Relay Review

About Relay Services

Relay is a financial technology company revolutionizing online business banking and money management for small businesses across the United States. Serving as a comprehensive platform, Relay enables small business owners to take complete control of their cash flow and financial management with ease and efficiency. Through its user-friendly interface and robust features, Relay empowers businesses to organize income, expenses, and reserves with up to 20 accounts, including high-yield savings options. With the flexibility to issue physical or virtual Visa® debit cards, send and receive ACH transfers, and access secure collaboration tools for team members and financial advisors, Relay offers a seamless and tailored banking experience tailored to the unique needs of small businesses.

At the core of Relay's offerings lies its commitment to providing no-fee banking services, ensuring that small businesses can thrive without the burden of traditional banking fees. Each Relay account is FDIC insured up to $2.5 million through its partner bank, Thread Bank, offering peace of mind and security to business owners.

Key Features

1. No-Fee Banking. Relay provides core banking features without account fees, overdraft fees, or minimum balance requirements, offering financial relief to small businesses.

2. Multiple Accounts. Users can create up to 20 accounts online, allowing for organized cash flow management, with options including 2 savings accounts offering competitive APY rates.

3. FDIC Insurance. Each Relay account is FDIC insured up to $2.5 million through its partner bank, Thread Bank, providing financial security.

4. Integration with Accounting Software. Seamless integration with accounting software like QuickBooks Online and Xero streamlines expense tracking and financial management.

Pros and Cons

Pros

Cons

Reliability

Relay's reliability is underscored by its favorable ratings on both the App Store and Google Play. With an average rating of 4.7 stars out of 835 ratings on the App Store and 4.5 stars out of 359 reviews on Google Play, the platform has garnered positive feedback from users across different platforms. These ratings reflect the satisfaction of many users with Relay's performance, usability, and features. However, individual experiences may vary, and users should consider their specific needs and preferences when evaluating the reliability of the platform for their business banking needs.

How to Apply for Relay Banking Services?

1. Visit the Relay Website. Begin by visiting the Relay website to initiate the application process. The website provides comprehensive information about Relay's features, benefits, and eligibility criteria.

2. Create an Account. Click on the "Sign Up" button to create a Relay account. You'll be prompted to provide basic information about your business, including its legal name, industry, and contact details.

3. Verify Your Identity. As part of the application process, Relay will require you to verify your identity and the identity of any authorized users associated with your business. This typically involves providing government-issued identification and other relevant documentation.

4. Complete the Application. Follow the on-screen instructions to complete the application form. You may be asked to provide additional information about your business, such as its structure, revenue, and banking needs.

5. Review and Submit. Take a moment to review the information you've provided for accuracy and completeness. Once you're satisfied, submit your application to Relay for review.

6. Wait for Approval. After submitting your application, Relay will review it to ensure that your business meets its eligibility criteria. This process typically takes a few business days, during which Relay may contact you for further information or clarification.

7. Receive Approval. Once your application has been approved, you'll receive confirmation from Relay, along with instructions on how to access your new Relay account and begin using its features.

8. Set Up Your Account. Follow the instructions provided by Relay to set up your account, including creating login credentials, customizing your account settings, and exploring the platform's features and functionality.

9. Start Banking. With your Relay account set up and activated, you can begin using its banking services to manage your business finances, organize cash flow, issue debit cards, and more.

Conditions and Requirements

Conditions

1. No-Fee Structure. Relay offers core banking features without account fees, overdraft fees, or minimum balance requirements, providing financial relief to small businesses.

2. Multiple Account Options. Borrowers can create up to 20 accounts online, including savings options with competitive APY rates, facilitating precise cash flow management.

3. Visa® Debit Cards. Relay allows issuance of up to 50 physical or virtual Visa® debit cards with customizable spending and ATM withdrawal limits for enhanced control over business finances.

4. Security Measures. Relay implements robust security measures, including two-factor authentication and role-based permissions, to safeguard sensitive financial information and prevent unauthorized access.

