Business Accounts - Choosing and Using?

Setting up a Business Account is an important step within the business start-up process. By the time you are ready to open an account, you are almost ready to start trading. Having this account will allow you to open supplier accounts, provide proof of trading, plus ensure all business related costs are coming from one account. There are several things to consider when opening an account and some of these include:

Period of free banking - Now this might sound strange, as you don't normally pay for deposits/withdrawals from a personal account, however with a business account things are slightly different! A business account charges for deposits and withdrawals, so it is important to understand what these costs are once your period of " free banking" is over. Now some banks typically have a 12-18 month window of free banking, giving you the opportunity to get yourself established before they start charging, however some of the less well known banks do offer unlimited free banking.

Existing bank - Although it might be tempting to go to your existing bank, it is always wise to shop around. You could be missing out on lower charges, better interest on your credit, plus you may find that the services from your existing bank are not as comprehensive as others. On more longer term basis, you may be missing out on vital services for your business.

Small Business Team - It is important to go for a bank that has a Small Business Team in place. This will ensure the set-up process is simpler, plus they will be used to dealing with small businesses and importantly their specific needs. It is important to know what knowledge they have, plus the types of businesses they deal with, making life a little bit easier for you. Some banks, particularly ones with lifetime free banking, only offer call centre and online support, which can prove to be challenging to access at the best of times!

Discretion Levels - In hard times, you may need to go to the bank for a little extra capital to help you along your way. Now some banks allow the Business Relationship Manager to make the decision (up to a certain amount),whereas others have to get authorisation from their Superiors, which could take days or even weeks. It is important to know at the outset who makes those decisions, what those levels are, plus the timescales involved. It is important that the bank works for you in both good and bad times!

Add-Ons - As a new start-up, you may find that when sat in front of a Business Relationship Manager you get confused as to what your actually getting! Do you need Bookkeeping Software? How about Insurance? Wait a minute, your only wanting to open a business account, why are you being told about all these sevices? Well, its very simple, banks are selling machines in their own right ant it is important to note that you don't have to take on any of these services through the bank. It may also prove to be more costly than going independently and ultimately a waste of money. You may end up paying for services you don't need and products you're never going to use, so make sure you ask for what you need.

Access - Nowadays most banks offer telephone and internet facilities, to ensure you have access to your account as and when you need it. It is important for you to know what access there is, and whether these facilities are included. If they are not, then it may prove to be a major inconvenience at times when the banks are not available.