SB: Business Bank Accounts

Comper21

Thanks for this. Running a small business they get you all ways. Quite frankly I dont know why we bother.

barginboyrob

so the suggested bank is...

if I only need it for a website and am just starting up...unlikely to receive cheques, basically I want a business bank account so I can use protx on my website..

Looking for one with the cheapest fee's but with no monthly charges (as I don't know what i'll be getting yet!)

Savvy_Sue

barginboyrob wrote: »

so the suggested bank is...

I've ALWAYS said "It depends ..."

It depends whether you need cash paying in and withdrawal facilities - if you do, then a LOCAL branch scores over one further away.

It depends whether you pay in lots of cheques each month, or only a few.

It depends whether you write lots of cheques each month, or only a few.

It depends whether you need to borrow money - or expect to need to borrow money.

And finally, even if there were ONE PERFECT bank for all the above (which there isn't), it depends whether the perfect bank wants your business or not!

Sorry to be less than helpful ... but having changed our bank account to one which doesn't have a high street presence, and having been promised we would be able to cash cheques at the PO, we then ended up having to make special arrangements with two 'normal' bank branches of our choice for withdrawing and paying in cash. Fortunately we don't deal with much cash, but if we did it would be a bit of a nightmare. Not that it would help if we COULD use the local PO, because they closed that down too ...

welshgirlmel

What was the bank you used to have Sue?,
Mel

Savvy_Sue

Well, when I was running the PTA and out of school clubs, I used Alliance and Leicester (initially Girobank, but that's showing my age ...) Because I could use the PO for my cash needs (£100 in small change, anyone?) and it was much easier to get to the PO than a 'real' bank. Their 'Clubs and Societies' account was perfect for us. Some people say their phone service is cr*p, but I found it perfectly adequate (can't say the same for their personal banking!) That's all a few years ago though.

I was also working for a small charity at the time, and we used NatWest and Barclays, the former for convenience, and the latter because you could pay US$ cheques in ... Used to cost us an arm and a leg, but there were reasons for not changing.

Now I work for a larger charity: we used to be with the Coop, and now we're with Unity Trust. With the Coop we could use the PO for our cash banking, now we have to traipse off to a 'proper' nominated bank branch.

If I needed a business bank account, I'd start by working out what my likely needs were in terms of cash, paying cheques in, writing cheques etc. If I thought I was going to need a local branch service regularly (eg paying in or withdrawing cash), I'd visit the most convenient branches and find out what they offered which would meet MY needs.

If I didn't need cash in or out on a regular basis, I'd probably look at postal and internet options first.

but if you don't do that initial thinking, you could end up with an account which charges you to deposit cheques, charges you if you write too many cheques, and doesn't let you do what YOU want with YOUR money. I know you can change your business bank account just as you can your personal bank account, but with a little thought you might not need to.

jimthedrum

I've just tried to transfer from my lloyds business account as the free charges are expiring for me, to an abbey account and have been declined. the letter dosen't say why, but haven't had any problems credit wise to my knowledge. does anyone have any ideas why i might not be able to transfer accounts?
any advise would be great
thanks

nooksky

Hi, my partner runs a dog walking business and we have been using a normal current account for his business account.

I am now in the process of setting up an A&L business account but this got me to thinking whether there is any reason we actually need a business account?

The only benefit I can see is that customers can make their cheques out to the business name rather than my partners name. Apart from this, is there any other reason we should have a proper business account?

Thanks in advance

Savvy_Sue

apart from the benefit you've already spotted, it is easier to keep the business money separate from your personal money, which I'd say was even more important in a joint business. Your friend may be utterly trustworthy, but the best of us can have blonde or senior moments and pay cheques into the wrong account by mistake!

Also, if you ever want to open an account with a supplier, they may want details of your business bank account.

yebaws

Savvy_Sue wrote: »

apart from the benefit you've already spotted, it is easier to keep the business money separate from your personal money, which I'd say was even more important in a joint business. Your friend may be utterly trustworthy, but the best of us can have blonde or senior moments and pay cheques into the wrong account by mistake!

Also, if you ever want to open an account with a supplier, they may want details of your business bank account.

Some banks will tell you that you're not "allowed" to use personal accounts for business, although I doubt they would ever do anything about it in practice unless you started coming into the branch with hundreds of cheques and sacks of small change every day. If you want to "grow" the business in future and take out loans etc, your bank will probably insist on a business account. Also, If you want to have a merchant services account to accept credit cards, you'll need a business account.

Many people do run small businesses from personal accounts but, yes, it's vital to keep business and personal finance seperate, particularly for tax reasons. This can always be done by opening seperate personal accounts - one for business and one for personal finance

robert_harper_2000

£15k OVERDRAFT
27 x Cheques in
£58K Cash Credit
59 x Credit card payments in
73 x Bacs payments out
24 x Standing Orders
10 x Direct Debits
oh and quite abit of change - region of £700 per week. ...

Currently paying £900 per quarter which seems a lot. I'm an FSB member so have thought about the CO-OP but they are just closing down so don't think they will be local in a few months...
Suggestions? Is £900 per quarter a lot?