Choosing the most suitable bank account for your business is important. You want a service that will be easy to use and manage, and one which provides the service you need – leaving you free to focus on running your business.
The good news is that there is plenty of choice out there. In recent years, the number of established high street banks – so-called “legacy” banks – has been joined by an even greater number of alternative “challenger” banks. The majority of the latter have no expensive branch offices to maintain but operate entirely online – and the savings achieved by the use of such technology may be passed on to you, the customer.
Choosing your business bank account
The growth of many alternative banks means that if you are looking for a business bank account, your choice is wider than ever before.
So, how do you find the best business bank account for you? The first thing to note is that the best business bank account for you may be completely different to the business bank account that is best for one of your contemporaries.
Choosing a bank account that is the most suitable for your business depends on your own personal preference and circumstances. So, how might you choose from the business bank accounts available to find the most suitable one for you and your business? What are some of the features you might want to compare?
Ease of set-up
- all the high street banks offer business accounts, with the opportunity to apply online too. You may have a five to ten day wait until your account is open – while the bank conducts a credit check on the finances of your business;
- many of the online, challenger banks, on the other hand, can set up your business bank account in a matter of minutes, since in most cases, no such credit check is performed;
- your choice of business bank account may also be determined by the range of banking services you are likely to require;
- if you want to be able to discuss business decisions with a personal manager or have regular cash takings to bank, for example, you may almost certainly need to consider a bank with a physical, in-branch presence;
- if your needs can be satisfied by conducting your affairs entirely online – usually with the benefit of being able to do so while on the move, though banking and mobile apps – one of the newer, start-up banks may meet all your needs;
Loans and credit
- business loans and credit facilities (such as business credit cards) are also available from a wide range of banks – and the best rates may not be with the principal bank you have chosen for your business account, suggests the small business advisor Informi;
- you do not need to put all your eggs in one basket, therefore, but might want to think about “mixing and matching” different banks to meet your various business needs;
Fees and charges
- you are likely to encounter introductory offers which provide free business banking services for a certain period – typically this ranges between as little as three but also as long as 24 months;
- after that period, there are almost certain to be fees and charges for some – if not all – of your business banking transactions;
- the cost of your business bank account, therefore, is likely to be an important consideration.
While there are more business banking options than ever, if you are looking to open a business bank account, the services offered, and the cost of those services may differ widely. To find the best business bank account for you requires a careful comparison.