Things to keep in mind when looking for a Business Bank Account
As when opening up any new bank account, it is important to shop around in order to find a suitable bank with which to open a business account. The services banks offer (as well as their charges!) vary immensely, so it is important to find one suitable for your business. It may be of benefit if you choose a bank with a local branch which has a department specialising in business accounts.
The needs of your business will obviously determine which type of business account you decide to open. Types of business accounts include:
- Current account – for daily transactions, payments and receipts.
- Instant access deposit account – an account for any cash not needed for daily operations.
- Term deposit account – for funds not needed in the short term
- Foreign currency account – for trading overseas
- Loan account – for any loans you take out
- Merchant account – to allow you to accept debit and credit card transactions.
You may need more than one of the above, and do not have to get them from the same bank if you feel you can get a better deal elsewhere. However, it is worth noting that you may get better terms if you commit your business to just one bank.
When you have chosen your bank, you will need to set up a meeting to open the account. You will need to bring with you details of your business’ intentions, information of where the finance is coming from, a business plan, a certificate of incorporation for limited companies and information about your credit history.
It is important to maintain a good relationship with the bank when you’re business account is opened, and to do this it is important to monitor your financial situation regularly. This can easily be done online. As with current accounts, using internet banking for your business account is possible to transfer money, pay bills and view statements.Next Article: ISAs