Written by: Steven Petter
If you run small home business to support your family then as it grows you may want to consider a Business Bank Account to give your small business more security and a greater sense of professionalism when dealing with suppliers. The benefits of having a business relationship with the bank also means support and structure for your finances.
Shop around for business bank accounts
Business bank accounts are effectively current accounts but in the name of a business rather than a person, in fact if you are a sole trader you can run your business from your own current account but this isn’t always best as your business grows. When looking at business accounts make sure you shop around and try to get the best deal, it’s not always best to go with your own bank as they may have excellent services when it comes to private accounts but could lack the support necessary for business banking.
Make sure when you are looking that the account gives you the best possible interest ratings along with reasonable rates for the bank, in many cases they will offer the first year of trade with no rates on things like cheques, card payments and cashing, however make sure you are fully aware of what charges there will be once you start to pay and how much they will be. Ease of money transfer should be one of the biggest considerations as you don’t want to be waiting forever to get your money and you don’t want your suppliers to be left short as this may incur more charges.
In this day and age you may also want to ensure your account has online access as this is by far the most efficient way to control your finances and can make paying fees and getting payments from people much easier. If you are a business which only takes cash from people yo may want to opt for a bank which has the most accommodating opening hours since you may not be able to get there until the weekend or in the early evening. Some banks will support you with taking electronic payments and with a business account you can start taking online payments using services like PayPal, so as to offer a wider spectrum of payments to your customers and also making transaction more secure so you don’t have to be carrying thousands of pounds worth of cash to the bank every Saturday.
A lot of banks now offer dedicated small business teams who will support you, especially in the early days of your business, so finding an account which offer business services such as financial advice, loan applications, telephone or internet support teams and more could be beneficial to you even if you end up paying slightly more for the service in the long run. Always make sure you are aware of any hidden charges and make sure you have the phone number of the banks business accounts manager to hand so that when you are checking your accounts you can contact him or her at the earliest possible time.