SB: Business Bank Accounts

veganline

I've never understood why people tolerate A&L Commercial. Their new web service is better than the old, but it seems to be a payroll system, with layers of different passwords needed - three in all - and a requirement to change them at intervals. For all the complication, there is next to no service.

If you've got an A&L account already it's quite cheap to keep in case someone insists on writing a cheque to your trade name. For some reason they charge me £2.75 a week but it's still cheap. (do other people really get these accounts for free?)

I have to agree with the person who connected their merchant account to a personal account. Just have two personal accounts and use one for business. I think I read somewhere that the tax man likes separate bank accounts.

It can be cheaper to get a merchant account through a buying group than through a bank. I used the excellent free buying group called PPG-uk.co.uk. Others are http://www.pelicanbuying.co.uk/, stag buying group, http://charitiesbuyinggroup.com/, http://www.fpb.org, http://www.cardsave.net, and a fair proportion of trade associations. They seem geared to people with a track record.

http://www.fsb.org.uk/ get you free banking with cashback at the Co-op. For a one person business without staff, they cost something like a hundred quid, including legal insurance and I think a cheap deal for credit card processing. The cashback is £25 a year, fixed.

http://www.fpb.org/ have a similar name and benefits package. I don't see banking on the list but they might be worth checking.

itsonlyme_3

TallHall wrote: »

I'm trying to find out some views of the Banks to help me decide which to talk to when starting up a new small business. From your experiences which is the best or worst ?

I have been using the Abbey for 4 years for small business banking and have never paid a penny for the privledge. It is easy to stay under the limits for their free banking. Check it out!

linzibean

I'm going to be looking at setting up a business account soon - I am hoping to start a specialist book and merchandise store online at first but eventually in premises. I want a business bank account that will allow me to take payments online - I don't need much in the way of cash or cheque deposits until I go into a shop setting, which will be at least a year. Which bank would you recommend?

Kilty_2

If you are going to be making a lot of cash and cheque deposits after a year, Lloyds TSB's Business Current Account is probably a good option, 18 months free for startups then you'll start paying the £3 a month plus fees for transactions afterwards but you'll have a decent branch based service which is vital if you are making a lot of deposits, in my opinion.

Their Cardnet system will enable you to take credit/debit card payments and when you move into a shop, you'll be able to take them using a chip & PIN terminal too, the fees depend on your individual circumstances.

I use them for business banking and have found the customer service to be top notch, too.

bylromarha

Any recommendations or opinions on federation of small businesses "free" banking (as part of their £130 fee)?

http://www.fsb.co.uk/data/default.asp?id=2&loc=FSBbenefits

jaype

We have just started a small business selling a product online. As it's downloaded, a US company deals with the credit card transactions (and all the security) then sends us the takings once per month. Our accountant says we'll have to set up a business account but which would be best? If everything could be done online I'd be really happy... We'd only be withdrawing money via online transfer into our regular account when needed, and only a tiny bit of money each month, so the balance would remain relatively high (over 10k, anyway...) Any ideas very welcome!

johnllew

jaype wrote: »

...a business account...If everything could be done online I'd be really happy... We'd only be withdrawing money via online transfer into our regular account when needed, and only a tiny bit of money each month, so the balance would remain relatively high (over 10k, anyway...)

I'd suggest the Alliance & Leicester Business Instant Reserve account to put money in and pay it out, paying 4.69% AER on up to £49,999:

https://www.alliance-leicestercommercialbank.co.uk/content/SB020002.asp

and the Northern Rock Business Reserve for the balance (min £10k - min deposits £1k) with instant access paying 5.32% AER (recent base rate increase not yet reflected in this):

http://www.northernrock.co.uk/html/savings/savings.htm

I use them both and find they are fine.

johnllew

johnllew wrote: »

the Northern Rock Business Reserve for the balance (min £10k - min deposits £1k) with instant access paying 5.32% AER (recent base rate increase not yet reflected in this)

They will pay 5.53% AER from the 9th June 2007.

Note their guarantee:

The interest rate is variable but guaranteed to be no lower than the UK Bank Base Rate until 1 January 2010 . The interest rate will be reviewed and adjusted, if necessary, to comply with the rate guarantee within 30 days of a UK Bank Base Rate change.

Bean_Counter

I've just been on the website for the Forum of Private Business, who represent mainly SMEs.

According to their survey, the top three banks for private business are:

1. Allied Irish Bank
2. Yorkshire Bank
3. Clydesdale Bank

The Yorkshire and the Clydesdale are owned by the same bunch and seem to be in the process on combining computer systems.

I believe a copy of the full report is also available to non-members on the FPB website at:

http://www.fpb.org/page/249

yebaws

Bean_Counter wrote: »

I've just been on the website for the Forum of Private Business, who represent mainly SMEs.

According to their survey, the top three banks for private business are:

1. Allied Irish Bank
2. Yorkshire Bank
3. Clydesdale Bank

I you're lucky enough to have a branch anywhere near you!!! I don't think I've ever seen a Yorkshire or Allied Irish Bank.