SB: Business Bank Accounts

Savvy_Sue

Start by doing a search of this board for small business banking and you'll get 13 threads for starters, some of them quite long. At an early stage, work out what services you need - paying in lots of cash and making overseas transactions are probably not high on your list of priorities, but taking credit card payments might be (in which case look at recent posts about that!) If you need an overdraft, you need a business plan to justify it - well you need a bus plan anyway, but you need it even more for an overdraft. Probably worth asking your own bank first what they'll offer, and if it's good initially then think about changing it later if it doesn't work out.

bridiej

Since almost every week we have a new thread asking about business banking I've made this sticky and will add the recent threads into here so they are in one place and easy to find.

:snow_grin

bargainhunt_3

When I looked into this the cheapest options were:

Abbey - a very basic account with no real cash handling or branch service, but with lots of free transactions. If you stay within them it's totally free. You simply do everything via post, internet and phone. Took about 2-3 weeks to get everything.
Alliance & Leicester - Free or cheap depending on how you look at it with more services, such as the ability to use post offices and branckes. However I am told they take ages to open an account.

All the other banks usually offer some cheap deal for 18 months then there is a set fee. The main benefits of the other banks are access to their branch network, which means you can get help over the counter or pay in cash. If you are not expecting to do either I would go with Abbey.

If you need to take credit cards there are a lot of options, but the cheapest for UK cards I have come across is Nochex (20p + 2.6%) and no charge backs. The other option similar to this is Paypal, beyond that an expensive service like Worldpay or a proper merchant account which is even more expensive. Nochex lets you accept online payments only either via your site or email. However its no charge back rule only applies to sales of up to 100 for non-Nochex members or 300 if they have signed up.

If you use the banks above and Nochex it should be possible for you to avoid any fixed costs for banking. I was advised that in the early days avoid as many fixed costs as possible, once you get established and know what your cash flow is then perhaps you can shop aroud for better services/deals.

FYI. Although I am not longer involved in the business (I am lucky enough to have family running it for me as I work abroad), to date we have totally avoided any fixed costs for banking. Where as had we used Worldpay and a normal account we would have been forking out around 50 quid per month for absolutely nothing. Also for anyone who is looking for a second income as my business was then avoiding fixed costs in an even better idea, as you are unlikely to end up with a huge turnover.

dandare

Thanks for all your advice,by the sounds of it the abbey should suit my needs to get the ball rolling anyway, but ill look into it a little more.
thanks again.

revoman_2

My limited company account is with the Cooperative Bank , and the current account interest rate is rubbish. Can anyone recommend a good bank which also has a decent interest rate for a limited company currnet account? Ta.

elster_2

amc bank is mine, been with them for years , look at the benefits you get and the total lack of charges along with 3.5 % ish i think interest , website = http://www.amconline.co.uk/amc/html/home/bank.html

revoman_2

Elster, sounds good so I've had a look and I'll be contacting them for sure. Thanks very much.

Rhino666

If you are a contractor like me with a limited number of transactions per month you cannot go wrong with Cater allen. I have been with them for nearly nine years now. Free banking and good interest if the number of transactions is low.

jr_xyz

what is your company called revoman?

revoman_2

Company name is none of your business, you nosie thing!

Otherwise, Rhino666 I'll check that one out, ta.