Business Financing

The 10 Best Banks for Small Businesses in 2025

By FundThrough

Key Takeaways:

Key Features to Look for in a Small Business Bank: Small business owners should prioritize customer service, security, competitive rates, and comprehensive features like checking, savings, loans, and mobile banking capabilities when choosing a bank.

Types of Banks: The article compares neobanks, national banks, regional banks, and credit unions, emphasizing their suitability based on business needs, such as tech-savviness, access to branches, or personalized service.

Bank Choices Based on Business Life Cycle: For startups, neobanks and credit unions offer low fees and basic services, while growth-stage businesses benefit from regional and national banks that offer financing options and comprehensive products.

Top Banks for Small Businesses: The article ranks 10 banks, highlighting their strengths like Chase for full-service offerings, BlueVine for high-yield checking with no fees, and Mercury for digital-first solutions ideal for startups.

Alternative Financing Solutions: Invoice factoring is presented as a valuable option for bridging cash flow gaps, especially when traditional bank loans or credit line increases are not feasible, offering a debt-free alternative to securing funds.

Choosing the right bank for your small business can be overwhelming. With so many options, how do you know which one fits your needs? Small business owners need a banking partner that supports their growth, simplifies financial tasks, and offers personalized guidance.

Here’s a detailed look at the best banks and how to choose the right one for your business.

What to Look for in a Small Business Bank

Before jumping into the top banks, consider the features you need from a banking partner. Here’s what you should look for as a business banking customer:

Customer Service: Do they provide personalized support or assign you a banker who understands your business needs? Do they have a strong approval rate for small businesses or are they more focused on their larger clients? Excellent customer service will save you headaches.
Security: FDIC insurance is a given. For online banking portals and apps, 256 bit encryption is standard, as is two-factor authentication.
Competitive Rates: Low fees and competitive APYs can make a huge difference for small businesses with thin margins.
Fees: What hidden fees come with the products you’re considering? Monthly service fees, transaction fees, and overdrafts add up.
Features and Financial Products: Do they offer checking, savings, lines of credit, small business loans, equipment loans, debit cards, direct deposit, and/or merchant services tailored for businesses? A one stop-shop for all your financial needs will save you time and trouble.
Mobile Banking: A robust app helps ensure you can manage your finances from anywhere. Many mobile banking apps have limited, basic functionality. Ensure you can carry out all the tasks you need to while you’re on the go, like mobile deposits.
Convenience: Consider branch locations or ATMs and online accessibility.

Which Type of Bank is Best for Your Small Business?

Banks serve businesses in unique ways based on your growth stage and needs for additional services. Here’s how the types of banks compare:

1. Neobanks (Online Banks)

Best for: Tech-savvy entrepreneurs who want low fees and online convenience.
Pros: Fewer fees, high APYs, 24/7 access.
Cons: Limited or no physical locations or ATMs.

2. National Banks (Traditional Banks)

Best for: Established businesses needing a broad range of banking products.
Pros: Widespread branches, expansive service options like business credit cards and business loan options, easy access to ATMs.
Cons: Higher fees compared to smaller banks or credit unions; higher rejection rate for small businesses, especially if they’re new.

3. Regional Banks

Best for: Businesses seeking more personalized customer service while still enjoying broader features and essential tools.
Pros: Local expertise, easier access to senior representatives.
Cons: Fewer branches and ATMs nationwide.

4. Credit Unions

Best for: Businesses with basic banking needs that value relationships.
Pros: Lower fees, better APYs for deposits.
Cons: Must qualify for membership and can have outdated security and digital tools.

Banks Based on Your Business Life Cycle

Banks for Startup Phase: Neobanks and credit unions are excellent because of low fees and competitive solutions for basic needs.
Banks for Growth Phase: Regional banks and national banks offer financing options, lines of credit, and growth-oriented products.
Banks for Maturity Phase: National banks provide advanced financial products, comprehensive solutions, and international reach for mature businesses.

Best Banks by Business Need

Funding Speed: Neobanks like BlueVine provide same-day funding solutions for cash flow.
Online Banking: Mercury offers a seamless online-first experience.
Lines of Credit and Loans: Chase is a top choice with flexible business credit products and easy access to branches.
Checking Accounts: Wells Fargo offers a competitive business checking account structure with an extensive ATM network.

