Grasshopper Bank Business Checking Review 2024

Grasshopper Bank caters to a range of businesses, including startups, technology companies, and professional services firms. There are no conditions on legal structure. Your business can be a limited liability company (LLC), corporation, partnership, or sole proprietorship. 

However, Grasshopper does not provide services to certain industries, including those in the adult entertainment, cannabis, gambling, virtual currency, and weapons and firearms sectors. 

Nonprofit organizations are also ineligible; neither are businesses operating in any of the US territories, including Puerto Rico. 

Here’s what’s required to be eligible for a Grasshopper Checking Account.

• You must be 18 years of age or older.
• You must be a US citizen or a permanent US resident.
• Your business must be located in the United States.
• You or your business must have a verifiable address in one of the 50 states or DC. 
• A minimum deposit of $100 required

To open an account, you must provide documentation such as your business's tax identification number (EIN or SSN), proof of business ownership, and identification of the authorized signers on the account.

• No monthly fee
• Up to 2.25% annual percentage yield (APY) on account balances
• 1% cash back on debit card
• 46,000+ in-network ATMs with no transaction fees

• No physical locations
• Cash deposits not accepted
• No savings and investment products
• Inadequate customer service

Grasshopper Bank’s Checking Account comes with an array of attractive attributes. Account holders will benefit from round-the-clock online and mobile banking. They’ll also get a special Visa debit card that, like a credit card, offers cash back rewards. 

Seamless integration with QuickBooks, as well as with their preferred accounting software, is possible. In addition, as a small business banking customer, you’ll also receive Autobooks software, which allows for digital invoicing and online payments. Moreover, with the mobile app, account holders can deposit unlimited checks instantly, and take advantage of unlimited free ACH transactions, as well as no fees on incoming domestic wire transfers.

Grasshopper's suite of products falls into two main categories: banking solutions and lending solutions.

Small Businesses and Startups

Small businesses and startups alike require banking solutions that are tailored to their specific needs. The solutions provided by Grasshopper Bank exactly fit that bill. The bank offers a range of services, including checking accounts, savings accounts, credit cards, and loans. Your startup can use these products to manage their cash flow, pay vendors, and make payroll. 

Additionally, these solutions may be accessed online, allowing businesses to manage their finances from anywhere.

Venture Capital and Private Equity

Grasshopper Bank provides venture capital and private equity firms with banking solutions that are designed to support their unique business models. 

These solutions include access to capital markets, asset management, and investment banking services. Additionally, these firms may require specialized financial reporting and risk management services.

API Banking

Grasshopper Bank offers a new form of banking that allows businesses to access banking services through application programming interfaces (APIs). 

These APIs allow businesses to integrate banking services directly into their own platforms, enabling them to offer seamless financial services to their customers. API banking solutions may include services such as payments, account management, and transaction processing.

BaaS

Grasshopper Bank offers a range of BaaS services, including payment, account management, and loans.

Banking-as-a-service (BaaS) is a model that goes hand in hand with API banking. It’s a paradigm that allows non-banking institutions to offer banking services through APIs. As a result, this approach enables businesses to offer their own branded banking services without having to obtain a banking license.

SBA Lending

SBA loans provided by Grasshopper Bank are designed to help small businesses obtain the necessary funds to start or grow their businesses. These loans are guaranteed by the SBA, which means that borrowers who may not qualify for traditional loans are more likely to qualify for credit. 

Startups can use these loans for a range of purposes, including working capital, real estate, and equipment purchases.

Venture Capital & Private Equity

Grasshopper Bank works with venture capital (VC) and private equity (PE) firms providing lending solutions to the companies they invest in. 

Funding includes bridge financing that supplies short-term funding to help companies meet their immediate needs. Additionally, these VC and PE firms may offer mezzanine financing, which provides a hybrid of debt and equity financing. 

CRE Lending

Grasshopper Bank’s commercial real estate (CRE) lending solutions are designed to help businesses acquire and develop commercial properties. These loans may be used to purchase land, build new structures, or renovate existing properties. CRE lending solutions generally offer customized repayment terms, such as interest-only or balloon payments.

Yacht Lending

Grasshopper’s yacht lending solutions are designed to help individuals purchase luxury yachts. These loans may be used to finance the purchase of new or used yachts, as well as refinance existing loans. Yacht loans offer a range of repayment terms, including fixed or variable rates, as well as customized loan structures.

• Earn up to 2.25% annual percentage yield (APY) on account balances
• 1% cash back on debit card purchases
• Access to accounting and payment application, Autobooks

• Balances on business checking account: 1.5%
• Money market savings: 1.5%
• Other DDA accounts: 1.0%

• Incoming domestic wire transfer: None
• Outgoing: $10 (online)
• Incoming international wire transfer fees: $5
• Outgoing: $25

Grasshopper Bank’s fee structure means that the majority of small businesses will pay no fees at all. There are no monthly fees, no ACH transaction fees, and no fees for incoming domestic wire transfers. 

In general, Grasshopper Bank has received favorable customer reviews. Customers like its easy-to-use online platform. They can manage their accounts, make transfers, and access other banking services with just a few clicks. 

In addition, customers also like that Grasshopper Bank offers competitive interest rates on its savings and checking accounts, which can help them grow their money over time.

Despite its many attractive features, Grasshopper Bank’s offerings may not appeal to some business owners. Those who fall in this bracket may be well served by considering fintech company Lili. 

If you're a business owner seeking an online, fee-free, interest-earning checking account, Grasshopper Bank is definitely worth considering. This is a bank that focuses on offering banking products for small businesses that includes business checking and lending, as well as other fintech solutions.

With Grasshopper Bank, you'll enjoy unlimited transactions, free payment transfers through ACH and incoming domestic wires, and free payment and invoicing software to manage your cash flow better. While the bank doesn't have brick-and-mortar branches, you can easily make check deposits through its mobile app.

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