WTF? / Part 2 / 2.7
Why does a resale business need its own bank account?

Business bank account

THE 30-SECOND ANSWER

A business bank account is an account in the company's legal name, and it is where the business's provable financial history comes from.

In plain English

Every underwriter, bank, supplier, equipment lender, reads bank statements. Deposits show revenue. Balances show cushion. Payment history shows discipline.

Mixed personal and business accounts cannot be read that way, so the business gets treated as if it has no history at all.

Example

A supplier's credit department asks for three months of business bank statements before setting an opening credit limit.

Why it matters

This one account is the foundation of every credit decision made about you later.

COMMON MISTAKERunning cash sales outside the account. Income you cannot prove cannot be borrowed against.
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