Pro Tip: Need immediate cash without traditional banking hoops? Invoice factoring provides instant cash flow by paying your oustanding invoices early–ahead of net terms

How Invoice Factoring and Bank Financing Work Better Together

Many small business owners and finance pros automatically turn to banks when they need working capital – but they aren’t your only option. Even after you have an established banking relationship, you might find yourself facing the occasional cash flow gap. Invoice factoring can work as a supplement to your bank in the following ways:

If you have a low interest bank loan, but need short-term funding beyond the loan amount. With FundThrough, you can choose which invoices get paid early with no minimums after your first funding. Get a quick boost same-day funding as needed (after initial setup and approval)
If you’re denied a raise on your line of credit. If you’ve jumped through the hoops to get more funding, but got rejected, invoice factoring unlocks access to money you’ve already earned.
Taking on more debt isn’t a good idea for you right now. If you’re already highly leveraged, invoice factoring is a sensible solution because it’s the sale of an asset – your outstanding accounts receivable – and therefore isn’t debt.
You have a timely opportunity that requires upfront funding. If you win a large contract that will grow your business, you’ll need working capital quickly to deliver the service or fulfill the order. In these situations, you won’t have time to wait on the updating your financials and going through the application process for a bank loan or line of credit.

How FundThrough Compares to Banks

See which option will best meet your needs. In Q4 2024, nearly 76% of small business owners who applied for funding chose non-bank lenders over traditional banks, up from 73% in Q3 2024 and significantly higher than the 61.5% reported in Q4 2023. This indicates that alternative lending is becoming increasingly important for funding small businesses.

	FundThrough	Banks
Funding speed	Days	Months
Approval time	Days	Months
Funding limits	Unlimited*	Depends on creditworthiness
Hidden fees	No hidden fees	Origination fees, annual fees, etc.
Debt-free funding	Yes	No

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The 10 Best Banks for Small Businesses

Here’s our curated list of the top small business banks in no particular order:

1. Chase

Pros: Extensive branch network, top-rated business credit cards, solid payment processing tools, strong endorsement from small business owners.
Cons: Fees on many services, including checking.
APY: 0.01% is standard; 0.02% is their relationship rate for checking and savings accounts
Best for: Businesses needing physical locations and comprehensive services.

2. BlueVine

Pros: Bluevine Business Checking has a high APY of 1.5% (if you qualify), online-first banking, no monthly fee on standard business checking account.
Cons: No physical branches.
APY: 1.5% on balances up to $250,000.
Best for: Businesses that prefer digital-first fintech banking.

3. Mercury

Pros: Perfect for startups, no account maintenance fees, robust digitized dashboards.
Cons: No lending products except the IO Credit Card; no APY on business checking or savings accounts.
APY: Up to 4.47% if you qualify for Mercury Treasury, their business cash management product that enables you to invest in low risk mutual funds or put cahs into certificates of deposit.
Best For: Startups and tech-based industries.

4. Arvest

Pros: Free small business checking available, a wide range of loan options including real estate and agriculture loans.
Cons: No physical locations outside of Kansas, Oklahoma, Missouri, and Arkansas, monthly fees are difficult to waive.
APY: 0.25% on savings accounts
Best for: Small businesses in the South and Midwest seeking loans.

5. Relay

Pros: Manage cash flow effectively with Income Overview; no account or overdraft fees; no minimum balance requirement.
Cons: While they offer a credit card, loans and lines of credit aren’t available.
APY: Up to 3.03% on savings accounts
Best for: Businesses needing built-in cash flow management tools.

6. Wells Fargo

Pros: National presence, significant offerings for small businesses, and robust app features.
Cons: Fees for excess transactions and monthly maintenance fees for all checking account options. If you don’t want to keep track of your number of transactions per month, you’ll need to find an option with unlimited transactions.
APY: 0.01% for savings accounts.
Best For: Businesses in their growth phase that need access to a broad set of services.

7. Bank of America

Pros: Business Advantage Relationship Rewards program, seamless integrations with QuickBooks and Zelle, offers SBA loans and merchant services
Cons: Monthly fees can be hard to waive without a high balance
APY: 0.01% (can vary with account type)
Best for: All-around small business banking with strong digital tools.

8. Capital One Spark Business

Pros: Excellent business credit cards with rewards, online-focused business checking
Cons: Limited physical branch locations
APY: 0.20% on Spark Business Checking (as of 2025)
Best for: Small businesses needing credit card flexibility and digital banking tools.

9. U.S. Bank

Best for: Midwestern businesses or those needing SBA loans.
Pros: Strong SBA 7(a) loan support, access to business payment solutions
Cons: Limited presence in some U.S. regions
APY: Up to 0.05% depending on the account tier
Best for: Midwestern businesses or those needing SBA loans.

10. TD Bank

Pros: Weekend branch hours, specialized medical and legal practice accounts
Cons: Not ideal for digital-only businesses
APY: 0.01%–0.03% depending on account type
Best for: East Coast businesses wanting extended hours and strong customer support.

Business Banking Comparison Table (2025)

Here’s a quick snapshot of how some of the top small business banks reviwed stack up on key features to make your comparison easy.