5. FDIC Insurance. Each Relay account is FDIC insured up to $2.5 million through its partner bank, Thread Bank, providing an additional layer of protection and peace of mind for borrowers.

6. Auto-Transfer Rules. Relay allows borrowers to customize auto-transfer rules to automate cash movement between accounts based on dollar amounts or percentages, optimizing efficiency in money management.

7. Customer Support. Relay offers personalized customer support via email, ensuring borrowers receive assistance tailored to their specific needs and inquiries.

Requirements

1. Business Entity. Relay clients must operate as U.S. corporations, LLCs, general partnerships, or sole proprietors.

2. Operating Presence. The business must have an operating presence in the United States.

3. Legal Compliance. Any small business owner must comply with all applicable laws and regulations, including those related to their industry and business activities.

Ways to Receive the Money

1. ACH Transfers. Borrowers can receive funds directly into their Relay accounts via ACH (Automated Clearing House) transfers. This electronic transfer method allows for quick and secure transfers of funds between bank accounts, typically within 1-2 business days.

2. Wires. Relay facilitates incoming wire transfers, providing a fast and reliable way for borrowers to receive large sums of money domestically or internationally. Wire transfers often offer same-day processing, making them suitable for urgent financial transactions.

3. Direct Payments. Borrowers can receive payments directly from clients, customers, or other businesses into their Relay accounts. This can be done through various payment methods, such as bank transfers, electronic invoices, or online payment platforms like Stripe or PayPal.

4. Online Sales Platforms. For businesses engaged in e-commerce or online sales, Relay supports integration with various online sales platforms like Shopify, Square, and Stripe. This allows for seamless processing of online payments, with funds deposited directly into the borrower's Relay account.

5. Third-Party Payment Services. Relay may also support the receipt of funds through third-party payment services, such as Venmo or Zelle, depending on their compatibility with Relay's platform and banking services.

Products

1. Checking Accounts. Clients can create up to 20 checking accounts with Relay, providing ample flexibility for organizing income, expenses, and reserves. There are no account fees or minimum balance requirements associated with Relay's checking accounts.

2. Savings Accounts. Relay offers two savings accounts per business, allowing borrowers to set aside funds for future needs or emergencies. Savings account balances earn competitive APY rates, with rates ranging from 1% to 3% depending on the balance.

3. Visa® Debit Cards. Borrowers can issue up to 50 physical or virtual Visa® debit cards with Relay, providing convenient access to funds for business expenses. The Relay Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa® debit cards are accepted.

4. ACH Transfers. Relay facilitates ACH transfers, allowing borrowers to send and receive funds electronically between bank accounts. There are no fees associated with incoming ACH transfers, making it a cost-effective way to manage payments and receipts.

5. Wires. Borrowers can send and receive domestic and international wire transfers through Relay, providing a fast and reliable way to transfer large sums of money. Relay charges a nominal fee for outgoing domestic and international wires ($5 and $10, respectively), ensuring competitive rates for wire transfer services.

6. Mobile Check Deposits. Borrowers can deposit checks into their Relay accounts using the Relay mobile app, providing a convenient way to access funds without visiting a physical bank branch. This feature eliminates the need for manual check deposits and accelerates the availability of funds for business use.

7. Integration with Accounting Software. Relay seamlessly integrates with popular accounting software like QuickBooks Online and Xero, enabling borrowers to streamline expense tracking and financial management processes. This integration enhances efficiency and accuracy in managing business finances, ultimately saving time and reducing administrative burden.

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Reasons for Getting Rejected for Relay Services

1. Incomplete or Inaccurate Information. Providing incomplete or inaccurate information during the application process can lead to rejection. It's crucial to ensure that all required fields are properly filled out and that the information provided is truthful and up-to-date.

2. Failure to Meet Eligibility Criteria. Relay has specific eligibility criteria that businesses must meet to qualify for its services. This may include operating as a U.S. corporation, LLC, general partnership, or sole proprietorship with an operating presence in the United States. If a business does not meet these criteria, its application may be rejected.

