Establishing Bank Accounts
Posted 12 Sep 13
If you are establishing your business, you will be considering bank accounts that work for you, your business and your pocket.
You need to trust in your bank and it’s important that you get great value for money - cash flow for a small business or a startup company can easily go very wrong, so managing your finances at the very beginning is essential.
Perhaps you are thinking of switching banks? Do be sure that you research your bank, its fees and the support offered before going ahead.
Your bank should be able to give you the service, support and guidance that you need to open a bank account in your company name, but they should also be very honest about their charges.
Here are some tips on what to compare when you are looking into establishing a business bank account:
1. Bank charges - every bank will charge a fee for missed direct debits and being overdrawn, some more than others.
2. Don’t be tempted to take an ‘unmissable’ offer where fees will arise later on; you may not get the time to switch or remember to before prices rise, resulting in being charged at a high interest rate or higher fee than other banks.
3. Do they offer a credit card alongside your business bank account?
4. Will you get online banking access - the most convenient way of banking for many of us.
You will require a business address or home address to open your bank account, and other proofs of identification may be required.
If you are looking for funding by way of a loan or overdraft from your chosen bank, you may be required to compile a business plan which takes logic and accurate figures based on your predictions before they will consider your application.
Of course, this is fairly straightforward when it comes to being a sole trader. However most companies want to grow and develop and showing the bank your plans at the early stages will help you further down the line when you do need funding.