What's Next? Online Banks. This is not your father's checking account. Today's online business banking services do the work for you so you can get back to business as usual.
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Online banking started as and continues to be primarily aconsumer-targeted service, but the vital business banking sector isincreasingly becoming a focus for banks big and small. Ifyou're one of the millions of start-ups considering using anonline bank, it can be difficult to decide which one of the local,regional or national banks will be best. In the table below, wemake that choice a little easier by comparing and contrasting keyfeatures of the online offerings of some of the nation'sbiggest banks.
You'll see that you can do a lot of banking-probably farmore than you would imagine-using only your PC and an Internetconnection. And if you don't see what you need in the way ofonline access to banking services and information, be patient: JohnHagerty, vice president of e-business applications at Bostonresearch firm AMR Research Inc., says banks are preparing to offeronline services that simply couldn't have existed before theInternet.
Can you imagine a bank that not only handles your checkingaccount, but also supplies you with a third-party-hosted Web siteand e-commerce software? That's already here. Before long, saysHagerty, banks that find instant financing for your customers'e-purchases, using online credit auctions to make sure yourvaluable customers get the best deal available, will becommonplace. "This stuff is just starting," he says."Banks are realizing they can either be a commodity, or theycan help make markets. Those that have foresight are choosing tofacilitate commerce as opposed to just being there."
So here's our list. Note that basic business bankingservices are free at all these online banks, with occasional extrafees charged in some cases.
Mark Henricks, author of Business Plans Made Easy(EntrepreneurPress) and Mastering Home Networking(Sybex Inc.),writes on business and technology issues.
Bank Listing
Name/Web Site Overview | Account Information &Management | Online BillPayment | Online LoanApplications | Other Services |
| Chase ManhattanBank The site is well-designed and easy to navigate, in part because itis small and offers a modest range of services. | . View account transactions for checking, creditcard, line-of-credit and other accounts. . Transfer money between accounts. . Business account with only one signer can be linked topersonal accounts. | . Free unlimited bill payment. . Payroll Payment Service for $10 a month. . Tax Payment Service ($5/month) lets you electronically payfederal excise, unemployment, income tax withholding and corporateincome taxes. | None available. | . Links from the home page take you to PowerPaythird-party online payroll service and eWEBuilder Web sitecreation, hosting and e-commerce service. . Alert warns you to transfer or deposit money as neededbefore making a scheduled payment. . In some states, Quicken, Quickbooks and Microsoft Moneyusers can bank online for additional fees. |
| WellsFargo As befits a bank that is both the nation's largestsmall-business lender and perhaps its leading online bank, WellsFargo's Resource Center for Small-Business Owners offers farmore than the usual online bank. It features a wide array of onlinefinancial tools, online shopping and more-both free and for-fee-inaddition to the usual financial services. | . View account transactions for checking, creditcard, money market and other accounts. . Transfer funds between accounts. . Order photocopies of cancelled checks and past statementsonline. | . Free bill payment with a minimum balance. . ExpressPay service, available in most areas for $7.50/monthplus processing fees, handles payroll preparation, tax payments andfilings, and it direct-deposits employee paychecks. ExpressPay Plusoffers more sophisticated features, such as filings for all 50states . No payment service available for federal, state or localtax payments. | Online applications are available for a range offinancing options, including revolving credit lines, term loans,business credit cards, equipment and vehicle purchases and SBAfinancing for up to $1.5 million. | . Change addresses and order new checkbooks,traveler's checks, cashier's checks and foreign currencyonline. . Several useful online tools, such as loan calculators,retirement planners and debt consolidation planners allow you toenter your information and perform calculations online. |
| Citigroup/Citibank Bizzed offers what you'd expect from the world's largestfinancial services conglomerate, namely, a full range of financialservices, online tools, news and information, and more. Its hip,interesting look is a welcome surprise. | . Business banking via Business Access, offered byBizzed's Citibank parent. Note: Free Business Access softwaremust be downloaded and installed. . View account transactions for checking, savings, credit andother accounts. . Transfer funds between accounts. . Open new money market and certificate of deposit accounts.Stop payments of checks online. | . Free bill payment. . Send domestic and international wires transfers in U.S. orforeign currencies. . Pay taxes through tax payment module using bill payment orwire transfers. | Online applications can be completed in as littleas 10 minutes for credit cards, credit lines, home equity loansand, through Citigroup's Travelers subsidiary, businessinsurance-and Travelers promises 24-hour turnaround onapprovals. | . There's an impressive assortment of tools tohelp you set up your business for e-commerce, ranging from links toWeb site hosting companies to tools to help you set up a Web sitehost and get your URL registered with major search engines. . Many services are offered at discounts to Bizzed users.There are also many how-to guides on topics from hiring to findingventure capital. |
Bankof America | . View transactions for checking accountsonly. . Transfer funds, get daily status reports and orderstatement and check copies. . If you're the only signer on a business account, youcan link with personal accounts. . Employees who register can also get information aboutearnings and withholdings and even set up their own directdeposits. | . Online bill payment is available only if you useManaging Your Money financial software and pay a monthly fee of$5.95. . The online payroll processing module is exceptionally easyto use. . Manage approvals for invoices, time sheets, expensereports, purchase orders and even employees' requests for paidvacations. . Get insurance quotes and shop for office equipment andsupplies. | . Apply online for installment loans, creditlines, business credit cards, mortgages, lease financing and evenfactoring. | . This site provides an unusually strong set ofcommunications tools for your company. You and your employees cansee company directories; view schedules of company events; createto-do lists; fill out expense reports, invoices and other forms;initiate purchase orders; and track payments. Access to all of itis controlled by title and responsibilities. . Automatic e-mail updates and reports facilitate sendinginformation back and forth. |
