What To Look For In A Good UK Business Bank Account

Your business bank account is a vital part of your enterprise and it makes sense to get it right first time. You may think that all business bank accounts in the UK offer similar or the same services, but in reality if you do your research and shop around you may be able to make savings on charges and avoid paying for services that you don’t need.

Your relationship with your bank is an important one, especially if you want to raise finance, obtain or increase an overdraft, or restructure your business. In fact, if you do not have a good relationship with your bank, it could mean the difference between survival and failure.

You may have been with your bank for several years in a personal capacity, but they may not offer you the types of facilities you need for your business. By all means look at the accounts your bank offers for business customers, but be prepared to compare them with others.

Of course, if you are a sole trader you are entitled to continue to use your personal bank account for your business needs, but it may become more difficult to keep track of payments, turnover and taxable charges if you are combining business and personal funds together.

Bank Charges & Interest

Some business accounts offer free business banking for the first year, and then there are charges for each direct debit, standing order, cheque that you issue and/or pay in, as well as high interest if you use an overdraft. Charges can become substantial should you go over your agreed overdraft limit. At present, you are unlikely to obtain a great rate of interest on your deposit balance, but at least make sure that you aren’t paying over the odds for day to day banking.

Use A Name You Trust

This may be obvious, but it is very important to use a bank that has a well-known and trusted reputation in the UK marketplace. In the alternative, if you are interested in an internet bank, make sure that it is owned by one of the large high street banks.

Your Bank Manager

Most of the large well-known banks have a dedicated small business team, of which you may be assigned a relationship manager who will be your first point of contact for all your business banking needs. These teams are generally very good at dealing with the demands and requirements of small businesses, and have simpler processes for setting up business banking than for larger commercial organisations.

Online Banking

Being able to check the status of your bank accounts day or night is becoming increasingly important. If you are paid or make payments by electronic transfers –internet banking is likely to be a vital part of the financial administration of your business.

Rather than having to telephone your bank, or to wait for your statements at the end of the week, fortnight or month –you can check to see whether a customer has paid you, or whether a payment has left your account. The majority of banks now provide an internet banking option, but it’s worth checking the security methods before you make your business bank account application.

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