your business’s finances.
It makes CRA audits easier
A business with a bank account often has access to payroll solutions.
It enables you to keep your costs separate from your business costs.
Incorporated companies must maintain a different bank account for the business.
If you ever want to sell your business, the person who wants to buy it will ask to see your bank statements.

Cons

Most business bank accounts have extra fees that you have to pay.
There are transaction limits for each month.
Most business bank accounts get little interest.
Business accounts have pros and cons, but in most cases, the pros are more important than the cons.

What are the Requirements For Opening A Bank Account For A Small Business?

The requirements for opening a bank account for a small business may vary depending on the bank and type of account, but generally, you will need the following:

Business registration documents: You will need proof that your business is registered, such as a business registration certificate, articles of incorporation, or a business license.
Business Tax ID: Your business will need a tax ID number, such as a GST/HST number, which you can obtain from the Canada Revenue Agency.
Business Plan: Some banks may require you to provide a business plan outlining the details of your business, including financial projections and management strategies.
Personal identification: You must provide personal identification for the business owner(s) and authorized signers, such as a passport, driver’s license, or national ID card.
Business address: You will need to provide proof of your business address, such as a lease agreement or utility bill.
Initial deposit: Some banks may require an initial deposit to open a business bank account.

It’s important to note that some banks may have additional requirements or different needs depending on your business type. It’s essential to check with the bank you’re interested in to find out precisely what you’ll need to provide.

Step By Step Guide For Opening A Bank Account For A Small Business

Here’s a step-by-step guide for opening a bank account for a small business:

Research your options

Compare different banks and their offerings to find the best fit for your business. Look at fees, interest rates, customer service, online and mobile banking capabilities, and any specialized services or products that may benefit your business.

Gather your documents

Collect all the necessary documents to open a business banks account, such as your business registration documents, Tax ID, Business Plan, personal identification, and proof of your business address.

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Make an appointment

Contact your chosen bank to schedule an appointment to open a business bank account. Some banks may allow you to open an account online, but others may require an in-person visit.

Meet with the bank representative

Attend the appointment with all the necessary documents and be prepared to answer any questions the bank representative may have about your business.

Complete the application

Fill out the bank’s application form and provide all the required documentation. The bank representative will review your application and may ask for additional information.

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Wait for approval

The bank will process your application and may conduct a credit check. Once your application is approved, you will receive instructions on accessing your account and any additional steps you may need.

Fund your account

Make an initial deposit to your new business bank account, if required.

Set up online banking

Set up online and mobile banking so you can manage your account remotely.

Start using your account.

Once your account gets set up, you can use it to manage your business finances, pay bills, and process payments.

It’s important to remember that each bank may have different requirements and procedures for opening a business account. So always check the bank’s website or contact them directly for any additional information or guidance.

10 Best Bank In Canada For Small Businesses

#1. Wise Business Account (Formerly Transferwise)

It’s a good choice because there are no monthly fees and the exchange rates for foreign currencies are cheap. Wise also connects to Quickbooks, so your books and bank information are constantly updated.

The Wise Business account can save money if your business has customers worldwide. It has low transfer fees, and account holders can receive and hold 55 different currencies, which is a big plus if you do business worldwide.

You can connect different currencies to your business debit Mastercard and send money to over 80 countries. It costs six times less than a regular bank and 19 times less than PayPal.

Wise has a simple billing system that lets you pay once, repeatedly, or all at once. You can also connect accounting programs like Quickbooks and FreeAgent to keep your books up to date all the time.

One downside is that there is no checking account, so you can’t use cheques. However, Wise can be used with another business bank account. It is one of the best banks for small businesses.

#2. HSBC Bank Canada

HSBC Bank Canada offers a variety of business banking options, including business accounts, loans, lines of credit, and cash management services. They also have a dedicated small business banking team that provides personalized support and advice. It is one of the best banks for small businesses.

#3. Laurentian Bank of Canada

Laurentian Bank of Canada offers small business banking services, including business accounts, loans, and credit cards. They also have a dedicated small business banking team that provides tailored advice and support. It is one of the best banks for small businesses.

#4. Manulife Business Advantage Savings Account

This is a good choice because you can get a high rate of return on your savings, get to your money quickly, and file your business taxes online easily with Manulife’s online banking platform.

Manulife Bank has everything you need for personal and business banking. The Business Advantage savings account at the bank has one of the best interest rates I’ve seen for savings accounts.

Customers can keep a minimum amount in their savings accounts to take advantage of the high-interest rate.

Manulife doesn’t charge monthly fees, customers can make as many deposits and transactions as they want (for free), and you can move money to any other Canadian bank account.

The fact that it’s easy to pay your business taxes is one of the best things about this business bank account.

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#5. Royal Bank of Canada (RBC)

RBC offers small business banking services, including business accounts, loans, and credit cards. They also have a dedicated small business team that provides tailored advice and support. It is one of the best banks for small businesses.

#6. TD Bank

TD Bank offers a variety of business banking options, including business accounts, loans, lines of credit, and cash management services. They also have a dedicated small business banking website with helpful resources and tools. It is one of the best banks for small businesses.

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#7. Bank of Montreal (BMO)

BMO offers small business banking services, including business accounts, loans, and credit cards. They also have a dedicated small business banking team that provides personalized support and advice. It is one of the best banks for small businesses.

#8. Scotiabank

Scotiabank offers a variety of business banking options, including business accounts, loans, and lines of credit. They also have a dedicated small business banking website with helpful resources and tools. It is one of the best banks for small businesses.

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#9. CIBC

CIBC offers small business banking services, including business accounts, loans, and credit cards. They also have a dedicated small business banking team that provides personalized support and advice. It is one of the best banks for small businesses.

#10. National Bank of Canada

National Bank of Canada has a wide range of business banking services, including business accounts, loans, lines of credit, and cash management services. They also have a dedicated small business banking team that provides tailored advice and support. It is one of the best banks for small businesses.

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Frequently Asked Questions

What are the top banks in Canada for small businesses in 2023?

The top banks in Canada for small businesses in 2023 are
Royal Bank of Canada (RBC)
TD Bank
Bank of Montreal (BMO)
Scotiabank, and
CIBC.

What factors should I consider when choosing a bank for my small business?

When choosing a bank for your small business, consider fees, interest rates, customer service, online and mobile banking capabilities, and any specialized services or products that may benefit your business.

Are there any banks in Canada that specialize in small business banking?

Yes, many banks in Canada have specialized small business banking services, such as RBC, TD, BMO, Scotiabank, and CIBC. These banks offer tailored services and products specifically designed to meet the needs of small businesses.

Are there any fees associated with small business banking accounts?

Yes, there may be fees associated with small business banking accounts such as monthly account fees, transaction fees, and fees for additional services. It’s essential to compare different banks’ prices and understand what you will get charged for.

Are there any interest rates on small business banking accounts?

Many banks offer interest-bearing accounts for small businesses, such as business savings accounts, which offer a higher interest rate than a standard savings account. It’s essential to compare the interest rates of different banks and understand the account’s terms and conditions.

Conclusion

In conclusion, starting and growing a small business in Canada can be a challenging and exciting journey. Choosing the right bank to handle your financial needs is essential to running a successful business.

Based on factors such as fees, interest rates, and customer service, we have compiled a list of the top 10 banks in Canada for small businesses in 2023.