There are dozens of banks catering to businesses. So which one should you choose? BMO Harris is the eighth-largest bank in North America by assets. Founded in 1817, it offers services designed for companies of all sizes. BMO Harris has over 1,000 branches across 32 states. We’ve researched BMO’s business accounts and solutions to outline the pros and cons. Additionally, we’ll provide a helpful alternative for tech-savvy business owners.

BMO Harris Business Account Offerings

BMO offers a range of business account options, ranging from checking and savings to lines of credit and merchant services. We’ve broken down their offerings below:

Business Checking 

BMO offers business checking accounts tailored for businesses of all sizes. The BMO Simple Business Checking account is designed for budget-conscious businesses. This account features a low monthly maintenance fee of $10 that can be waived with a $100 balance. It offers up to 100 free transactions and $2,000 in fee-free cash deposits per statement period. 

For growing businesses, the BMO Premium Business Checking account offers increased transaction and cash deposit limits. It comes with a slightly higher monthly fee of $15. This fee can be waived with a minimum balance of $1,500. Established businesses seeking interest earnings may prefer the BMO Elite Business Checking account. This account offers the highest transaction and cash deposit limits. It also allows businesses to earn interest. The BMO Elite account has a $25 monthly fee, which can be waived with higher balance requirements. 

For businesses that prioritize digital banking, the BMO Digital Business Checking account offers a low-fee option that focuses on online services. Finally, BMO also offers specialized accounts for large businesses with complex needs and non-profit organizations. 

All accounts include free ATM transactions at BMO and Allpoint ATMs, digital banking tools and additional business services such as credit cards and lending options. Eligible businesses can apply online for these accounts, and a quick decision-making process is available.

Business Savings

Several business savings options are available to help companies manage and grow their excess funds. The Business Savings Builder account is designed for businesses with extra money to set aside. It features a variable interest rate and a waivable $10 monthly fee. This account encourages saving by offering an additional $10 monthly bonus for the first year when businesses save $500 or more each month.

BMO provides the Elite Business Money Market account for businesses with larger amounts to save. This account offers a higher base interest rate of 1% APY, while BMO’s relationship packages can potentially offer even higher rates. The interest rates increase based on the Quarterly Combined Business Balance across all eligible accounts. Tiers range from Elite Gold to Elite Diamond, each offering progressively higher interest rate boosts for larger balances.

BMO also offers Certificates of Deposit (CDs) for businesses seeking guaranteed growth over a fixed term. These CDs provide competitive rates without monthly maintenance fees, allowing businesses to lock in their savings for a predetermined period. 

All of BMO’s business savings options can be managed through its Digital Banking platform, which provides easy access to funds and tools for tracking savings goals.

Business Loans and Lines of Credit

BMO offers several lending options. Their business loans provide financing from $100,000 to $1,000,000 with competitive fixed interest rates and terms of up to 10 years. For more flexible access to funds, BMO’s business lines of credit offer amounts from $10,000 to $1,000,000. These lines have variable interest rates secured by business assets.

The bank also caters to specific business requirements with specialized lending options. The Greener Future Financing program supports environmentally beneficial projects with rate discounts on qualifying loans. For businesses needing flexible financing for large purchases, the Business Flex Loans offer an initial draw period with no interest until funds are used.

BMO participates in SBA loan programs, providing longer terms and lower down payments for various business purposes. They also offer real estate lending for acquiring or refinancing owner-occupied commercial properties, and equipment leasing solutions that allow businesses to obtain necessary assets without large upfront costs.

Business Credit Cards

BMO has two business credit cards. The BMO Business Platinum Rewards Credit Card is designed for businesses looking to earn rewards on their purchases. This card offers a generous welcome bonus of up to 100,000 points and allows cardholders to earn up to five times the points on eligible purchases. It comes with a 0% introductory APR on balance transfers for nine months. There is no annual fee. The rewards earned can be redeemed for cash, gift cards, travel and more through the BMO Flex Rewards program.

For businesses prioritizing a low APR, the BMO Business Platinum Credit Card is an excellent choice. This card offers a 0% introductory APR on purchases and balance transfers for the first 18 months, making it ideal for businesses looking to finance large purchases or consolidate debt. Like its rewards-focused counterpart, this card also has no annual fee.

Both cards come with easy online management tools. Businesses can oversee their accounts, make payments and view transactions. They also offer a straightforward application process with quick decisions and simple ID verification. 

