Startup Banking & Financial Infrastructure

Set up the right financial foundation for growth

Business Bank Accounts

Compare the top startup-focused banking platforms

Feature Mercury Brex Relay Rho
Monthly Fee $0 $0 $0 $0
FDIC Insurance Up to $5M Up to $6M Up to $3M Up to $75M
Wire Transfers $5 domestic Free $5 domestic Free
International Transfers Mercury IO Built-in Via Wise Built-in
Integrations QuickBooks, Xero Netsuite, QBO QBO, Xero Netsuite, Sage
Best For Early-stage startups VC-backed companies Bootstrapped/SMBs Series A+ companies
API Access

Required Documents

"What you'll need to open an account"

  • EIN (Employer Identification Number)
  • Articles of Incorporation
  • Operating Agreement (LLC) or Bylaws (Corp)
  • Government-issued ID for all owners
  • Proof of business address

Features to Look For

"Essential features for startups"

  • No minimum balance requirements
  • Free ACH transfers
  • Multi-user access with permissions
  • Accounting software integrations
  • Virtual and physical debit cards

Fees to Avoid

"Watch out for these hidden costs"

  • Monthly maintenance fees
  • Minimum balance penalties
  • Per-transaction fees
  • Excessive wire transfer fees
  • Paper statement fees
  • Account closure fees

Payment Processing

Choose the right payment processor for your business model

Feature Stripe PayPal Square
Card Processing Fee 2.9% + $0.30 2.99% + $0.49 2.6% + $0.10
International Cards +1.5% +1.5% +3%
ACH/Bank Transfers 0.8% (max $5) Not available 1% (max $1)
Developer API Excellent Good Good
Subscription Billing Built-in Limited Basic
Best For SaaS, Marketplaces E-commerce, B2C Retail, Services

Use Stripe When

"Best for tech-forward businesses"

  • Building a SaaS or subscription product
  • Need custom payment flows
  • Running a marketplace with payouts
  • Accepting international payments

Use PayPal When

"Best for consumer trust"

  • Selling to consumers (B2C)
  • Brand recognition matters
  • Want quick checkout integration
  • Need buyer protection features

Use Square When

"Best for in-person sales"

  • Have physical retail locations
  • Need POS hardware
  • Running a services business
  • Want inventory management built-in

International Payment Considerations

"Key factors for global payments"

  • Currency conversion fees (typically 1-3%)
  • Local payment methods (Alipay, iDEAL, etc.)
  • VAT/GST compliance requirements
  • Settlement timing by region
  • Stripe Atlas for US entity setup
  • Multi-currency pricing strategies

Subscription Billing Platforms

Specialized platforms for recurring revenue businesses

Stripe Billing

Best for: Startups already using Stripe

  • 0.5% on recurring (capped at $200/mo)
  • Native Stripe integration
  • Smart retries for failed payments

Chargebee

Best for: Complex pricing models

  • Starts at $249/mo
  • Usage-based billing support
  • Revenue recognition built-in

Recurly

Best for: Enterprise-scale subscriptions

  • Custom pricing
  • Advanced dunning management
  • Multi-gateway support

Startup-Specific Banking

Financial tools designed for high-growth companies

Venture Debt Options

"Typically 20-35% of your equity round"

When to Consider Venture Debt

  • Extend runway between equity rounds
  • Finance equipment or working capital
  • Reduce dilution from equity raises
  • Bridge to a specific milestone

Key Providers

  • Silicon Valley Bank: Traditional venture debt leader
  • Hercules Capital: Larger growth-stage deals
  • Lighter Capital: Revenue-based financing
  • Clearco: E-commerce focused

Corporate Credit Cards

Built for startups with higher limits and better rewards

Feature Ramp Brex
Annual Fee $0 $0
Credit Basis Cash balance Funding + Cash
Rewards 1.5% cashback Points (varies)
Expense Management Advanced Advanced
Virtual Cards Unlimited Unlimited
Best For Cost savings focus VC-backed startups

Carta

"Industry standard for cap table management"

  • 409A valuations
  • Equity plan administration
  • Scenario modeling
  • Investor data rooms

Starts at $2,400/year

Pulley

"Modern alternative with founder-friendly pricing"

  • Free tier for early-stage
  • 409A valuations included
  • Employee self-service portal
  • Waterfall analysis

Free tier available, then $300/year

Financial Infrastructure

Build a scalable financial foundation for your startup

Separating Accounts

"Organize your finances for clarity and compliance"

Operating Account

Day-to-day expenses, vendor payments, and revenue collection. Keep 2-3 months operating expenses here.

Tax Reserve Account

Set aside 25-30% of net income for taxes. Prevents cash crunches at tax time.

Payroll Account

Dedicated account for payroll and benefits. Fund 1-2 pay periods in advance.

Reserves Account

Emergency fund and strategic reserves. Aim for 3-6 months runway.

Multi-Currency Considerations

"Managing international operations"

  • Open local currency accounts (EUR, GBP, etc.)
  • Use Wise Business for FX transfers
  • Consider natural hedging strategies
  • Track FX gains/losses for accounting

Treasury Management Basics

"Optimize your cash holdings"

  • Sweep accounts for interest on idle cash
  • Money market funds for reserves
  • T-Bills for longer-term reserves
  • Maximize FDIC coverage across banks

Cash Management Strategies

"Maximize runway and minimize risk"

Cash Flow Forecasting

  • 13-week rolling forecast
  • Scenario planning (best/worst/expected)
  • AR/AP aging analysis

Working Capital Optimization

  • Negotiate longer payment terms
  • Offer discounts for early payment
  • Automate collections

Burn Rate Management

  • Track gross vs net burn
  • Monitor runway monthly
  • Set spending thresholds by category

Stage-Specific Recommendations

Choose the right tools based on your startup's stage

Pre-Revenue / Bootstrapped

"Keep costs low while building"

Banking

Relay or Mercury - No fees, simple setup

Payments

Stripe (standard rates)

Cap Table

Pulley (free tier)

Cards

Personal card or basic business card

Seed Stage

"Scale your financial operations"

Banking

Mercury or Brex - Better integrations

Payments

Stripe + Billing for subscriptions

Cap Table

Carta or Pulley (paid tier)

Cards

Ramp or Brex - Higher limits

Series A+

"Enterprise-grade financial stack"

Banking

Brex or Rho - Treasury management

Payments

Stripe + Chargebee/Recurly

Cap Table

Carta (full suite)

Cards

Brex - Full expense management

Recommendations by Startup Type

Tailored financial stack for your business model

SaaS

"Subscription-focused stack"

  • Payments: Stripe Billing or Chargebee
  • Banking: Mercury (API integrations)
  • Analytics: ProfitWell or Baremetrics
  • Focus: MRR/ARR tracking, churn reduction

Marketplace

"Multi-sided payment handling"

  • Payments: Stripe Connect
  • Banking: Brex (multi-entity support)
  • Payouts: Stripe payouts or Tipalti
  • Focus: Take rate, GMV tracking

B2B

"Enterprise sales support"

  • Payments: Stripe + invoicing
  • Banking: Rho (treasury features)
  • AR/AP: Bill.com or Melio
  • Focus: Net terms, collections

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