Woodforest National Bank Business Checking Review 2023
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
This article is part of a larger series on Business Banking.
For business owners who have had financial troubles and found it difficult to open bank accounts, Woodforest National Bank is an excellent choice as it offers a Second Chance Business Checking account. This traditional community bank also has three other business checking accounts: Business Simple Checking, Advantage Business Checking, and Business Plus Checking. These feature waivable fees, high free transaction limits, and a Woodforest business debit card that’s subject to a $15 setup fee, withdrawn from your checking account.
What We Like
- Waivable monthly fees
- High free monthly transaction limits
- Second Chance Business Checking account
What's Missing
- Branches limited to 17 states: Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia
- Low APY
- Need to visit a branch for account opening
Features
- Business debit card
- Online and mobile banking
- Transfer funds, view balances, and deposit checks using the mobile app
- 0.05% (variable) annual percentage yield (APY) for Business Plus Checking
- Access to Merchant Acquiring Solutions
- Variety of small business loans
How Woodforest National Bank Stacks Up With Its Competitors
Annual Percentage Yield | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
 Business Simple Checking | N/A | Unlisted* | $1.50 for balance inquiries; $2.50 for withdrawals at non-Woodforest ATMs | $100 |
 Simple Business Checking | N/A | Free up to $2,000 per month; then .003 of a cent per $1 per statement cycle | Free at Truist ATMs; $3 at domestic non-Truist ATMs; $5 for international | $100 |
 Business Checking | N/A | Free up to $5,000 month; then 25 cents per $100, per statement cycle | $3 per transaction at non-PNC Bank ATMs; two reimbursements for non-PNC Bank ATM per statement period | $100 |
*Information isn’t listed on the provider’s website, and we have been unable to obtain the information directly from the bank. This often means that the requirement varies by branch and/or location.
When Woodforest National Bank Is a Good Fit
- Business owners with prior financial issues: It provides a Second Bank Business Checking account for business account holders with closed accounts, providing an opportunity to improve their finances and banking history.
- Businesses with a low monthly transaction volume: With Business Simple Checking, you get up to 250 free items each month.
- Businesses with a moderate to high monthly transaction volume: With Advantage Business Checking, you get up to 500 free monthly transactions.
- Sole proprietors, nonprofits, and government entities that want an interest-earning account with unlimited check writing: With Business Plus Checking, you enjoy no additional charges, regardless of the number of checks you write while earning interest in one account.
- Business owners seeking small business loans: The bank offers multiple financing solutions through unsecured lines of credit, revolving lines of credit, term loans, and business auto loans. For comparison, you can also check out our list of the best banks for small business loans.
When Woodforest National Bank Is Not a Good Fit
- Businesses that want a free business checking account: While it offers waivable fees, all checking accounts have monthly fees. It even charges to set up your debit card, which is free with other providers. You can opt for Novo, , or Grasshopper Bank to open a free business checking account.
- Businesses located outside of Woodforest National Bank’s service areas: With more than 750 branches in 17 states―Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia―it has a solid presence. However, if you prefer access to nationwide brick-and-mortar branches, consider Chase, Bank of America, or Wells Fargo.
- Businesses sending international wires frequently: Its outgoing international wire transfer fee is steep at $85. You can go for Relay, which charges only $10, or Mercury, where all domestic and USD international wires are free.
- Business owners looking for higher APY earnings: Though it offers an interest-bearing account, Business Plus Checking, the interest rate is low at 0.05%. You can consider Bluevine, Axos Bank, or Grasshopper Bank for their 1% and above APY offerings.
Woodforest National Bank Business Checking Overview
Woodforest National Business Checking Requirements
You have to visit a Woodforest National Bank branch to open a business checking account.
Beneficial owners (individuals who own 10% or more of the equity interests of the legal entity) don’t need to be present to open an account. Any representative authorized to open an account on behalf of the legal entity can provide information about the beneficial owners via the beneficial ownership form. This form requires the following information:
- Name
- Date of birth
- Social Security number (US citizens)
- passport number and country of issuance (for Non-US individuals)
- Residential address
- Country of citizenship
- Country of residence
- Percentage of ownership for each beneficial owner
The same information will be required for each controlling individual. Certification that the information provided is complete and correct is also needed.