Merchant Services and Payroll Processing

BMO offers merchant services through a partnership with Elavon. This is designed to help businesses increase sales and improve cash flow while enhancing security. Their merchant services allow businesses to accept various payment types, including card payments and mobile wallets, with options for next-day or same-day fund access. Each of the solutions is customizable and can accommodate in-store, online and mobile payments. They come with competitive pricing and no long-term contracts. BMO’s merchant services also include e-commerce tools, cost reduction programs and industry-specific point-of-sale solutions, all backed by reliable U.S.-based customer support.

For payroll processing, BMO collaborates with Paychex. This service helps businesses save time on payroll and HR tasks, potentially reducing up to 18 hours of work per week. The platform manages payroll, taxes, recruitment, hiring and employee payments through an intuitive interface. BMO customers benefit from special discounts on these services, making it a smart option for businesses looking to streamline their payroll operations and save money.

Pros of BMO Business Accounts

  • Diverse account options: BMO offers several business checking accounts. They also provide various savings options, catering to different savings goals and balance levels.
  • Flexible financing solutions: BMO offers business loans ranging from $100,000 to $1,000,000 with terms of up to 10 years. They also provide lines of credit for quick access to cash. Specialized programs, like Greener Future Financing, support environmentally beneficial projects. SBA loans offer longer terms and lower down payments. Additionally, equipment leasing allows businesses to acquire assets without large upfront costs.
  • User-friendly digital tools: BMO provides easy-to-use online banking tools for managing accounts, making payments and viewing transactions. Their business management tools include customizable reporting features.
  • Reliable customer support: BMO offers U.S.-based customer service for both their merchant services and business accounts, ensuring businesses have access to friendly and knowledgeable assistance when needed.
  • Competitive rates and transparent pricing: BMO emphasizes clear, competitive pricing across its services. Its merchant services come with no long-term contracts, and its account fees are straightforward—with multiple ways to waive monthly maintenance fees.
  • Specialized programs: Programs like the Greener Future Financing program support specific business needs and offer special perks.

Cons of BMO Business Accounts 

  • Account fees: Some BMO business checking accounts carry monthly maintenance fees, particularly those with lower balance requirements. These fees could impact smaller businesses or those with fluctuating balances. 
  • Interest rates: While BMO offers interest-bearing accounts, their rates may not be as competitive as those offered by some online banks or other financial institutions.  
  • ATM access limitations: BMO charges a $3 fee for non-BMO ATM transactions. Despite having a network of over 40,000 ATMs, this fee could be inconvenient for businesses that frequently need to use ATMs outside the BMO network. 
  • Transaction restrictions: Certain checking accounts impose limits on free transactions per statement period. For example, Simple Business Checking allows 100 free transactions and charges $0.40 for each additional transaction. This could lead to unexpected fees for businesses with high transaction volumes. 
  • Branch accessibility: With 1,000 branches across 32 states, BMO’s physical presence is somewhat limited, compared to some larger national banks. This could be inconvenient for businesses that value in-person banking services and are located far from a BMO branch. 
  • Credit card interest rates: BMO’s business credit cards come with variable APRs that may increase after the introductory period. This may potentially lead to higher costs for businesses that carry balances on their cards. 

Try a Digital-First Business Banking Alternative: North One

If BMO’s offerings aren’t quite right for your business, North One is a smart alternative. Designed for small businesses, freelancers, and startups, North One launched in 2019 as a digital-first banking platform. It prioritizes user-friendly, mobile-centric financial management.

North One’s streamlined online account opening process provides quick access to various banking services. There are no additional fees for standard transactions, ATM usage, overdrafts, or non-sufficient funds (NSF). For advanced features, “Plus” accounts are available for a monthly fee. North One also simplifies business lending for its customers.

North One’s Envelopes system allows users to create multiple sub-accounts within their main account. This tool is useful for budgeting and financial planning. It enables businesses to allocate funds for specific purposes like tax payments or savings goals. Each account includes a MasterCard debit card, which can be expedited for quick access to funds.

North One caters to cash-based businesses by offering free cash deposits at eligible ATMs, though limits apply to cash withdrawals. Domestic wire transfers are available for a $15 fee, but international wire transfers are not currently supported. To enhance financial management, North One seamlessly integrates with popular accounting software and payment platforms, making it an excellent choice for small businesses.

Consider a Digital-First Approach to Business Banking

Whether BMO’s feature-rich account options are what you need, or you opt for North One’s convenient digital-first approach, be sure to research each bank thoroughly. Understanding the pros, cons and fee structures will help you make the right choice, so your business can thrive.