How to Change Business Bank Accounts: Steps and FAQ

Making the switch to a different business bank account can feel like a big step. But if you find that other providers are offering benefits and features that your current one doesn’t, it might be a worthwhile decision.

Switching your business bank account can open doors to better perks and fewer fees. In this article, we’ll go through the processes of doing so and how Wise Business might just be your perfect fit.

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How to switch your business bank account

To switch your business bank account, you might think it’s as easy as 1-2-3 – choosing a provider, opening an account at another banking institution, and banking as usual. However, making the transition can require some finesse if you really want to do things right. Here are a couple of steps that will help you along the journey.

1. Identify your needs

The best business bank account is one that meets all your business requirements. Start by thinking about what your current account is lacking – are the fees too high and customer service spotty, or are you missing features like invoicing and mobile app capabilities? Write down what you do and don’t like about your current account so you can both maintain and add to the services you enjoy.

2. Research banks and financial institutions

Once you’re clear on what you’re looking for, start researching some local, national, and online banks that cater to these requirements. Compare and contrast their offerings, whether it’s incentives or features specific to small businesses, interest rates, or fees.

If you’re seeking out a traditional banking alternative, look for well-established banks that have sectors geared towards businesses of your size. Alternatively, if you frequently do business internationally, you might want to opt for an online bank that is tailored toward international transactions.

3. Check if your business is eligible

Banks often have specific and varying eligibility criteria for different sorts of businesses to open an account. Especially if the bank you choose requires you to provide documentation for the exact business structure your company operates in, you’ll need to ensure you’ve got the right files on hand.¹ For example, some banks might require ownership agreements or a formal business license.

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4. Open your new account

If you’re eligible and confident with your choice, it’s time to open your new account. For this step, each banking institution will offer very different procedures. Some might only offer in-person options, while others operate entirely online. It’ll typically involve form-filling, providing the necessary documentation, and verifying your identification.

5. Reroute automated payments and deposits

Business accounts usually have automatic payments and deposits associated with them, so you’ll want to make sure that you stop all these processes and link them to your new account. Be sure to contact any suppliers, customers, employees, or clients to let them know of your new banking information.

6. Move your balance

Transfer the funds from your old account to your new one. Make sure you check for any pending transactions or outstanding checks before making the move. You might want to make the transfer through a simple bank-to-bank transfer, use wire transfers in installments, or perhaps another method altogether.

7. Close your old account

If you’re certain everything is settled and running smoothly with your new account, start the process of closing your old business account with your former bank.

Switching to Wise Business?

It's easier than you might think. Take a look at the steps to get started below.

It's also free to register an account for sending funds (you only pay the cross-currency fee), and you don't even have to worry about minimum balance requirements or monthly account fees.

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When should you switch your business account?

There are a few key circumstances under which you might want to consider changing business bank account providers.

• Dissatisfaction with current service – If you’re constantly experiencing issues with the platform or poor customer service, it might be time to look for an alternative. Switching to a bank with strong customer support geared towards businesses can make a world of difference.
• High fees – Banking fees can add up significantly over time, which can affect profits and business growth. If you find yourself consistently paying more fees or hidden fees that you shouldn’t need to, do a cost-benefit analysis and consider switching to a bank that offers better value for money.
• Business growth – As your business evolves, you might outgrow the services of your current bank, especially those that focus more on startups or smaller businesses and don’t have the capabilities to scale with you. Switching to a larger or more specialized bank could provide more attractive options like better loan rates or international services.
• Lack of modern banking tools – Up-to-date modern banking technology is indispensable for modern business. So, if your current bank doesn’t have intuitive online banking, mobile apps, access to financial data, or accounting tools, you might be in need of change to boost your business operations.
• Better business opportunities – Sometimes, it’s all about the grass being greener on the other side. Perhaps another bank is reeling you in with higher interest rates on savings, credit card rewards, or extended business support services, and you want to take advantage of that.

See the Best Banks for Small Businesses >>

How can you transfer a business bank account to a new owner?

If you need to transfer a business bank account to a new owner, the most important thing to have is all the necessary paperwork to show the change in ownership. Whether you’re selling your business or switching to a new owner, you’ll likely need updated business licenses and legal documents such as articles of incorporation or partnership agreements.

The new owner will also need to provide their own identification and personal information. In some cases, the bank might need to close the account entirely and open up a new one in the name of the new owner.

Is it hard to change business bank accounts?

Just like with personal bank accounts, switching banks can be an intimidating process. After all, you’ve likely banked with your current institution for some time and have all your funds and transactions tied up there. While it might seem difficult at first, the process of changing your business bank account doesn’t have to be.

While you’ll have to do your research, get organized, and contact support for help if needed, remember that all this careful planning can make the switch simple. Some banks even offer “switch kits.” For example, FCB Banks offers a Business Banking Switch Kit that has everything from a small business organizer to keep track of what information has been switched to a Payroll Processing Change Request to update your payroll account information.²

Benefits of a Wise Business Account

For businesses looking for a suitable bank for international transactions, Wise Business is a solution for businesses of all sizes. From holding a range of currencies to making local transactions, Wise has a broad array of features designed to simplify your experience.

Spend and receive like a local

After paying a one-time fee, Wise Business offers local account details for receiving payments in 9 major currencies. That means you can pay and get paid just like you’d be transferring money in that specific country.

You can break free from geographical constraints, bypass international transfer fees, and make your business more accessible to clients around the world.

Receive money faster

No more waiting for 5 or more business days to receive money from clients – with Wise, you can receive money in up to 2 business days – sometimes even in seconds or hours.

Save on costs and avoid hidden fees

Wise is committed to saving your business money, with a low-cost account with a one-time fee and a transparent fee structure. You’ll know exactly what you’re paying for, with no hidden charges to worry about.

Simplicity and user-friendly interface

The Wise Business platform is straightforward to navigate, with easy account setup and management coupled with an intuitive interface.

Looking to operate your business with less fees?

Get a Wise Business account >>

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