Which Business Bank Account
Many people decide to open their business bank account with the same bank that holds their personal bank accounts. Your own
bank may be more supportive if you have a good financial track record and have built up a relationship with them.
When deciding on which business bank and which account is right, it is imperative to conduct an analysis of the specific services
that are required.
For instance, is there a facility to provide balance and statement enquiries to
keep track of the company's finance? In terms of borrowing, is factoring and
invoice discounting to raise finance against sales invoices available? Is there the facility
to take out a commercial mortgage to raise finance against business property?
It is also important to establish whether the prospective bank provides merchant services such as credit and debit card payments for
customers. This is crucial as it is important to make it as easy as possible for customers to pay.
Nowadays if a small business is not happy with its bank it can shop around to get a better deal.
Once you have a list of two or three banks that offer the appropriate products, level of service and methods of banking that suit the needs of
your business, it is important to check the finer details to ensure that you get the best deal in terms of bank charges, interest payments and
credit interest.
And this is where an online business bank switch service comes in, using the
British Bankers Association - See Business Account Finder.
This allows you to build account comparison tables that suit the particular circumstances of your business, and provides the option to view a
full breakdown of any accounts listed including the latest charges, interest and borrowing rates, and other services.
In addition it provides a breakdown of all business bank accounts that provide introductory offers and the facility to compare the full
details of two accounts side by side.
Research is the key to securing the best deal. Armed with a knowledge of the market, a business should not only be able to find a
better deal with another bank but it should also be able to negotiate improved terms with its current bank.
When comparing banks, it's a good idea to ask:
- Whether the bank has a dedicated small business team
- What services they offer
- How much those services cost
- How charges are levied - if there is a fee per transaction or a one-off charge
- Whether there are any additional charges - some banks charge you when they send out letters or if you exceed your agreed overdraft limit
- Whether there is a local branch - especially if you need to make frequent cash transactions
- If there are special offers for new businesses or for transferring from another bank
Details of the Business Banking Code can be found on the Banking Standards Board website.
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