Business checking account as alternative to Chexsystems

business checking

business checkingBusiness owners who have incorporated or formed an LLC are usually able to open a business bank account while in Chexsystems. Typically banks do not use Chexsystems when opening a business checking account; however, a new trend is emerging. Some banks are now running a Chexsystems report on not only the business but also the signors on the account.

In the past sole proprietors were the only businesses that may be subjected to Chexsytems; but now, partnerships, limited liability companies (LLCs) and corporations may be subjected to Chexsystems as well.

If the bank does not use Chexsystems for signors on the account they may pull a credit report. Bank of America is one such bank. While they do not use Chexsystems for business bank accounts, signors on a business account have a personal credit report pulled.

It no longer matters whether you are a sole proprietor, limited liability partnership or corporation. Bank of America is currently pulling credit reports on the signors of any business account. If you have questionable credit, you may not be allowed to open a business account.

If you wish to open a business account, corporations and LLCs are required to have an EIN (employer identification number). This number will be used by the banks when opening a business checking account, not a social security number. If you have not acquired an EIN for your business learn how to structure your business.

The following banks may be a good choice for a business savings or checking account as an alternative to Chexsystems, you will need the EIN of your business along with business documents such as a Business License, Articles of Incorporation or DBA (Doing Business As) Registration:

US Bank
Business owners have several account basic features and add-on options to choose from: Online Banking Options, Visa® Check Card Option, Remote Check Deposit, Check Fraud Prevention, Business, Reserve Line Overdraft Protection and Cash Flow Manager Line of Credit. Monthly fees can be waived if certain conditions are met.

HSBC has several business checking account options. They offer no monthly maintenance fees, no minimum balance requirements, no HSBC fees when using non-HSBC ATMs, 10 free wire transfers per month and much more. You are limited to 300 free monthly transactions and you can pay bills online with the free bill pay service. The account comes with a HSBC Debit Mastercard.

Chase Bank offers several different types of business checking accounts. The Chase Business Select Checking account is free of monthly service fees if you maintain a linked qualifying personal checking account; maintain an average daily balance of $7,500 or more; keep a minimum daily balance of $5,000 in the account; make $1,000 in purchases on your linked Chase Business Credit Card; or pay $50 or more in qualifying checking account fees

Fifth Third Bank
Fifth Third Bank offers flexible solutions to match your business needs. Fifth Third Bank provides you with access to banking products and services that will aid you in your daily operations, help you manage cash flow, and ensure your money is always working for the benefit of your business. There are many options to suit your small business needs.


4 thoughts on “Business checking account as alternative to Chexsystems”

  1. Fifth Third opened me a business account with no issues. I built a strong relationship with 5/3 and they gave me a personal account and overrode my chex systems report, they didnt pay to much attention to what the chex report said. They even hooked me up with a credit card and started me at $2,000.00 limit with $24 annual fee. not bad at all.

  2. The trend is .. while they don’t run your EIN on new business accounts what they are doing is running threw the personal side as well. So you go in and apply for a business only they are also running you for personnel to. So of course chexs is pulled. Its almost impossible to get a account at any of those banks you listed above. Chase, HSBC and US Bank and Bank of America ALL USE CHEXS on all accounts including LLC and corps. now. Good luck finding someone that will.

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