Below are Woodforest National Bank’s additional business checking requirements based on entity type:
Sole Proprietorship
The owner of the business may open this account. The cocumentation required is state-specific:
- Alabama: Business occupational license issued by city or county where operating
- Florida: Registration of fictitious name filed with Department of State
- Georgia: Occupation tax certificate, business license, or registration of trade name filed in county of operation
- Illinois: Assumed name application and certificate of ownership obtained from county clerk’s office
- Indiana: Certificate of assumed name filed with county recorder’s office in county of operation
- Kentucky: Certificate of assumed name filed with county clerk’s office in county of operation
- Louisiana: Certificate of assumed name filed with county parish clerk’s office in county of operation
- Mississippi: Privilege tax license filed in county or city of operation
- Maryland: Trade name registration filed with Maryland Department of Assessments and Taxation
- New York: Business certificate filed with county clerk’s office in county of operation
- North Carolina: Certificate of assumed name filed with registrar of deeds in county of operation
- Ohio: Trade name registration filed with Secretary of State
- Pennsylvania: Registration of fictitious name filed with Department of State
- South Carolina: Business license filed in county or city of operation or retail license filed with state
- Texas: Certificate of assumed name filed with county clerk’s office in county of operation
- Virginia: Certificate of assumed name or fictitious name filed with circuit court’s office in the county or city of operation
- West Virginia: Business registration certificate filed with West Virginia State Tax Department
Other documents:
- Franchise agreement: Only required if sole proprietorship is operating as a franchisee
- Acceptable and nonexpired ID for each authorized signer (with the exception of United States Military IDs, photocopies of identifying documentation will be retained)
- Social Security numbers for each authorized signer
General Partnership
All general partners must be present and on the account:
- Assumed name certificate/doing-business-as (DBA): Required if partnership is doing business under a trade name, also referred to as fictitious name certificate or name registration
- Partnership agreement: Required if partnership is not clearly indicated on the assumed name certificate/DBA
- Franchise agreement
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each authorized signer
- Taxpayer identification number/employer identification number (TIN/EIN) for the partnership
- Documentation on each beneficial owner of the general partnership
Limited Partnership
All general partners must be present and on the account. If the general partner is a legal entity, such as a corporation or limited liability company (LLC), the authorized representative, such as director, officer, or manager, of that entity may open the account. Legal entity general partners must be in good standing with the state.
- Certificate of partnership
- Certificate of filing
- Assumed name certificate/DBA
- Franchise agreement
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each authorized signer
- TIN/EIN for the partnership
- Documentation on each beneficial owner of the limited partnership
LLC
At least one individual appointed as manager or managing member of the business within articles/certificate of formation or most recent public information report. If a state-recognized manager will not be signing on the account, then a formal, notarized letter on company letterhead authorizing the account to be established may be requested:
- Articles of organization (also known as certificate of formation or certificate of organization)
- Certificate of foreign entity registration and foreign articles of organization (required if the LLC is opening an account in a state other than the state of original filing):
- Assumed name certificate/DBA, also referred to as fictitious name certificate or name registration
- Franchise agreement
- Proof that the LLC is active and/or in good standing in the applicable state―referred to as a certificate of good standing
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each manager/member and any authorized signers
- TIN/EIN for the LLC
- Documentation on each beneficial owner of the LLC
Limited Liability Partnership (LLP)
All general partners must be present and on the account. If the general partner is a legal entity, such as a corporation or LLP, then the authorized representative, such as the director, officer, or manager, of that entity may open the account. Legal entity general partners must be in good standing with the state:
- Articles of organization
- Certificate of filing
- Certificate of foreign entity registration of a limited partnership
- Assumed name certificate/DBA
- Franchise agreement
- Proof that the partnership is active and/or in good standing in the applicable state―referred to as a certificate of good standing
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each manager/member and any authorized signers
- TIN/EIN for the LLP
- Documentation on each beneficial owner of the LLP
Corporation
At least one individual appointed as director or officer of the business within Articles/Certificate of Formation or most recent Public Information Report. If a state-recognized Director or Officer will not be signing on the account, then a formal, notarized letter on company letterhead authorizing the account to be established may be requested:
- Certificate of formation or articles of incorporation
- Certificate of filing
- Certificate of foreign entity registration and foreign articles of incorporation
- Assumed name certificate/DBA
- Franchise agreement
- IRS determination letter (only required if corporation is nonprofit)
- Proof that the corporation is active and/or in good standing in the applicable state―referred to as a certificate of good standing
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each authorized signer
- TIN/EIN for the corporation
- Documentation on each beneficial owner of the corporation
Associations & Organizations
Officers or authorized parties identified within the meeting minutes and notarized letter can open the account:
- Organization’s charter
- Organization’s by-laws or operating agreement
- Signed formal letter, preferably on letterhead, and signed meeting minutes stating the Organization’s intent to open an account and who will be authorized to sign
- Acceptable and nonexpired ID for each authorized signer
- Social Security numbers for each authorized signer
- TIN/EIN for the association
Before opening an account, you may want to read our guide on how to open a business bank account. It includes a free downloadable checklist of required documents.
Woodforest National Bank Business Checking Features
Woodforest National Bank’s Business Checking includes a business debit card, a second chance checking account, waivable fees, and online and mobile banking.
Second Chance Business Checking
As banks can check account and credit history through ChexSystems, those with prior banking issues might not be able to open a business checking account with other banks easily. However, Woodforest National Bank offers a Second Chance Business Checking account, providing an opportunity to improve your financial standing. It has the same number of free monthly transactions as Business Simple Checking, at 250 free items per month. You just need to pay $15 as a one-time account setup fee.
Waivable Fees
While Woodforest National Bank doesn’t offer a free business checking account, you can still waive monthly fees by meeting the required maintaining balances. All business checking accounts have waivable fees, except for Second Chance Business Checking.
Online & Mobile Banking
With online banking, you can view current and past statements, set up e-bills for recurring payments, perform fund transfers, and re-order checks. Through the mobile app, you can also deposit checks, view balances, and manage your debit cards.
