SB: Business Bank Accounts

sarah1980

Abbey is good for when you are first starting out, the free business banking is good if you a) live/work near a branch and b) don't need any other services (CHAPS foreign payments, merchant services, business credit card, overdraft, counter service etc.)

I was with them for 2 years when I first started up, but then as the business grew and I needed to accept credit cards, I found that no-one would offer me this service (I am in a high-risk industry for CC chargebacks) unless I banked with them. Which was my main reason for switching.

Also, if you ever have a large amout of cash to pay in, the max. is £3k per month. And the cut-off time for CHAPS is earlier than the other banks for some reason.

I also find that it is worth having a "paid" business account from a service perspective. Most business banks are bending over backwards to sign you up for their current account, and when you pay for your account you get more of a relationship with your bank manager, often they give you their mobile number/direct dial etc. which is more than worth what it costs me to run the account. If there is ever an emergency, I need a temp overdraft for example, I know I can speak to someone who knows me and knows my business and can make a decision without having to fill in reams of paperwork.

JFTR I am now with HSBC, free business banking for a year.

EDIT: Almost forgot, almost all of my customers are with one of the "Big Five" banks, and quite a few with HSBC. So I tend to get paid quicker cos it's quicker for BACS/cheques to clear from HSBC to HSBC.

stphnstevey

sarah1980 wrote: »

You can't do this if you are a Limited Company, only a Sole Trader.

Sorry, Sarah, you can.

There is no legal reason to have a business bank account (even for Ltd's). However, some companies might not deal with you if you don't (ie contractors often have this issue). Also, it's alot eaisier to keep business spending seperate from personal spending.

sarah1980

stphnstevey wrote: »

Sorry, Sarah, you can.

There is no legal reason to have a business bank account (even for Ltd's). However, some companies might not deal with you if you don't (ie contractors often have this issue). Also, it's alot eaisier to keep business spending seperate from personal spending.

Interesting, so if I were to have a personal bank account and someone wrote me a cheque to "Sarah1980 Trading Ltd" how would I pay that in?

johnllew

godsakes wrote: »

is there any better business reserve account options?

Kaupthing Singer & Friedlander pay up to 5.75% AER and have internet access.

http://www.kaupthingsingers.co.uk/deposits

stphnstevey

sarah1980 wrote: »

Interesting, so if I were to have a personal bank account and someone wrote me a cheque to "Sarah1980 Trading Ltd" how would I pay that in?

You wouldn't be able to. You would need to pay it into a account in the name of the cheque/business ie a business account.

However, there is still no legal requirement to have a business account, nobody forces you and lots of people manage with just a personal account, partically when starting up. However a business account is preferable out of convenience.

mossman_2

i am trying to start up a sml biz,i studied as a P.I.however in 2007 i went personally bankrupt ,now i am having trouble getting a basic buisness accout,can anyone help:rolleyes:

malc_b

stphnstevey wrote: »

You wouldn't be able to. You would need to pay it into a account in the name of the cheque/business ie a business account.

However, there is still no legal requirement to have a business account, nobody forces you and lots of people manage with just a personal account, partically when starting up. However a business account is preferable out of convenience.

You're misinformed. A limited company is corporate body, as in "person". A ltd co is just like a person. Same as if I pay you a crossed cheque you have to have a bank account so does a ltd co. VAT, IR, etc. will all demand such.

For small companies I'd suggest the FSB for the benefits one of which is free banking with the co-op plus a £25 pa loyalty payment. Deposit best rates are HBOS AFAIK, 4.85%, or check out moneyfacts web site.

As an side - Martin how about best business accounts page? There are only 2 web sites I know that compare saving accounts for business and none are very good as they didn't include deals I had seen. With banks fighting for our money I can't understand why they offer lower rates for businesses, and why so few offer any business savings accounts. Although I guess the fact that few do is the reason why rates are lower. Still doesn't explain why so few do though. Personal accounts are 6%+, business accounts struggle to get over 5%. I seen accounts offering 2% and below.

reedi

...Ive been business banking with the since 2004 and yes it's good they're free, but their customer service is really bad.

They use to offer a ring back service for business customers, it's gone now and Im currently on hold waiting for them to answer because they've recently changed the website for business banking and I cant get on.

So far Ive been on hold 57 minutes!

Really bad!!

yebaws

reedi wrote: »

...Ive been business banking with the since 2004 and yes it's good they're free, but their customer service is really bad.

They use to offer a ring back service for business customers, it's gone now and Im currently on hold waiting for them to answer because they've recently changed the website for business banking and I cant get on.

So far Ive been on hold 57 minutes!

Really bad!!

Abbey have made a monumental c*ck up of their ebanking "upgrade" which has left (from the sounds of it) thousands of customers - me included - without online access to their accounts for an indeterminate amount of time whilst they try and sort it out. I can only pay bills, find out account balances etc by calling them and going through a load of daft security question. Not surprisingly, it's taking about 45 mins to get through.

It completly defies belief that they can do this, but then they are a BANK and BANKS are often very good at MONUMENTAL INCOMPETENCE.

Anyway, for anybody else in my situation having to do their banking by holding for 45 mins before talking to some stressed guy with flu who shouldn't be at work anyway, I found this freephone number on saynoto0870 which will save you a bit (and even better Abbey will have to pay for the call): 0800 0565151. Just take some valium or do some yoga or whatever you do before you call.

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

DKLS

I use Cater Allen for my Ltd Co, and have had no problems, they answer the phone within 5 rings, and I get to speak to a human being at my local branch!!!

Shame Halifax cant manage the same quality of service.