3. Legal Compliance Issues. Businesses that are not compliant with relevant laws and regulations, including those related to their industry or business activities, may face rejection. This could include businesses engaged in prohibited activities or industries, such as cryptocurrency exchanges, firearms sales, or unlawful internet gambling.

4. Verification Issues. Relay requires applicants to undergo identity verification, typically through government-issued identification and other relevant documentation. Failure to provide sufficient verification or discrepancies in the information provided may result in rejection.

How to Pay for Relay Services?

1. Direct Debit or ACH Transfer. Many businesses opt to set up direct debit or ACH transfers to pay for Relay services. This involves authorizing Relay to withdraw funds directly from the business's bank account regularly to cover any fees or charges associated with the services used.

2. Credit or Debit Card. Businesses may choose to link a credit or debit card to their Relay account to automatically pay for services. This option allows for convenient and automatic payments without the need for manual intervention.

3. Bank Transfer. Some businesses prefer to initiate bank transfers manually to pay for Relay services. This involves transferring funds from the business account to Relay's designated business bank account using the provided banking details.

Alternatives

The PNC Bank Treasury Enterprise Plan caters to small and medium-sized businesses with higher transaction volumes by offering a comprehensive banking package. This plan includes a PNC Analysis Business Checking account paired with either the Premium Business Money Market account or the MMDA Sweep account. With up to 2,500 free transactions and $50,000 in deposits per month, it suits businesses with substantial transaction needs. Additionally, the plan provides access to Cash Flow Insight tools for efficient management of accounts receivable and payable, invoicing, and payments. While there is a $50 monthly fee, businesses can waive it by maintaining an average combined balance of $30,000. Furthermore, the ability to consolidate transactions and fees across multiple business checking accounts adds flexibility to account management under this plan.

Axos Bank's Basic Business Checking account stands out for its absence of monthly maintenance fees, minimum balance requirements, and unlimited fee-free transactions, making it an appealing option for businesses seeking cost-effective banking solutions. Moreover, it offers unlimited domestic ATM fee reimbursements, up to 60 fee-free remote deposits per month, and two outgoing domestic wire fee reimbursements monthly. Despite lacking interest earnings and an extensive list of business tools or third-party integrations, it remains compatible with QuickBooks. As an online bank, Axos Bank provides convenient access to banking services, although it does not offer branch banking.

The LendingClub Tailored Checking account emerges as a favorable option for businesses looking to earn rewards and save money, boasting minimal fees and robust features. Partnering with Autobooks facilitates seamless digital invoicing and payments, complemented by unlimited transactions and ATM fee rebates for out-of-network transactions. Notably, the account earns 1.50% APY on balances up to $100,000, with 0.10% APY on balance portions exceeding $100,000. Additionally, signature-based debit card transactions can earn 1% cash back, provided account requirements are met and a minimum balance of $500 is maintained. Although there is a $10 monthly maintenance fee, it can be waived with a $500 average monthly balance, making it a valuable, low-fee, cash-back business checking account.

Chase Business Complete Checking offers a blend of advanced digital tools and extensive branch network access, making it an attractive choice for businesses seeking convenience and flexibility. With features like QuickAccept? for accepting credit card payments via the Chase mobile app and unlimited electronic deposits, it caters to businesses of varying needs. Despite a $15 monthly maintenance fee, which can be waived through multiple methods, and a cap of 20 in-person transactions per month, Chase Business Complete Checking provides a welcoming environment for businesses looking for comprehensive banking solutions.

Loans like Relay

OnDeck

OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.

Funding Circle

Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.

Credibly

Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.

Fundbox

For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.

Editorial Opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

• GoKapital Account Review
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• GoKapital Mobile Apps
• GoKapital Reviews

Sources

• Relay Financial
• Best Business Bank Accounts Of February 2024
• Best Business Checking Accounts of February 2024