As a Sole Trader - do i really NEED a A&L Business Account?

scorpio13

Hi guys, i'm a Sole Trader and have a small internet-based business.

I get the odd sale here & there but not making huges amounts, by any stretch of the imagination!:(

I have an Alliance & Leicester Business account which i pay £5 a month for the 'privelege' of using.:mad:
I don't have a Debit or Credit card either, so why should i stay with A&L, they're not doing me any favours at all!

My question is, as a Sole Trader.....is it essential to have a Business Account - Can i not transfer to a regular Current Account?

HC_2

I'm a sole trader, and I have an ordinary current account for my business transactions. As far as I know (I've been a sole trader a good few years) there's no problem with it.

Leralc

You run the risk of your bank closing your current account if it gets reported! if you read the T&C's of your accout they are well within their rights to do this :rolleyes:

We have a business accouny with Abbey - its FREE FREE FREE !! especially given that most of our transcations go through paypal and very rarely do we pay money in by any other means !!

once the account was set we had no problems, except at the moment you cannot pay stuff in over the counter - it has to be posted to them and cash has to be processed through the machine in the branch....but i would recommend them especially cos its FREE !! :j

http://www.anbusiness.com/

HC_2

Cahoot have no problem with it. I checked before I opened the account.

scorpio13

Leralc wrote: »

You run the risk of your bank closing your current account if it gets reported! if you read the T&C's of your accout they are well within their rights to do this :rolleyes:

Not quite sure what you mean by this?

regularsaver1

all account t&c's say they are for personal use only

HC_2

regularsaver1 wrote: »

all account t&c's say they are for personal use only

I can't find anything saying that in the Cahoot T&Cs, and they know I use the account for business and are perfectly happy.

Leralc

I bank with First Direct and if you are reported (by someone, Banking Rep, Clients!) for using your accounts for Business purposes it <i> could </i> lead to all accounts being closed....

If you already have a business account you may as well stick with it but move it to Abbey....

regularsaver1

HC wrote: »

I can't find anything saying that in the Cahoot T&Cs, and they know I use the account for business and are perfectly happy.

yeah i agree with you, i just looked and didnt see anything either

i take my comment back

blue_monkey_2

Barclays are free for the first year. Abbey seem to be VERY selective on who they want using their business accounts. i had been an Abbey customer for 12 years, never OD,doing around 5-7k per month and they told me that I could not have an account. All you do is fill in a form, if you tick the right boxes you get an account.

Barclays have been really helpful, you get it free for the first year and then you have to pay for stuff like statements, paying cash in etc... we get around this by paying cash into hubbys Barclays account and then doing a transfer (for free!!) also you can view your statements online so you do not need these either.

I found it easier to do everything through the business account, stopped me spending the money too as it always looked like I had mroe than I did!!

Find a business bank account that offeres a face to face opening.

BODY_IN_WHITE

The danger of using a private account as a business one is if you have to deposit a large number of cheques (not the amount) from different sources
a bank can ask questions! I'm a self employed handyman banking with HSBC
they've just hiked up there charges AGAIN, I get stung if I take it out, and put it in (even more if it's cash) £50 for an overdraft £50 c/card it's endless
who's best anyone? they don't like us jumping ship to often for the free year
we can get refused....help