If you’re a business owner, you’ll be looking for an account that is tailored to suit the needs of your business. And if you’re a limited company or a partnership, you’ll need a business bank account to run your company. So, what sort of things might you consider when selecting your business bank account?
What are Business Bank Accounts?
Business bank accounts are fairly similar to standard bank accounts. By keeping your business transactions separate from your personal affairs, it’s a lot easier to formulate your accounts at the end of the year.
There are separate accounts available for start-up companies and established businesses. A business will normally qualify for a start-up account if it’s in the first year of trading or if the account you’re opening is the first business current account.
Benefits on Offer
There are plenty of benefits on offer to support start-up companies, such as free banking for up to two years (NatWest Business Start-Up). But there tends to be free spells for established businesses as well.
After this, the fees for business banking will vary. Some accounts offer a flat monthly fee, while others charge per transaction. If you can avoid banking with cash, you may find it cheaper to opt for a plan that deals only with electronic payments.
Business bank accounts come with a range of different features, including overdraft facilities and business support services, all of which could prove useful for your business.
Whichever account you choose, they will all have the facilities to handle debit and credit card payments. And if you establish a relationship with a lender by opening up a business bank account with them, it may prove useful if you need to borrow money for the business in the future.
Customer Service & Convenience
What else might you consider? Does the bank offer any guarantees about the quality of its service? You might want to think about how much responsibility a bank will take to resolve your queries.
Also, in this busy day and age, it’s worth considering what internet services or mobile banking apps are available (e.g. Barclays). This can be useful to manage your account with a minimum of fuss, allowing you to concentrate on your business rather than worrying about your bank.