Choosing a bank for a startup is a strategic decision that can significantly impact the success of your business. It's important that the bank offers financial management tools such as integration with accounting software, international payments and support for multiple currencies. You should also favour digital solutions that allow you to access accounts and transactions anytime and from anywhere in the world.
If you're planning to launch your own startup and need a bank that's a perfect fit, it's worth highlighting the criteria for selection. Flexibility, speed, ease of management, instant payments, payment and spending limits... Because of its exponential growth potential, this type of company has very specific needs! Here we will look at what characteristics an ideal bank for a startup should have.
Characteristics of an ideal bank for a startup
If you are a future startup CEO, you should take your choice of bank seriously. Here are the characteristics that will help you:
Flexibility: The bank should be able to adapt to the growth of your business, the integration of different stakeholders and the multiple infusions of money (fundraising, customer payments, etc.);
Speed: To effectively support the development of a startup, procedures should be simple and fast;
Management: A bank for startups should include tools to facilitate the day-to-day management of the company, such as the ability to integrate expense reports and/or an accounting management tool;
Payments: With your bank, you and your future employees should be able to make payments that will make management more flexible and harmonious, particularly through the issuance of international debit cards;
International: To support expansion in France and abroad, your bank should allow your startup to store cash in several dozen foreign currencies and send/receive payments in EUR, USD or GBP in just a few clicks;
Digital: Like the products you offer through your startup, your bank should be 100% digital and allow you to remotely manage your expenses and cash receipts;
Cost: As you are just starting your startup, your bank should offer a competitive rate to minimise your monthly costs.
Best Banks and Payment Solutions: The Need for Bank Financing
To sustain their growth and stay competitive, startups most often need funding. But due to the high level of risk inherent in startups, banks almost never finance their development. To finance your startup, there are several alternatives to banks:
- Use your own funds and/or funds from people you know (family, friends, colleagues, etc.);
- Decide to team up with one or more experts whose expertise is needed (e.g. a full-stack developer);
- Approach a private equity fund;
- Applying to a public investment fund;
- Talk about your project on a crowdfunding platform.
But if these recommendations don't suit you, here's a list of the best banks and payment systems in Europe:
- Revolut Business: Revolut Business offers flexible business accounts that support international payments at interbank rates, which is especially useful for startups with global customers. With a user-friendly app, you can track expenses and manage transactions in real time. The bank provides tools to manage your budget and limit employee spending. International card issuance for your team is also available;
- N26 Business: N26 Business is a German neobank that provides free business accounts with cashback on purchases to partially offset expenses. The app is intuitive and integrates with accounting services such as QuickBooks. The bank supports multi-currency transactions and offers tools to easily track finances. It's a great choice for entrepreneurs who value simplicity and functionality;
- Bunq Business: Dutch bank Bunq Business allows you to open up to 25 IBANs to manage accounts in different currencies, which is ideal for international transactions. The bank is known for its environmental policies and the ability to tie each transaction to specific projects. Accounting automation tools are also available, including scanning and expense allocation. The user-friendly app helps you easily manage all financial processes from a single point;
- Qonto: Qonto is a French online bank aimed at SMEs, offering a simple and efficient interface for managing accounts, cards and bookkeeping. The platform supports a multilingual interface, making it convenient for international startups. The bank offers flexible pricing plans that can be tailored to your needs. Automation of accounting processes is also available, saving you time and effort;
- Monzo Business: Monzo Business provides business accounts that allow you to manage your budget and integrate with popular accounting applications. The bank supports the ability to create and send invoices directly through the mobile app. Monzo also offers real-time cash flow tracking tools. This solution is ideal for startups that value mobility and efficiency;
- Starling Bank: Starling Bank is a UK-based bank offering free business accounts that are ideal for startups with limited budgets. The bank supports international payments and integration with business tools such as Xero and QuickBooks. An automatic expense categorisation feature is available in the app for easy data analysis. Starling Bank is also characterised by high levels of security and transparency.
Conclusion: How to choose a bank for a startup
Choosing the right bank for a startup is a key step towards successful business development. Given the specific needs of startups, such as flexibility, speed and international transactions, online banks and payment solutions are becoming increasingly attractive. Carefully evaluate the services offered, rates and integration options to choose the best solution for your business.
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