Bank	Monthly Fees	APY (Checking/Savings)	SBA Loans	Credit Cards	Best For
Chase	$15 (waivable)	0.01% / 0.02%	✅ Yes	✅ Yes	Full-service, nationwide access
BlueVine	$0	1.5% (checking)	❌ No	❌ No	Digital-first, high-yield checking
Mercury	$0	0% / 4.47% (Treasury)	❌ No	Limited	Startups, SaaS, eCommerce
Bank of America	$16 (waivable)	0.01%	✅ Yes	✅ Yes	Traditional services + integrations
Capital One Spark	$0–$35	Up to 0.20%	❌ No	✅ Yes	Credit cards, online banking
U.S. Bank	$0–$20	Up to 0.05%	✅ Yes	✅ Yes	SBA loans, Midwest-based businesses
TD Bank	$10–$25	0.01–0.03%	✅ Yes	✅ Yes	In-person banking on East Coast
Relay	$0	Up to 3.03% (savings)	❌ No	✅ (limited)	Cash flow visibility and no fees
Wells Fargo	$10–$30	0.01%	✅ Yes	✅ Yes	Growing businesses needing full suite

FAQs on Choosing a Bank for Small Business

Which bank is best for small business accounts?

Chase Bank is best for small business accounts due to its nationwide presence, multiple business checking options, and integrated merchant services. Bank of America also offers strong small business features, including rewards and accounting integrations. Choose based on your business size, cash flow needs, and preferred digital tools.

What is the best bank to use for an LLC?

Chase is the best bank for an LLC due to its flexible business checking, online banking tools, and easy LLC account setup. Wells Fargo and Bank of America also offer tailored LLC features. Choose based on fees, branch access, and integrations with accounting software like QuickBooks.

Is Chase good for small business?

Chase is good for small business because it offers multiple business checking accounts, low minimums, mobile banking, and integrated payment solutions. Its nationwide branch access and support for credit and lending make it a strong choice for startups and growing businesses.

Can I open a business bank account online?

Yes, you can open a business bank account online through most major banks. Requirements typically include a valid business license, employer identification number (EIN), and personal identification. Some banks may require an in-person visit later for verification or documentation, depending on your business type.

What documents do I need to open a business account?

To open a business account, you need a government-issued photo ID, your employer identification number (EIN), business license, and formation documents like articles of incorporation or partnership agreement. Some banks may also request your business’s operating agreement or proof of address.

Best banks for online businesses?

The best banks for online businesses include Mercury, Relay, Bluevine, Novo, and Chase. Mercury and Relay offer no monthly fees and easy integrations. Bluevine provides high-yield interest on balances. Novo suits freelancers and startups. Chase offers traditional banking with robust online tools and nationwide access.

Can I use a personal account for my LLC?

You should not use a personal account for your LLC. Doing so can blur the legal distinction between you and the business, risking personal liability. Most banks require a separate business account to maintain LLC protection and comply with tax and regulatory requirements.

How We Chose the Best Banks for Small Business

We evaluated banks based on features like:

Fees: Understanding the total cost that comes with a particular bank helps you make the most informed decision, while allowing you to put the most funds towards business growth and innovation instead of banking expenses.
APYs: Opting for banks that offer high APYs on business savings accounts means your idle funds earn you more money–and for small businesses, cash flow is king.
Customer service: Questions and issues are bound to come up with any banking partner from time to time. Good customer service ensures any issues are resolved quickly. This is critical since your time is in short supply.
Accessibility to small businesses: Many banks make it difficult for small businesses to get approved. Choosing a bank that prioritizes small business clients means gaining access to tailored services, special offers, and expert advice that support your growth and success.
Funding speed: Banks have a reputation for moving slowly with application processes that can take months. Small businesses often don’t have that kind of time. A bank known for swift funding processes can be instrumental in capitalizing on opportunities, managing cash flow more effectively, and reducing the stress of waiting for financing.
Online convenience: Banks with top-notch online platforms and mobile apps ensure you can manage your finances seamlessly from anywhere while ensuring strong security for your funds and information.
Features and Tools: In 2025, cash-flow tools are projected to reach at least 50% of the small-business market, with major financial institutions incorporating these tools into their platforms, making these offerings increasingly relevant.

Researching customer reviews and analyzing expert rankings also guided our choices to ensure relevancy.

Final Thoughts

Selecting the best small business bank is a decision that shapes your company’s growth. Whether you’re just starting out or scaling new heights, having a reliable financial partner is crucial.

Want instant cash flow to complement your business banking? Try invoice factoring with FundThrough and get paid on your invoices now.

See if you’re pre-qualified in minutes