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SVB Small Business Banking Review – Is It The Right Bank For You?

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Updated on November 20, 2022 by

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Checking accounts with Silicon Valley Bank (SVB) are perfect for entrepreneurs and small businesses that are just starting out. SVB Edge is a free business checking account for startups. SVB ScaleUp is a business checking account for companies with substantial funding.

It offers startups a business checking account that is fully functional and offers unlimited transactions for a year. It also has no monthly fees and merchant services options for companies that are growing. It features zero fees and no minimum balance requirements for 3 years, a rate of 2% interest on a money market account, as well as a solution that makes it easy to offer merchant services if you want to take credit or debit card payments.

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SVB ScaleUp, which is for fast-growing companies that need money to buy inventory and rent equipment, features a free checking account for new startups and venture-backed businesses. It provides a service that makes banking easy and secure. It offers things like remote deposit capture, payment automation, lockbox services with SVB Transact Gateway, and even fraud prevention. Account holders get 5% off their account maintenance expenses each month, and each month, you get $500 to use towards your account maintenance.

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It lets you sync with different types of accounting and expense management software. You can also use it to seamlessly manage your accounts and get an SVB Innovators Card.

Why Is Silicon Valley Bank Right for You?

Startups who want to extend loans with the flexibility of a bank loan: If you are a young company with an expansion plan and need a quick source of funding, look no further than SVB. We can help you with a combination of growth capital, venture debt, and fixed-rate loans.

SVB gives new business owners the opportunity to avoid paying recurring fees for 3 years by opening an SVB Edge business checking account. This is because startups do not have to pay any fees in order to start their businesses.

It is easy for small businesses to take advantage of these startup banking services. Its team of 75+ business banking experts can guide you through the process of securing funding for new projects. You will also receive discounts when you purchase 50 or more products or services through SVB partners. These include services like Amazon Web Services (AWS), Gusto, and Google Cloud.

Startups who want to take advantage of business cards to get rewards. The SVB Innovators Card, is one of the best business charge cards that has no guarantees. It is for companies that pay their credit cards in full each month, and it will let you rack up 2x the rewards that you would get with a traditional business card. There is no application fee for using this card. It offers as many employee cards for free as you want.

SVB Small Business Banking Review

 

Why Is Silicon Valley Bank Not Right for You?

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SVB still has excellent business banking accounts, but there are limitations to their activities. You may want to check with a different bank for one of the following scenarios.

  1. SVB has excellent business checking accounts, but they charge $50 every month for the next five years. Lili, Axos Bank, and Found are good alternatives for those who are just starting out and want to save money on fees immediately.
  2. Startups that are looking for a big branch network don't fit this bank. It only has 16 branches, so you may want to consider other banks, such as Chase Bank or Wells Fergo.
  3. Businesses want an account that earns interest if you make a purchase on a regularly scheduled basis: SVB does not pay interest on its business checking accounts. Bluevine has a decent APY of 1.5%, as long as you have enough funds in your account to cover the minimum balance.

The Requirements

You'll need to submit your information to Silicon Valley Bank online. You are required to fill out an application with the following information: name, account number, tax identification number (TIN), date of birth, and any additional information that the bank may request.

Those who have beneficial ownership of the account, such as the beneficial owner or its legal representative, will need to show on their driver's license or any other governmental document that they have their name on the account.

You need proof that you trust someone, and that he has signed certain documents that you are required to deliver to the bank.

Conclusion

Silicon Valley Bank offers business accounts to start-ups and venture-backed businesses to help them access startup resources and open a fee-based business account. As you start your company, you might want to upgrade your checking account to the one that enables you to deposit money remotely, through an automated system. You will also be able to control what happens to your money through advanced tools.

SVB's technology integrations with accounting and business software, and the fact that it partners with banks that offer startup discounts, makes it a fantastic choice. Loans to small businesses are great because they can easily fund them to run the business for a long time and achieve growth.

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