Start with the relay!
One of the most important best practices for any new business owner is to keep personal and business finances separate.
Not only does it help you stay organized, but combining the two can cause all kinds of legal and tax problems down the road.
When I started my first business and began to get my banking situation in order, I tried opening a business account at the same bank where I had my personal accounts and quickly realized that, despite what everyone says, Most banks and credit unions are not good for small businesses.
It felt like a BIG test every time I wanted to do something slightly out of the ordinary (like open a new account to manage my cash flow). And all the additional fees they charged were ridiculous!
Some banks and credit unions may be fine for personal use, but that doesn’t mean they are set up to best meet the unique needs of a small business owner.
The search for business banking begins
I needed to find a better banking solution tailored to my needs. But it seemed like every bank had some drawback, whether it was high minimum balances, fees for everything, or simply not having the tools I needed to properly manage my finances.
You may be fooled into thinking you have to compromise, but that’s why you need to know about Relay.
What is relief?
Relay is a ‘business banking and money management platform’.
It may seem complicated, but it’s essentially a service where you manage your money and decide where it will go. It allows you to manage your company’s cash flow and clearly understand your profits, expenses and savings.
If you have seen my mercury reviewRelay is a similar concept.
While Relay is not a bank, your money is FDIC insured through its banking partner, Thread Bank. Like Mercury, Relay is completely designed for startups and has no physical branches.
And here’s the kicker: it’s free for most effects!
Some random things come with minimal fees (like domestic and international transfers), but even then, they’re very cheap (we’re talking $5 to $10). Otherwise, any transaction you make with Relay is free, there are no minimum balance requirements, and their website and mobile app are a pleasure to use.
Starting with the relay
Everyone appreciates simplicity and ease, and Relay achieves this by making account creation as easy and straightforward as possible. You can do everything completely online, whether on a computer or phone. Relay has an intuitive mobile app that allows you to do everything you need without switching to another app.
But unlike other banks that make the registration process seem like you’re renewing your driver’s license at the DMV on a busy Monday, Relay has turned this into an easy, seamless, interactive experience with questions and little prompts. You can sign up in less than 10 minutes and I was surprised at how much fun it was.
Setting up your business profile and linking it to an existing external bank account is also incredibly simple. Relay integrates seamlessly with popular accounting software out of the box, such as quick books either xero. The ability to easily bring everything together in one place will be a huge relief for you and your accountant.
Additionally, this integration is also optimized for accountants and bookkeepers, as Relay has some features that make it easier for these professionals to use the platform. If you want to get paid (or pay someone using Relay), it also integrates with major payment processors like PayPal, Stripe, Enthusiasmand others.
Watch this video where I recorded myself setting up my account with Relay, and you’ll see how easy it is!
Start with the relay!
The process may differ slightly if you are not a US citizen or resident, but it is not difficult. You only need your employer identification number (EIN) and LLC registration.
Compare this to traditional banks, which require a social security number and a physical visit, and you might wonder why most banks don’t do it this way.
RELATED: How to Start Your LLC (It’s Easier Than You Think!)
Features that conquered me
When I started using and exploring Relay more, I discovered many features that blew me away.
Opening up to 20 checking accounts and two savings accounts with one click was incredible, especially considering how difficult I’ve seen other banks make this process.
And since it’s easy to open a new account in seconds, it can save you a lot of time when you own multiple properties in an LLC, for example.
This facility is also a perfect match for cash flow frameworks that use multiple accounts, such as Profits first.
Relay is Profit First’s real banking partner and you can see why: it’s designed to automate weekly percentage allocations, for example, as you adjust your earnings and pay yourself first.
In that sense, one of the most difficult things about implementing Profit First is manually transferring money to different accounts when each deposit arrives in your main account each day, week or month. Well, Relay has basically solved that problem with the different automations that you can set to happen whenever you want and for the amount you want to transfer to the accounts you want.
If you use Profit First in your business, you will LOVE Relay!
Start with the relay!
One downside to using most online banks is that it can be more difficult to work with cash because there is no bank branch nearby that you can visit when you need to.
While Relay doesn’t have branches, it is connected to the Allpoint ATM network, meaning you can withdraw cash from any Allpoint ATM and even deposit cash into your bank account if you can find an Allpoint Plus ATM.
You can find your nearest Allpoint ATM here.
Customer service
Finally, if you ever get stuck on something, you can talk to someone on the phone if you need help (and this alone is a big problem).
Some software companies leave it to chatbots, or at most; They may provide you with an email address that they will respond to within 24 hours on business days. But Relay has a staffed customer service department. They’re in Canada, but interestingly, all of Relay’s banking partners are in the US.
Some growing pains
Now, Relay is not without some limitations.
Like most online-only banking platforms, Relay implements transfer limits for new users. This is a security measure rather than a limitation, which should deter bad actors from using the platform to establish illegitimate or illegal businesses. You can always request an increase in transfer limits if you use the service correctly, but it may take some time to get used to the initial transfer limits.
Another possible drawback (depending on what you’re looking for) is that if you’re looking for financial products like mortgages either HELOCRelay can’t help you. I’m not sure if Relay will offer these types of banking products in the future, but if you’re looking for something like this, you’ll have to look at a traditional bank or credit union.
The conclusion
After using Relay, I can confidently say that they are leveling the playing field. Handling finances is now streamlined and easy, and if you’re a startup or tech company that rarely has a reason to visit a local bank branch in person, it’s hard to think of many reasons. No consider something like Relay.
And I think a lot of people on the Internet agree. That said, while overall sentiment has been positive, that doesn’t mean Relay doesn’t have its critics. It remains to be seen how well they can continue to provide excellent service and value to their customers over time. But in my experience, Relay is an amazing service and their customer support team is incredibly responsive and helpful if you find gaps in what they offer.
And if you’re wondering, are there any special promotions going on right now with Relay? The good news is yes! Click the REtipster affiliate link to open an account. If you deposit at least $100 into your new account, Relay will give you an extra $50 for free.
Start with the relay!
If you’re going to open an account with Relay anyway, why not get some free money with the deal?
Before you go…
Relay It’s a solid option, but there are many money management solutions out there. If you’re curious about some alternatives worth considering, check out my review. MercuryIt offers a similar set of benefits with some clear differences.
