Small Business Bank Accounts Discussion Area

thenudeone

Any suggestions for a bank account to replace one with Lloyds TSB who I have found to be dire on customer service (They made error on name of signatory when opening account and now won't accept any instructions!)

It is for a non-charitable Club set up as Company Limited by Guarantee. Turnover and balance both under £5k pa. Very small number of transactions. Ideally one that I could pay in cash at a Post Office.

Currently free with Lloyds but still want to move!

Savvy_Sue

try Unity Trust. and have you exhausted Lloyds complaints procedures? if so, ombudsman ...

shadia253

Hi All,

I wonder if you can help - I have decided to start up a small business providing Wedding Favour boxes. I am due to take part in my 1st wedding fayre in the new year, but it has occurred to me that I don't have a business account set up yet. As there have been relatively low start up costs, I have paid for all of this out of my personal accounts.
Obviously any money I make going forward I want to see the ins & outs in a separate account so keeping track will be easier.

Im going to be an online business and showcase at wedding fayre's to build up clients and willl be operating on my own, this is more of a part time business for me as I work full time, I just wanted to do something to help supplement my current income as times are tough!!

I currently bank with HSBC & have seen their business direct account, I was just wondering what people's thoughts on this was as its not going to be a huge money spinning business, but they do give 2 years free banking and it remains free if you fall under certain thresholds. Would it be of benefit to open a business account for the 2 years to see how my start up works?

Any help would be much appreciated.

Savvy_Sue

if it's free and the account does what you need* in a way which suits you*, why not? longer term there can be disadvantages to having both biz & personal accounts in the same place, but on a small scale unlikely to be a problem.

* if you need to pay in and withdraw cash, you need easy access to a branch. if the a/c is only free for a limited no of payments in / cheques out, you need to be sure you'll be below those limits. if you need internet / phone banking, do they have it? and so on.

hammyali

Dear All,

I have just started a small asbestos consultancy in Norfolk, and by what people are telling me I will have to open a business bank account. I believe (if I have been told correctly) that it is not a legal obligation to have one, but banks pressurise you into doing so as I would guess it makes them money.

Can anyone give me some advice on who to do with? I would rather support a local bank as opposed to a national one, as (perhaps naively) i think they may be more honest.

Any advice would be hugely useful.

Thanks
Hamish

Premier_2

https://forums.moneysavingexpert.com/discussion/2103019

Start with the MSE article linked to in the OP of that thread


If you want to stick with local banks etc, then you'll need to ask in those local banks.

Norwich & Peterborough offer business accounts, although they are not exactly small, and may not remain too local if Yorkshire take them over.

The advantage of using a nationwide bank is that they have branches nationwide ... and you never know where you may be, particularly on business, when you might just need one.

Annisele

So far as I know you're right, and there's no legal obligation for a business to have a bank account.

However, the terms and conditions of personal bank accounts almost always say that you can't use them for business purposes. If you did, you wouldn't be breaking the law but you would be breaching your contract with the bank.

The effect is that for any decent size of business you'll have to open a business bank account (unless you deal in cash alone, keep all your money under the mattress, and deliver your income tax payments to HMRC in suitcases )

I can't give any advice about local banks I'm afraid, as I don't know Norfolk. However, I'd second Premier's point that nationwide banks can have advantages.

paulwf

The best account depends on what you need from it...I use a wide range of bank services not just a current account but everyones needs is different. Given the papertrail and certification normally surrounding the asbestos industry I'd have thought having a separate business account and getting clients to pay by BACS would be reassuring for them. What sort of guarantees do you need to give your clients, perhaps setting up as a Ltd (which has to have its own bank account) is worth thinking about?

docmatt

Hi hammyali, just wondering, will you have any facilities to test samples of Insulation/AIB to see if it contains asbestos and which sort?

If so i'd be intersted in a quote

Oh, re bank account, we use Lloyds they will give you 18 months free banking with lots of incentives and extras for business owners. You don't want to be signing a stingy little cheque saying Mr and Mrs hammyali you want a professional buisiness cheque saying "HammyAli Asbestos Enterprises Ltd, Director account"

Savvy_Sue

hammyali wrote: »

Dear All,

I have just started a small asbestos consultancy in Norfolk, and by what people are telling me I will have to open a business bank account. I believe (if I have been told correctly) that it is not a legal obligation to have one, but banks pressurise you into doing so as I would guess it makes them money.

Can anyone give me some advice on who to do with? I would rather support a local bank as opposed to a national one, as (perhaps naively) i think they may be more honest.

Any advice would be hugely useful.

Thanks
Hamish

merged with the discussion thread, look at the article in the first post, then skim through from the end to see what people suggest now ...