Reviews for the Woodforest mobile app are average on both the App Store (2.9 out of 5) and Google Play (3.8 out of 5). Users rated it high for ease of use. There’s older negative feedback, mostly due to frequent crashes, but newer reviews have been generally positive.
Business Services
- Merchant Acquiring Solutions: Delta 1st, CELL IT® Plus, credit cards and debit cards―Visa, Mastercard, Discover, and American Express―mobile and countertop terminals, virtual terminal, mobile, and ecommerce
- Woodforest Wealth Strategies: Risk management, lending solutions, estate planning, insurance and annuities, and company retirement plans
Other Checking Products
Woodforest National Bank offers Business Checking, an analyzed checking product suitable for companies with higher balances and activity. It features an earnings credit allowance to offset service charges.
Other Banking Products
- Business savings: For a minimum opening deposit of $100, you can earn competitive variable interest with no minimum daily balance required. Its $3 monthly fee can be waived by maintaining a $300 minimum daily balance in your account. Also, you can make withdrawals up to three times each month for free, but $3 will be charged thereafter.
- Money market: Available to all business entities, you can open a money market account with a $100 opening deposit. You can earn competitive variable interest with no minimum daily balance required. The $15 monthly fee can be waived if you maintain $2,500 minimum daily balance in your account. You can make withdrawals up to six times each month for free but $20 will be charged thereafter.
- Business Reli® unsecured line of credit: For unexpected business expenses, you can apply for an unsecured line of credit of anywhere from $500 to $10,000. Funds can be accessed online, by phone, or at a branch, and rates are fixed.
- Business revolving line of credit: For additional inventory purchases or more financing needs, you can apply for a revolving line of credit, where you obtain a minimum $5,000 loan amount. Business assets are required since this is a secured line of credit. Interest rates are variable.
- Certificate of deposit (CD) secured line of credit/term loan: If you need cash to pay for business costs in the short-term or seasonal period, you can apply for a line of credit or term loan of anywhere from $1,000 to $250,000. This product is secured by Woodforest Certificate of Deposit, and rates are fixed.
- Term loans: For business expansion, new equipment, or commercial vehicle purchases, you can apply for a term loan for a minimum of $5,000 loan amount. The repayment terms range from one to seven years. This requires payment of the principal and interest in regular installments and must be secured by your company’s business assets.
- Owner-occupied real estate: If you’re ready for property financing or refinancing of your existing commercial real estate, you can apply for this loan. You get up to 20 years of long-term financing, where rates are fixed and variable.
- Business auto loans: To support your business vehicle purchase from cars and vans to two-axle trucks, you can apply for this loan starting at $5,000 up to $250,000. Rates are fixed and it’s available for new and used autos. For comparison, you can also check out our list of the best business auto loan providers.
- Executive line of credit: If you plan to make an investment or improve your liquidity, you can choose an unsecured executive line of credit. You can access a loan amount from $25,000 to $150,000, where the rates are variable.
- Commercial loans: Woodforest National Bank extends a full suite of commercial lending products that cover lines of credit, term loans, commercial real estate (CRE) loans, and business credit cards to commercial clients.
Woodforest National Bank Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Unlimited check writing for Business Plus Checking | No free business checking account |
| Reasonable monthly fees | High international outgoing wire fees |
| Plenty of small business lending options | $15 business debit card setup fee |
Woodforest National Bank’s business checking accounts have reasonable monthly fees (ranging from $12 to $20) in case you fail to meet the required maintaining balance to waive them. You also benefit from unlimited check writing if you open a Business Plus checking account. Moreover, its checking accounts are an outstanding choice for business owners looking to access small business financing for more investment capital, seasonal expenses, or inventory purchases.
However, the bank doesn’t offer a free business checking account. It also comes with high international outgoing wire fees, a downside for business owners who need to send regular US wire transfers to vendors or suppliers. Although it issues a business debit card, you need to pay a $15 setup fee, unlike with other banks.
Alternatives To Woodforest National Bank Business Checking
Woodforest National Bank offers several great business checking accounts. However, your needs may not be covered if you want in-person banking in nationwide areas, a higher APY, and unlimited fee-free transactions.
Here are three alternatives to consider:
- Chase is best for business owners seeking branch access nationwide since Woodforest National Bank is only present in 17 states.
- Capital One is best for businesses wanting to save from transaction fees with its free unlimited transactions. While Woodforest National Bank has generous free monthly transactions, it’s still limited to 250 and 500 items, depending on the checking account.
- Bluevine is best for businesses looking for higher APY at 1.5%, given that Woodforest’s Business Plus Checking’s current interest only reaches a negligible 0.05%.
Our roundup of the best small business checking accounts contains additional recommendations.
Bottom Line
Woodforest National Bank is an excellent community bank providing several business checking accounts—from Business Simple Checking for small businesses with low banking activity, to Advantage Business Checking for enterprises with moderate business volume. What makes the bank stand out is its Second Chance Business Checking account, making a fresh start possible for those with prior financial issues. However, if you have a strong financial history, you can find cheaper accounts with better benefits at most traditional banks.
