Banking for Startups in 2023
In a market downturn, thinking about banking requires a different mindset as it can significantly affect your business. Choosing the right bank with features that cater to your specific needs can help you navigate through tough times. While traditional banks are the most common choice for businesses, neobanks, and fintech banks offer unique features and perks that can be beneficial for startups.
When selecting a bank, ensure that it can connect to other banks and accounting systems for an aggregated view of your finances. Choose a bank that offers multiple options for money movement, has customizable user permissions, and customizable spend controls to ensure your employees stay within their budget. Interest-bearing capabilities can also help you earn more on your deposits.
Embedded financing products such as credit lines, venture debt, and revenue-based financing can help you extend your runway and fuel your growth. Automated or scheduled payments and multi-factor authentication ensure convenience and security. Ensure that the bank you choose is FDIC insured, and consider negotiating or choosing a fee-free bank account.
Perks such as great customer service, rewards programs and bonus offers, introductions to investors and VCs, discounts on software subscriptions, and a network of advisory services can be advantageous in a market downturn. With the right banking partner, your startup can weather the storm and emerge stronger.
Here are some examples of banks you should consider:
BlueVine - Offers online business banking, lines of credit, and invoice factoring services to small and medium-sized businesses.
Tide - Provides business bank accounts, financial management tools, and integrated invoicing solutions for small businesses and freelancers.
Brex - A fintech startup that offers a corporate credit card and financial services for startups, including expense management and rewards programs.
Mercury - Provides banking services, including checking and savings accounts, payment processing, and loans, specifically designed for startups and small businesses.
