Choosing the right bank and credit cards is essential for the day-to-day running of specific businesses. The traditional incumbent banks and credit card providers are large institutions which tend to move slowly in response to technological advancements. There are tools useful for startups which are frustratingly missing from the services offered by these banks and the inability of these institutions to keep up with the demands of a digital market has led to the formation of startup-centric bank and credit card services.  Here are some of our favorites:

Traditional Incumbent Banks

Brex Cash: Third-party processing of payments incurs fees and may have built-in structural latency. Brex Cash is a business cash management account which runs on newly built core banking infrastructure which, instead of charging transaction fees, rewards its users for transacting through the platform. In addition to receiving points which can be exchanged for cash-back or travel miles, businesses earn a competitive industry leading interest rate on balances.

Mercury: Among the reasons why traditional banks have endured, despite their lack of agility, is their deposit insurance. Mercury offers API access, virtual cards and other tools including real-time cash analytics and programmatic payments for a digital bank account insured by the Federal Deposit Insurance Corporation (FDIC). The bank is built with tech startups in mind and offers business accounts with online features.

Signature Bank (for Chicago Startups): The Chicago-based Signature Bank (which is not affiliated with Signature Bank, New York), focuses on assisting primarily local entrepreneurs. They offer personalised support services to enable business owners to focus on growing their business.

Credit cards

It is generally easiest to get a credit card with the same bank that you have your checking accounts at but there are also some other options.

Brex: The Brex Corporate is specifically crafted to meet the needs of entrepreneurs by offering a variety of features which make conducting business easier for a startup. The credit card does not require personal guarantees, which reinforces the separation of the business from individuals. Additionally, the card offers higher limits, which scale with your business, virtual cards for team members, and an interest-free period of 60 days with no additional fees.

Capital One Spark: There are substantial services and rewards which come with the Capital One Spark Small Business credit card. Extensive account management, employee card functionality and management, 0% fraud liability and travel benefits are among the key features of this card.

In conclusion

The best bank and credit card service for your startup is one that aligns with your needs, goals, expenses and spending patterns. While you’re weighing your options Capital One Spark, Brex, Capital One, and Mercury are all great banks to take a look at.

Curt Mastio
Post by Curt Mastio
May 30, 2024 10:54:04 AM
Curt Mastio started Founder’s CPA in 2017 and currently serves as the Managing Partner of the firm. After obtaining both his Bachelor’s and Master’s degrees in accounting from the University of Illinois in Urbana-Champaign Curt started his career in Big Four public accounting. Shortly thereafter Curt served as the Chief Financial Officer of Storage Squad began his stint as an Adjunct Instructor at Northwestern University’s Farley Center for Entrepreneurship and has been teaching Accounting & Finance to undergraduate students for 6+ years. In his current role Curt oversees strategy, operations, and business development at Founder’s CPA. Further, Curt has experience working directly with 200+ startups and small businesses providing accounting, tax, and outsourced CFO services. His industry expertise lies in the SaaS, Blockchain, Marketplace, and Fintech industries. He has served as a key advisor working directly with startups that range from pre-revenue to companies generating over $30 million dollars a year in revenue. Lastly, he serves a key role working directly with the firm’s clients that have collectively raised over $200 million in venture capital funding to date. Curt is also an active advisor, mentor, and investor in the startup ecosystem. He has facilitated numerous workshops, webinars, and presentations to incubators and other startup-centric organizations. He is also an active mentor for Techstars in both Chicago and Iowa. Outside of his daily professional duties Curt is actively involved with Beat the Streets Chicago and was a founding member of its Young Professionals Board. His efforts in both leadership and community involvement were recognized when he was awarded the Illinois CPA Society’s Outstanding Young Professional Leadership Award in 2020. He was also a panelist at their annual conference in 2022 where he spoke about his experiences starting and operating a public accounting firm. He maintains an active Certified Public Accountant designation that he obtained in 2014. Outside of work, Curt can be found spending time with his friends & family including his dog Rufus. His hobbies include golf, boating, cooking, reading, and attending sporting events & concerts.