Choosing a Business Account
If you have recently started a new business you will no doubt be looking into opening a business bank account. This guide will point out what to look for in your search for the perfect business bank account.
It is always tempting to stick with the bank you know and trust, the same one with which you hold your current account or savings account, but by doing this you could be missing out on better deals, such as higher interest rates for accounts in credit and lower charges.
Hopefully your business, over time, will be making a lot of money and by choosing the wrong account you could be missing out on a significant amount that you could have accrued through interest.
What to Look For
So, what should you look for In a business account. Well, you simply need a system that will allow you to conduct cashflow in and out of your business.
You may also need to have the ability to process electronic transactions, so in conjunction with the standard chequebook and paying in book, you may also require a direct debit or standing order facility.
By opting for these you will also enhance the day-to-day running of your business and keep costs down.
Depending on how many cash and cheque transactions you carry out will determine how high the charges are that you will incur. If you are aiming to make more electronic transactions then you should opt for an account that offers these for free, or at a low-cost. The same goes for if you anticipate using a lot of cheques.
You also need to be aware of the level of accessibility your account will have, for example, online or telephone.
Both of these facilities have become more and more common amongst business accounts and will usually come as standard, but it is worth checking.
Compare the Market
Before you settle on one account, make sure you have compared the market. Ideally you should compare your top three accounts. This can be done simply by using a comparison website, which holds all of the information that you will need to help make your decision.
It is also very important to look beyond any special offers that you are offered by banks because you will need to be able to maintain your account once these offers have expired.
However, when you do find the perfect business account that serves all of your financial needs, you will need to start the application process. Firstly, you should make an appointment to see the bank manager or an adviser who will go through your business with you and discuss your options.
When it comes to individual accounts, it is ideal to have a personal adviser that you can contact via a direct telephone line or email address.
Alternatively, many banks offer a dedicated business team or a dedicated help-line and there are usually advisers on hand in branches if you need them.
Before you apply for your business bank account, it is important that you take all of these things into consideration. Remember, that just because an account is with a bank you trust, or has really good introductory offers doesn't necessarily mean it is the right account for you and your business.