10 Alternatives to Business Banking that Help Growth

It's time to kick the banks to the curb.

Contents

    It's no secret that big banks have had a lot of trouble in recent years.

    From bank fees to customer service scandals, big banks have been in the headlines for all the wrong reasons.

    This has led many people to search for alternatives to traditional banking.

    These options offer a variety of features, including low bank fees, high-interest rates, and excellent customer service.

    So if you're looking for an alternative to your current bank, be sure to read on!

    1. Credit unions

    Credit unions are bank alternatives that allow you to bank locally with like-minded people.

    A credit union is a nonprofit bank cooperative owned by its members, who pool their money in order to offer each other loans and other financial services at reasonable interest rates.

    Credit unions generally offer lower fees and stronger customer service than banks do, but they also typically have fewer branches and ATMs available.

    To join a credit union, you must live or work within the area that it serves.

    Most cities have several local credit unions; check around your city for options near you!

    oining will usually require an initial deposit of $50 or more, as well as proof of residence/employment within the boundaries set by the specific union (i.e. a utility bill or pay stub).

    Some notable credit unions include:

    • Navy Federal Credit Union: Serving members of the military, Department of Defense employees, and their families
    • Alliant Credit Union: Open to anyone who lives or works in select Chicago-area counties
    • Bethpage Federal Credit Union: Offers membership to those who live, work, worship, attend school, volunteer, or are related to someone who does any of these things in Nassau and Suffolk counties on Long Island, New York

    2. Online banks

    Online banks offer all of the features and functionality of traditional brick-and-mortar banks, but they're available entirely online - no physical bank branches or ATMs necessary.

    This can be a great option for small businesses that don't have time to visit a bank in person, as well as for those who want to bank on their own schedule.

    Many online banks do not charge monthly fees, and many of them offer competitive interest rates on deposited funds.

    Opening an account with an online bank is usually very simple, involving little more than filling out an application form and providing proof of identity.

    Some notable online banks include:

    • Revolut: A bank that offers a current account, budgeting tools, and a contactless Mastercard
    • N26: A bank with no fees, a free bank card, and the ability to set up direct deposits and recurring payments
    • Ally: An online bank with no monthly maintenance fees and competitive interest rates
    • Mox: A bank that offers a free checking account, no minimum balance requirement, and mobile check deposits
    • Chime: A bank that gives you a percentage of your paycheck up to two days early, no overdraft fees, and a Visa debit card

    3. Neobanks

    Neobanks, also known as “challenger banks” or “digital-only banks,” are bank alternatives that operate exclusively online.

    They differ from traditional online banks in that they typically offer a wider range of services, including savings and investment products, as well as current accounts and debit cards.

    Since neobanks don't have the same overhead costs as traditional brick-and-mortar banks, they're able to offer their customers lower fees and more competitive interest rates.

    Opening an account with a neobank is usually very simple, involving little more than filling out an application form and providing proof of identity.

    Some notable neobanks include:

    • Statrys offers a unique business account experience that is perfect for small businesses. With no minimum balance requirements, Statrys is the perfect bank alternative offering what no banks can give. Multi-currency accounts backed with Forex support.
    • Currenxie offers business accounts in many different currencies. Currenxie is one of the most premier neobanks in Asia.
    • Airwallex is Australia's star-studded unicorn neobank, offering accounts completely online, but in many different jurisdictions.
    • Wise, formerly Transferwise, offers payment accounts in many different countries. With a debit card, you can spend your money easily wherever you're at.
    • Neat is a bank alternative that offers business bank accounts in Hong Kong and Singapore.

    4. Regional banks

    Many small businesses find that a regional bank is the best banking option for them.

    Regional banks are typically smaller than national banks, and they focus their services on specific geographic areas.

    This can be a great option for businesses that are located in or do business in, a particular region.

    Many regional banks offer competitive interest rates on deposited funds and no monthly fees.

    They also often have more flexible lending criteria than national banks.

    Opening an account with a regional bank is usually very simple, involving little more than filling out an application form and providing proof of identity.

    Some notable regional banks include:

    • BB&T: A bank with branches in 15 states that offers small-business checking, savings, and money market accounts as well as term loans and lines of credit
    • TD Bank: A bank with branches along the East Coast that offers small-business checking, savings, and money market accounts as well as term loans and lines of credit
    • Huntington National Bank: A bank with more than 800 branches in Ohio, Pennsylvania, Michigan, Indiana, West Virginia, Kentucky, and Florida that offers business checking accounts
    • PNC Bank: A bank with branches in 19 states that offers business checking accounts as well as small-business loans
    • SunTrust (now Truist): A bank headquartered in Atlanta that has branches throughout the Southeast; it provides a variety of commercial banking services including business accounts.

    5. Community banks

    Community banks are another option for businesses that want a bank alternative.

    Community banks are small, local banks that focus on providing banking services to the residents and businesses in their communities.

