Unlock Your Business Potential: A Comprehensive Guide to BMO Small Business Accounts

Unlock Your Business Potential: A Comprehensive Guide to BMO Small Business Accounts

Starting and growing a small business is an exciting journey, but it comes with a lot of responsibilities. One of the most fundamental steps is setting up a dedicated business bank account. It’s not just about keeping your personal and business finances separate (though that’s crucial!); it’s about having a financial partner that understands your unique needs and helps your money work harder for you.

If you’re considering a BMO (Bank of Montreal) small business account, you’ve come to the right place. This long, detailed, and easy-to-understand guide will walk you through everything you need to know, from the types of accounts available to the digital tools that can streamline your operations.

Why Choose BMO for Your Small Business Banking?

BMO is one of Canada’s oldest and largest banks, offering a wide range of services to individuals and businesses alike. For small business owners, choosing a bank like BMO can provide a sense of security and access to extensive resources.

Here are some compelling reasons why BMO might be a good fit for your small business:

• Established Reputation: BMO has a long history of serving Canadian businesses, building trust and expertise over generations.
• Diverse Product Offerings: Beyond just chequing and savings accounts, BMO offers a suite of financial products tailored for businesses, including credit cards, loans, lines of credit, and payment solutions.
• Convenient Access: With a vast network of branches across Canada and robust online and mobile banking platforms, you can manage your money whenever and wherever you need to.
• Dedicated Support: BMO provides business advisors who can offer personalized guidance and help you navigate your financial options.
• Digital Innovation: They invest in user-friendly digital tools designed to simplify day-to-day banking for busy entrepreneurs.

Understanding BMO Small Business Chequing Accounts

Your business chequing account is the heart of your daily financial operations. It’s where your revenue comes in, and your expenses go out. BMO offers different chequing plans designed to suit various business sizes and transaction volumes. The key is to choose a plan that matches your business’s activity level to avoid unnecessary fees.

Let’s break down the common types of BMO business chequing plans:

1. BMO Basic Business Plan

• Who it’s for: Ideal for new businesses, sole proprietorships, or very small businesses with low transaction volumes.
• Key Features:
  • Lower Monthly Fee: Generally the most affordable option.
  • Limited Included Transactions: Comes with a set number of transactions (e.g., 10-15) per month. Transactions beyond this limit will incur a per-item fee.
  • Basic Services: Access to online banking, mobile banking, and essential services like bill payments and Interac e-Transfers (fees may apply for e-Transfers depending on the plan).
• Consideration: If your business grows quickly and your transaction volume increases, you might outgrow this plan and start paying more in excess transaction fees.

2. BMO Business Builder Plan

• Who it’s for: Growing businesses with a moderate number of monthly transactions. It’s a step up from the Basic plan, offering more flexibility.
• Key Features:
  • Higher Included Transactions: A significantly larger number of transactions included (e.g., 40-70) compared to the Basic plan.
  • Moderate Monthly Fee: A higher monthly fee than the Basic plan, but often more cost-effective if you regularly exceed the Basic plan’s limits.
  • Enhanced Services: Often includes a certain number of Interac e-Transfers or other digital services without additional fees.
• Consideration: This plan aims to provide a balance between cost and transaction volume for businesses that are past the very initial stages but not yet high-volume.

3. BMO Unlimited Business Plan

• Who it’s for: Established businesses with high transaction volumes and those who prefer a predictable monthly banking cost.
• Key Features:
  • Unlimited Transactions: As the name suggests, you get unlimited electronic and often in-branch transactions for a flat monthly fee. This is great for peace of mind.
  • Higher Monthly Fee: This plan has the highest monthly fee, but it can be the most economical option if your business generates a large number of transactions.
  • Comprehensive Services: Typically includes unlimited Interac e-Transfers, access to advanced online banking features, and potentially other benefits.
• Consideration: While the monthly fee is higher, the predictability and freedom from per-transaction charges can be a significant advantage for busy businesses.

Important Note: The exact number of included transactions, monthly fees, and specific features can change, so always refer to the official BMO website or speak with a BMO business advisor for the most up-to-date information.

Beyond Chequing: BMO Small Business Savings Accounts

While your chequing account handles day-to-day operations, a dedicated business savings account is essential for managing your business’s financial health. It allows you to:

• Set Aside Funds: Save for future investments, tax payments, emergency funds, or specific projects.
• Earn Interest: Your money can grow while it sits there, even if it’s a small amount.
• Separate Funds: Keep your operational cash separate from your long-term savings.

BMO offers various types of business savings accounts, such as Money Market accounts or interest-bearing savings accounts, each with different interest rates and accessibility features. Discuss your savings goals with a BMO representative to find the best fit.

Essential Digital Tools for BMO Small Business Clients

In today’s fast-paced world, digital banking is no longer a luxury but a necessity. BMO understands this and provides robust online and mobile tools to help you manage your business finances efficiently.

• BMO Online Banking for Business:

  • 24/7 Access: Manage your accounts from anywhere, anytime, using a computer.
  • View Balances & Transactions: Easily see what’s coming in and going out.
  • Pay Bills: Set up one-time or recurring bill payments to vendors and suppliers.
  • Transfer Funds: Move money between your BMO accounts or to other financial institutions.
  • Interac e-Transfer: Send and receive money securely with just an email address or phone number.
  • eStatements: Access your bank statements digitally, reducing paper clutter.
  • Financial Management Tools: Some plans offer advanced features for cash flow management and reporting.

• BMO Mobile Banking App:

  • Banking on the Go: Access most of the online banking features directly from your smartphone or tablet.
  • Deposit Cheques: Use your phone’s camera to deposit cheques quickly and easily.
  • Alerts & Notifications: Set up custom alerts for account activity, keeping you informed.
  • Find Branches & ATMs: Locate the nearest BMO branch or ATM when you need in-person service or cash.

