Having a business bank account is required to take advantage of business financing products. If you have not set up one, here is a simple guide on how to open a business bank account:
The first thing you need to do is to prepare all the necessary documents before going to a business bank nearest you. These documents are fixed across all types of businesses. Prepare two of the following documents:
- Canadian permanent residence card
- Passport (of any nationality but preferably Canadian)
- Health card
- Canadian Military identification card
- Birth certificate
While these are the most common, most banks ask for more documents before opening the business account.
Check on your nearest bank. These following banks offer business account openings:
- National Bank of Canada (NBC)
- BMO
- CIMB
- RBC
- TD Bank
- ScotiaBank
It is also a good thing to note that some banks, like CIMB, offer a variety of business accounts. Plus, it is best to know the following before deciding which bank you would open your business account:
- Monthly fees
- Allowed monthly deposits (cash and cheques)
- Allowed monthly transactions
Upon visiting the bank, present all the documents, both original and photocopy, and sign all the documents. The bank representative will process your application and should give you further instructions before leaving the bank. Usually, they will inform you via phone call or mail about your application status.
Once you have your business bank account, you can now start making business loans and build your business credit score.