How to choose the best business account or neobank

Choosing the right business account or neobank can feel overwhelming, but it's essential for managing your company's finances effectively.

In France, all for-profit companies are required to open a business account specifically for their SME/business activities.

It's mandatory for entities such as SAS (Simplified Joint Stock Companies), SASU (Single-Member Simplified Joint Stock Companies), EURL (Single-Member Limited Liability Companies), SARL (Limited Liability Companies), and SA (Corporations) to have a dedicated business account.

Your business account's primary goal is to differentiate financial flows from business activities and avoid any accounting or tax mix-ups.

In this article, you'll learn how modern payment institutions fare up against traditional banks, what each can offer, and how to pick the best fit for your business. We'll also cover safety concerns and provide insights into the new financial landscape, ensuring you're well-informed to make the best decision for your company.

It's important to differentiate between bank accounts offered by credit institutions (banks) and business accounts, which in France tend to be regulated by the ACPR and the Bank of France.

Traditional banks serve as financial institutions offering a range of banking services to their customers, but neobanks changed the game with their digital-first approach. Neobanks cater to users who prefer seamless online experiences, often accessed through a mobile app.

To dive deeper into this topic, check out our article on the differences between credit institutions and payment institutions.

Generally speaking, all banks offer fairly similar services to their professional clientele. Opening a business account in a bank allows you to:

• Deposit your share capital
• Get a payment card and a bank ID
• Have a checkbook
• Complement your offer with insurance and management services

Banks typically charge between €20 and €40 a month to open and manage a business account for SMEs. Extra services (that might increase costs) can usually be added to the initial package, such as:

• Contactless payment
• Secure online banking and payments
• Additional or international bank cards
• International money transfers

Also, some banks may grant you a loan to grow your business. These loans mostly finance business growth through the purchase of tangible assets (machinery, equipment) but rarely finance intangible assets or cash flow. Fintech firms are increasingly offering competitive alternatives for such financial services.

Companies seeking a business account outside of credit institutions have an alternative option. Business accounts, often cheaper and more responsive than banks, are gaining popularity among SMEs, freelancers, and startups. These providers give businesses:

• More transparent and straightforward pricing
• Affordable rates (starting at €9/month excluding tax)
• Innovative solutions (accounting management, expense report modules, financial dashboards)
• Much more responsive customer service
• Online services tailored to new businesses

Opening a business account is simple and doesn't require an in-person branch visit.

Neobanks and business accounts also let you open an account for your business without confining yourself with a traditional bank, which can be a lifesaver for those with banking restrictions.

The most important aspect to prioritize is the relationship with your advisor or customer service. It's not about being physically close, but having an advisor who's quick, efficient, and attentive to your needs.

So, while the potential banker's (or advisor's) involvement tends to play the most crucial role, the second factor you should consider is what level of services you require. Typically, an SME manager seeking a business loan will end up turning to a traditional bank.

Managers who want a quick, simple, and efficient business account will likely turn to a neobank or business account. Neobanks and fintech firms, with their focus on user experience and digital convenience, are becoming more and more popular in the business sector.

A neobank will excel in offering current account solutions that are easily accessible through a mobile app. These digital platforms allow consumers to handle their money on the go, making banking more accessible and user-friendly.

By integrating new tech into what's historically only been available at traditional banks, fintech firms can provide a fully end-to-end experience for users, enhancing the way financial institutions serve their clientele.

In any case, it's always important to choose your business account based on the services you need (or will need) in the medium term. Curious about what Qonto can bring to the table? Give our business account a try with a free trial today.

With Qonto, companies can rest assured knowing that their financial needs are met with innovation and efficiency. The ability to deposit funds, manage current accounts, and utilize a mobile app for financial needs makes Qonto a standout choice among professional consumers.