Before you can successfully run a business, you’ll need to open a business bank account. While the account is necessary, you shouldn’t blindly accept the charges and costs that come with credit cards or even your bank account. In the instance where you’re unable to eliminate the bank costs, it’s a good idea to work on reducing them.
When you successfully reduce these costs, you’ll be able to generate more profits for your business.
Compare Banks’ Fee Structures Before Settling
It is normal for bank accounts to require users to pay a monthly fee as well as fees for different microtransactions. While it’s a reasonable idea to move towards banks that offer low fees, it’s still good to keep these in mind. So, before you signup with a new bank, it’s a good idea to compare and contrast the fees associated with different banks.
Understand What You’re Paying For
While it may seem at this point that your fees aren’t going away, it’s a good idea to have them explained to you. This saves you from being a victim of unnecessary default services that aren’t necessary. Banks also offer different types of accounts for different purposes so, be sure to find the ideal one for your business.
Reduce Your Transactions
Charges are usually charged based on the transactions that are conducted. If your business makes fewer transactions each month, then your banking fees will be a lot less. So if you can avoid certain transactions, it’s a good idea to do so and just deposit cheques.
Go For Bundled Services
Bundles services that are tied to accounts usually have a reduced account fee. In essence, the total applied fees are much cheaper than usual. Keep an eye out for these and go with one that provides a certain number of free transfers, withdrawals, and even deposits. Internet banking is also a plus when you’re looking for fees.
It should be kept in mind that the number of transactions each month are can easily be forgotten. It’s a good idea to keep that in mind and not pay for packages and tons of extra transactions.
Consider Alternative Payment Systems
If your business is accepting credit card payments, you can look into alternative payment systems like Baanx. This saves you from facing the default point-of-sales machine. These machines are rather costly and some banks have penalties if clients don’t spend a minimum each month. Looking into Yoco or SnapScan is a good idea.
Don’t Use Other Banks’ ATMs
When you use the ATMs of other banks, your bank will charge you a fee for using them. While it doesn’t seem like a big deal, these fees are known for adding up quickly over time. Convenience and accessibility is a huge factor before selecting your bank.
Ensure Your Account Is Never Overdrawn
Banks tend to honor debts even if there aren’t enough funds to cover them. While this helps during the transaction period, you’ll be charged for it later on.
Avoid Additional Cards
Garage cards or additional cards on a business account has a desired set of fees. In some instances extra cards are necessary but they are costly if you’re planning to use them all the time.
Remove Unnecessary Features
Some of the time, add-ons hide in plain sight and they can even be superfluous at times. So, if you’re paying for insurance via this method, it might be a good idea to remove it since there’s a chance that it’s already being covered somewhere else. Additionally, reward programs provide extra savings for your business when they’re properly used.