    Community banks typically offer very competitive interest rates on deposited funds and no monthly fees.

    They also often have more flexible lending criteria than national banks.

    Opening an account with a community bank is usually very simple, involving little more than filling out an application form and providing proof of identity.

    Some notable community banks include:

    • The Farmers Bank: A bank located in Kentucky that offers business checking, savings, money market accounts, and certificates of deposit (CDs)
    • The First National Bank: A bank located in Missouri that offers business checking, savings, money market accounts, and CDs
    • The First National Bank of Santa Fe: A bank located in New Mexico that offers business checking and savings accounts as well as term loans
    • The Home State Bank: A bank located in Iowa that offers a variety of commercial banking services, including business checking and savings accounts
    • First Federal Savings and Loan Association of Greene County: A bank located in Pennsylvania that offers a variety of commercial banking services, including business checking and money market accounts.

    6. Peer-to-peer lenders

    Peer-to-peer (P2P) lending is a type of crowdfunding that allows businesses to borrow money from individual investors.

    With P2P lending, businesses post a loan request on a P2P platform and interested investors can then choose to fund the loan.

    Interest rates on P2P loans are typically much lower than those offered by traditional lenders, such as banks.

    This is because P2P lenders do not have the same overhead costs as traditional lenders.

    Some notable peer-to-peer lenders include:

    • Lending Club: A leading P2P lender that has funded over $16 billion in loans
    • Kiva: A global P2P lender that has provided over $910 million in loans to date
    • Funding Circle: A leading P2P lender in the United Kingdom
    • Zopa: The largest P2P lender in Europe.

    7. Paypal/Venmo

    Paypal

    Paypal is a payment processor that allows you to accept payments from your customers and pay bills.

    Because it connects directly with bank accounts, you can use it as a bank alternative.

    It also has several money management options, including the ability to consolidate different bank accounts into one online account for easier access and less hassle when paying bills or accepting payments.

    Venmo

    Venmo is another great bank alternative that offers many of the same features as PayPal but without any fees (unless you want them).

    It charges no monthly fee or transaction fees on top of what your bank already charges; just transfer money between banks using this app—that’s all there is to it!

    Simply download the Venmo app onto your phone and connect your bank account.

    It's not quite an alternative, but the additional help certainly changes the game.

    Both PayPal and Venmo offer a great way to manage your money without having to use a bank.

    They both have many of the same features, such as the ability to pay bills, accept payments, and consolidate bank accounts.

    And they are both free to use (unless you want premium features).

    So if you’re looking for an alternative to traditional banking, either of these apps is a good option!

    8. Square Cash

    Square Cash: Square Cash is a great bank alternative for businesses that want to send or receive money quickly and easily.

    You can use it to pay employees, invoice customers, or just split a dinner bill with friends.

    It’s also incredibly easy to use; simply download the app, connect your bank account, and you’re ready to go!

    One of the best things about Square Cash is that there are no fees associated with sending or receiving payments.

    This makes it a great option for small businesses and freelancers who need to move money around quickly and cheaply.

    Square Cash is another great bank alternative that offers quick and easy payment transfers without any fees.

    It’s perfect for small businesses and freelancers who need to move money around quickly and cheaply!

    9. Google Wallet/Apple Pay Cash

    Google Wallet

    Google Wallet is a digital wallet that allows you to store your debit and credit cards, as well as your loyalty cards, in one place.

    This makes it easy to pay for things online or in-store without having to fumble through your pockets or purse.

    You can also use Google Wallet to send and receive money from friends and family.

    And if you have an Android phone, you can use Google Wallet to make contactless payments at participating stores.

    Apple Pay Cash

    Apple Pay Cash is a similar service offered by Apple that allows you to store your credit and debit cards, as well as gift cards, in one place.

    You can also use Apple Pay Cash to send and receive money from friends and family.

    Both Google Wallet and Apple Pay Cash are great digital wallets that allow you to store your debit and credit cards, as well as loyalty cards, in one place.

    This makes it easy to pay for things online or in-store without having to fumble through your pockets or purse.

    And both services offer the ability to send and receive money from friends and family!

    10. Offshore Bank Accounts

    If you’re looking for a more complete banking solution, an offshore bank account might be right for you.

    Offshore banks are located in countries with relaxed banking regulations, which means they offer a wider range of services and products than traditional banks.

    They also tend to have lower fees and higher interest rates, making them a great option for businesses that want to save money on their banking costs.

    If you’re looking for a more complete banking solution, an offshore bank account might be right for you.

    Offshore banks are located in countries with relaxed banking regulations, which means they offer a wider range of services and products than traditional banks.

    They also tend to have lower fees and higher interest rates, making them a great option for businesses that want to save money on their banking costs!

    Back to you

    So there you have it—ten bank alternatives to help you manage your business finances.

    Whether you’re looking for a more affordable way to bank, an easier way to pay bills and invoices, or just a place to store your loyalty cards, there’s sure to be an option that fits your needs.

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