These digital tools are designed to save you time, improve accuracy, and give you greater control over your business finances, allowing you to focus on what you do best: running your business.

Beyond Accounts: Other BMO Small Business Solutions

BMO offers a comprehensive suite of financial products and services that can support your business at every stage of its growth. These solutions go beyond basic banking and can significantly impact your operational efficiency and financial stability.

• BMO Business Credit Cards:

  • Manage Expenses: Keep business expenses separate from personal ones.
  • Build Credit History: Establish a credit history for your business, which can be crucial for future financing.
  • Earn Rewards: Many cards offer cashback, travel points, or other rewards on business spending.
  • Improve Cash Flow: Provide a short-term line of credit for immediate needs.

• Business Loans & Lines of Credit:

  • Capital for Growth: Fund expansion, equipment purchases, inventory, or working capital.
  • Flexible Options: BMO offers various types of loans and lines of credit tailored to different business needs and repayment structures.

• Merchant Services (Payment Processing):

  • Accept Payments: Process credit and debit card payments from your customers, both in-store and online.
  • Seamless Integration: BMO partners with payment solution providers to offer integrated systems that make accepting payments easy and secure.

• Payroll Services:

  • Simplify Payroll: Streamline employee payments, tax remittances, and record-keeping.
  • Reduce Errors: Automated systems help minimize mistakes and ensure compliance.

• Trade Finance & International Services:

  • If your business deals with international transactions, BMO can provide solutions for foreign exchange, letters of credit, and other global trade needs.

• Business Insurance:

  • Protect your business from unexpected events with various insurance options.

• Expert Advice:

  • BMO’s team of business advisors can provide guidance on everything from cash flow management to financing strategies and long-term planning.

How to Open a BMO Small Business Account

Opening a business bank account might seem daunting, but BMO aims to make the process as straightforward as possible. Here’s a general overview of what to expect:

1. Determine Your Business Structure

The documents you need will depend on how your business is legally structured:

• Sole Proprietorship: You and your business are legally the same entity.
• Partnership: Two or more individuals or entities operate a business together.
• Corporation: A separate legal entity from its owners.

2. Gather Required Documents

While the exact list can vary, common documents you’ll need include:

• Proof of Identity: Government-issued photo ID for all owners/signatories (e.g., driver’s license, passport).
• Proof of Business Registration:
  • Sole Proprietorship: Business name registration (if applicable).
  • Partnership: Partnership agreement, business name registration.
  • Corporation: Articles of Incorporation, Corporate Bylaws, Business Name Registration, shareholder register, director’s register.
• Business Operating Agreement (if applicable): For partnerships or multi-owner corporations.
• Business Address: Proof of your business’s operating address.
• Social Insurance Number (SIN) / Business Number (BN): For all relevant parties.

Tip: It’s always best to call ahead or check BMO’s website for the most current and specific list of required documents for your particular business structure.

3. Choose Your Account Plan

Based on your current and projected business activity, select the BMO Small Business Chequing Plan (Basic, Business Builder, Unlimited) that best suits your needs. Consider potential future growth.

4. Apply for Your Account

You typically have a few options to apply:

• Online: For some simpler business structures (like sole proprietorships), you might be able to start the application online.
• In-Branch: Schedule an appointment with a BMO business advisor at your local branch. This is often recommended, especially for more complex business structures, as they can guide you through the process and answer any questions.
• By Phone: You may be able to begin the process over the phone, with a follow-up visit to a branch.

5. Fund Your Account

Once approved, you’ll need to make an initial deposit to activate your account.

Understanding Fees and Service Charges

No bank account is truly "free," and understanding the fee structure is crucial for managing your business budget. BMO’s fees for small business accounts generally include:

• Monthly Plan Fee: This is the base fee for your chosen chequing plan (Basic, Builder, Unlimited).
• Excess Transaction Fees: If you go over the included number of transactions in your plan, you’ll be charged a per-item fee.
• Interac e-Transfer Fees: While some plans include a certain number of free e-Transfers, others may charge a fee per transfer.
• NSF (Non-Sufficient Funds) Fees: If you try to make a payment and don’t have enough money in your account, you’ll incur an NSF fee.
• ATM Fees: While using BMO ATMs is usually free, using ATMs from other banks may incur a fee.
• Other Service Charges: Fees for things like stop payments, wire transfers, or special requests.

Always review the detailed fee schedule provided by BMO when you open your account. Don’t hesitate to ask your business advisor to explain any charges you don’t understand. Choosing the right plan based on your transaction volume is the best way to minimize these costs.

Is a BMO Small Business Account Right for You?

Choosing a bank for your business is a significant decision. BMO offers a robust and comprehensive suite of services that can benefit many small businesses, especially those looking for:

• A trusted, established banking partner.
• A variety of account plans to match different business sizes and needs.
• Strong digital banking tools for convenience.
• Access to a wide range of additional business solutions (credit, loans, merchant services).
• Personalized support from business advisors.

Before making your final decision, take the time to:

1. Assess your current and projected business transaction volume.
2. Consider your specific needs for credit, payment processing, or other services.
3. Compare BMO’s offerings and fees with those of other financial institutions.
4. Speak directly with a BMO small business advisor to get personalized recommendations and clarify any questions.

Conclusion

Setting up the right bank account is a foundational step for any successful small business. A BMO small business account can provide you with the tools, support, and financial flexibility you need to manage your money effectively, streamline your operations, and focus on growing your venture. By understanding the different account types, digital features, and additional services, you can make an informed decision that empowers your business for years to come.