Over the past 20 years banking methods have changed. Historically, a company may have had several checking accounts, some savings, certificates of deposit (long term savings), and a few, a merchant account. The business might have taken a bank loan at times too to enable expansion or taking advantage of some opportunity. That was Traditional Banking. Today the number of banking organizations has declined significantly but the share of banking assets controlled by the largest banks has increased greatly. Bank mergers and acquisitions have rocketed, banks have become global and the differences between commercial banks and non-bank financial institutions have diminished. Today the industry has gone a lot further in the area of financial options such as investment accounts, securities, and offers a huge variety of other banking solutions.

Modern day business banking is very different. Legislation increasing opportunities for geographical expansion has been spurred by technological change which makes it easier to make loans and gather deposits from distant customers. Internet banking is now everyday procedure for many businesses and this has proved very cost effective and time saving. However, there is still a place for traditional banking practices, especially for the small trader.

On line business banking provides a comprehensive service package for companies, including account management (managing multiple business accounts, multiple users with specified access levels, online access to business and personal accounts); direct payments (schedule payments to eliminate late fees, control cash flow by choosing payment delivery time); express invoicing (create and send invoices, automate current, paid and past due invoices, eliminate check holds by receiving invoice payments securely online); on line payroll (file and pay federal and state taxes electronically, prevent IRS penalties, avoid paper checks with direct deposit to employee accounts). Interactive internet banking also provides such services as on line viewing, transaction reporting and merchant reporting. This extent of involvement in the banking process gives greater transparency and control to the business managers and accountants, particularly for small and medium size businesses who do not have a large accounts department.

With the growth of international trade, banks have become more used to processing electronic payments across borders and monetary conversion (exchanging one currency for another). You now have the choice of an international or local bank for your business banking.

Many businesses also require special accounts such as escrow (trust account held in the borrowers name to pay obligations such as property taxes and insurance premiums) with provision specifically to enable compliance with certain laws. This often occurs between insurance companies and their agents.

When it comes to choosing a bank and maximizing the positives from your relationship with your new bank there is much to consider and it is important to find a bank with the best solutions for your particular requirements. Once you are aware of the five year business plan of your organization you will be able to outline what the business requires from the bank financially (cash-flow requirements) and the level of support and overdraft facility. An analysis of your banking habits should be undertaken (e.g. cash flow, investments, transactions, checking requirements, payment methods, electronic banking, interest and expenses and fees).

Check thoroughly what is available for you that will allow you to maximize your returns and minimize fees taking into account current and future business-banking habits. Banks are open to a degree of bargaining where multiple services are required. Regular evaluation of your banking practices makes good sense in a changing business environment.