Choosing a business bank account is of one the first tasks when starting a new business. It is good practice to shop around and check all the major banks to see what they are offering in terms of packages, benefits and costs. New business owners who are starting a company should not just focus on the well-known banks but also look at other options available.
Compare Business Bank Account Charges
It can be common practice for sole traders and many new business owners to simply use their personal business accounts which in most cases are cheaper to use and free. Limited companies however need a business account and there are many great comparison sites such as and money.co.uk and Moneysupermarket.com that compare prices across all the well know banks. The things to look out for when comparing business bank accounts are standing charges and charges on transactions.
Research Business Bank Accounts
The majority of banks offer business bank accounts so do your research first. Some banks will attract new business owners with free banking. Remember to check what the charges are once the free banking is over. There are various charges that will differ between banks such as monthly account fees and charges for paying in cheques.
Remember that banks that cater for your personal finances might not be suitable for a business bank account. Shop a around and compare charges, fees and interest rates. Some banks also offer small business centres so do your research first to see which bank your feel comfortable with
Banking Online or Visiting Your Branch
The more you can do online, the lower your charges will be. Deciding how cash will flow in and out of your business will be important. Decide whether payments from customers will be made online by debit or credit card or by cash or cheque which will involve visiting your bank regularly.
If you are visiting your branch regularly then ensure there is a branch close to your business. A bank that has various branches around the country will be an important consideration if relocating or looking to branch out in the future. Look online at reviews to ensure your are getting the best information prior to selecting which bank you will use for your business account.
It is important that you choose a bank that offers continual support and possibly a business bank account officer or contact so support is readily available. Should you have any queries or concerns, support is then readily available. Visit a few banks and make an appointment to see each bank so you can review accounts, benefits, charges and fees. Don’t just choose the first bank you visit. The time you invest to make a better informed decision will benefit you later.
Lending is essential for start up companies so make sure that bank you are choosing offers easy finance. Check how much each proposed bank has loaned out to businesses like yours in the past 12 months. This information should be readily available. If your chosen bank does not have a history of providing business loans then avoid banking with them. Do your research on lending criteria to see how stringent their criteria are. If it is too strict then your chances of securing a business loan in the future will be low.