What to look for when selecting a business bank account
Due to laziness alone, we often do our business banking with the same people our personal bank account is held with. If you shop around, you won’t get much of a better deal financially (rates and services are generally almost identical) but you will find banks who offer better service, better personnel and advice.
Business banking is very different to personal banking. To begin with, your choice of banks is different and much more limited than with your personal bank account. You won’t get the benefit of the new rash of internet banks- but the high street banks are becoming more competitive for your business custom. This is because business banking is where they usually make some money.
You should expect at least to get your first year’s business banking free (provided you remain in credit). Thereafter you’ll be expected to pay a fee per transaction, so factor that into your cost base. You should also expect access to a business banking advisor; who is there to help. Tales of woe abound about these people- plenty of business advisors never call you up except to try to sell you things like mortgages, but Barclays in particular is improving by having advisors who are specialists in particular businesses e.g. construction, technology etc.
You should also get some sort of credit- even if it’s a card you pay off each month. And before opening your account, see what overdraft and loan facilities are available- you may not need them now, but you should know what their attitude to lending is so you’ll be prepared when you need it.
Finally, you have some options that may not be immediately apparent. As you may not be in your branch so often, smaller regional banks may be preferable to the big high street banks. The Allied Irish Bank, for example, has an astonishing record for looking after its business banking customers, but might not have been on your list.
www.bank.org.uk
