An account intended for business use is often referred to as a commercial account. Often, this term is used to describe an account at a financial institution, such as a bank or a credit union, but that isn’t always the case. Sometimes the term is used to discuss an account with a business as well. For example, some businesses may offer basic accounts for individuals and commercial accounts that have different terms and benefits for businesses.
One of the most common types of commercial accounts is a business checking account. This type of account is used by a business that needs to write checks and may also prove beneficial for businesses that make a large number of withdrawals and need direct deposit and automated withdrawal services. Each bank may set different terms for business checking accounts and charge various fees for banking services.
Some businesses also open accounts that are more focused on saving money than on paying expenses and writing checks. This type of commercial account is referred to as a business savings account. As with business checking accounts, a person may find varying terms and fees at different banks, credit unions and other types of financial institutions.
Some financial institutions may offer more than one type of commercial account in both the savings and checking category in order to allow business owners to choose the account that best meets their needs. For example, a bank may offer both a basic business checking account and a budget account. Often, budget accounts are for businesses that need to write fewer checks or complete fewer transactions. They are more restrictive but may also have lower fees and lower balance minimums.
There are also various commercial account types that are useful for business owners who want to invest and watch their business money grow. For example, a business owner may open a commercial money market account or purchase certificates of deposit for his business. Often, business owners maintain both a checking account and one of these investment-focused accounts at the same institution.
Sometimes a commercial account has nothing to do with financial institutions at all. Instead, a business owner may have a commercial account with another business. For example, a business may sell to both the general public and other businesses. In such a case, it may offer commercial accounts to its business customers. In fact, it may even offer special pricing and terms for commercial accounts, as businesses often buy in bulk or place more frequent orders than individuals.
