Novo vs NorthOne vs SVB — Which Is the Best Checking Account for Your Small Business?

NorthOne vs Novo vs SVB — OR, how about relaxing on the beach
Novo vs NorthOne vs SVB — OR, how about relaxing on the beach

Why Small Business Owners Need a Business Bank Account

Your business might seem small now, but planning for a brighter future includes keeping your business transactions separate from your personal transactions. With a business bank account, you will be able to keep track of your business expenses and income separately while also being able to take business loans if needed.

Factors to Consider While Choosing a Banking Partner

Choosing a reliable banking partner is about having trust in their services and building trust with your brand. Before choosing your banking partner, consider the following factors that could impact your business finances in the long run.

Services

Most banks offer services like a savings account, checking account, debit/credit card, checkbook, employee accounts, etc. Analyze your business needs and figure out what services you are looking for and see if your preferred bank offers these.

Online Banking

In this digital era, it is important to have access to your finances at your fingertips. With online banking, you can manage your finances, make transactions and all in all avoid unnecessary human interactions for your banking needs.

Global Reach

The internet has made the world smaller. For small businesses that have a global audience, having relevant payment options, currency exchange processes and customer support in place becomes a necessity. This can ensure that your products or services are not just visible but also accessible worldwide.

Experience in Your Industry

Certain banks are known for their services catering to specific industries. By working with similar customers, banks can easily identify pain points in the industry that they can proactively help to overcome. They also understand the market a lot better and can help your business with relevant advice.

Loans

As a small business, you might require a small business administration (SBA) loan at some point. While comparing various bank offerings, look for banks that offer lending services and compare their interest rates, fees as well.

Fees and Perks

When you have multiple banks to choose from, compare the various clauses like service charges, minimum balance, overdraft fees, transaction fees, etc. Also, look at what perks or incentives that they offer to small businesses.

Best Banks for Small Businesses

When you are looking to open a business checking account, the question arises: which bank to opt for? There are multiple options to choose from like Novo, NorthOne, SVB, BlueVine, Chase, Radius Bank and Wells Fargo. Let’s look at the top 3 among these that I have personally tried, which are Novo, NorthOne and SVB.

Novo — Small Business Banking

Novo is a banking platform that is designed to cater to freelancers, entrepreneurs and small business owners. The platform is integrated with their banking partner, Middlesex Federal Savings, which takes care of the banking side while Novo provides the platform and interface to provide you with a smooth banking experience. With Novo, you can create a checking account easily and securely within minutes!

Pros of Novo

Easy Setup: Setting up a Novo bank account is very easy as you can easily link to any existing accounts and transfer funds between them.

Cons of Novo

Only Electronic Checks: The Novo platform is built to be completely digital, and thus only electronic check deposits are allowed and paper checks are not accepted.

NorthOne — Banking for Small Businesses & Freelancers

NorthOne is another similar banking platform that also caters to small and medium-sized businesses. They provide a simple platform that is built to help you save time and money.

Pros of NorthOne

Low Monthly Fees: You can avail all the benefits of a NorthOne business account for the low fee of $10 per month.

Cons of NorthOne

No Physical Branches: As a digital bank, NorthOne does not have any physical branches that you can visit.

Silicon Valley Bank — Startup Banking (SVB)

Silicon Valley Bank is one of the largest banks in the United States. While most of SVB’s customers and assets are in large corporations, a good section also caters to startups.

Pros of SVB

No Fees for up to Three Years: For early-stage startups, SVB offers a free checking account with low-interest rates to help keep them afloat for the initial years.

Cons of SVB

Account Opening Process Takes Time: It can take a few days to complete the process of opening an account with SVB, while most of the other banks allow you to create an account online within minutes.

Novo vs NorthOne

Let’s have a look at how Novo’s services stand against NorthOne’s offerings.

Novo vs SVB

When comparing Novo with SVB, you can see why Novo stands out as a better contender.

NorthOne vs SVB

NorthOne and SVB are also poles apart with their offerings. Let’s have a look.

Final Thoughts

Every startup has different needs. Gauge the pros and cons of all business banking solutions to know what fits your business needs. While some may offer no monthly fees, others may offer limitless transactions. Perks like interest rates, no minimum balance or ease of use should also be considered while choosing your banking partner.

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