Even if you are a business veteran or has started your business, a business bank account is necessary. It makes things a lot easier for you especially when you balance your cashbook. If you do not open a business bank account, you will have trouble managing your business finances.
You may decide to try the bank where you have your personal account. Since you already have a track record with them, they will be more supportive. However, it is still advisable that you get the best deal for your business rather than settling on one bank. Most banks offer different services and products and you should look for something with good flexible benefits for your growing business.
Shop around and compare banks on the high street and always ask the following:
?Do they have small business team that gives advice for start ups?
?What types of business bank account do they offer?
?Do they charge extra for the services?
?How often do they charge (per transaction or one off)?
?What are the possible hidden charges?
Choosing the Business Bank Account
This depends on your needs and how you run your business. A fixed fee account will be better if you have large numbers of transactions, instead of paying fees per transaction. If you need standing orders and free direct debits, the bank you chose will help you decide what type of business bank account you need.
If you want, you can even choose to open several business bank accounts with different banks especially if one single bank can not provide all your needs. Look for banks that can offer better deals if you commit all of your business bank accounts to them.
You will need the following accounts:
?Current Account - Used for everyday on going costs. Look for a bank which offers this kind of business bank account with acceptable interest rates.
?Loan Account - a business bank account that is used to monitor your loan accounts. Review the banks' different options for loan accounts because sometimes it is better to get a personal loan instead.
?Foreign currency account - You will need this business bank account if you have deals overseas. This saves you from paying multiple large conversion charges.
You should regularly check your accounts. Consider online banking. Opening your business bank account online will be better as all banks have this free of charge, sometimes even offering lower fees.
Choosing a bank for your business is very important; realize that what you need is an institution that gives you flexible or suitable terms for your business. This means that you need to choose a business bank account that is customized for your individual business. Remember that you have many choices for banks. If it does not work out as planned, just change to another one, but do not forget to do your research or you might end up worse than before.
When you have decided what business bank account and which bank you are going to work with, set up a meeting to discuss the requirements you need.
