Small Business Bank Accounts Discussion Area

Savvy_Sue

Without knowing what line of business you're in, and therefore what you NEED from a bank account, it's very difficult for anyone to give you any advice. For starters:

Do you need to withdraw / pay in cash on a regular basis? Do you pay in lots of cheques? Will you need to write lots of cheques? Do you need to access a branch, or will postal / internet banking be enough? If you need to access a branch, which banks have branches you can get to easily?

So, check out the article linked to in the first post on this thread, see what other people have found, and start contacting banks.

And I've merged you into that thread on business bank accounts.

gazfocus

Savvy_Sue wrote: »

Without knowing what line of business you're in, and therefore what you NEED from a bank account, it's very difficult for anyone to give you any advice. For starters:

Do you need to withdraw / pay in cash on a regular basis? Do you pay in lots of cheques? Will you need to write lots of cheques? Do you need to access a branch, or will postal / internet banking be enough? If you need to access a branch, which banks have branches you can get to easily?

Thanks for your reply. It's an Internet based business so Internet banking will be great. I've got a Google Checkout account which is used at present for credit card payments but at present all the money is sitting there waiting for a bank account to transfer it thats not my personal account (or I'll end up just spending it lol).

I would need a debit card (for verifying Google Checkout, etc) and shouldn't need a cheque book. Would need the ability to accept cheques and bank transfers though.

Paulgonnabedebtfree

gazfocus wrote: »

Thanks for your reply. It's an Internet based business so Internet banking will be great. I've got a Google Checkout account which is used at present for credit card payments but at present all the money is sitting there waiting for a bank account to transfer it thats not my personal account (or I'll end up just spending it lol).

I would need a debit card (for verifying Google Checkout, etc) and shouldn't need a cheque book. Would need the ability to accept cheques and bank transfers though.

Regarding the acceptance of bank transfers. Please do look back (on this now merged thread) to some of the posts made during March. Santander/Abbey do not supply the BACS references which can mean that you may have trouble figuring out which customers have paid. N.B. Some other banks are going under the Santander umbrella (e.g. Alliance and Leicester, Bradford and Bingley) so this problem may eventually be reproduced witrh them. So if you are likely to need those references, I suggest you avoid. I currently only have a Santander account for cash and cheques and a Co-op account for receiving bank transfers (both free but the Co-op requires FSB membership in order to supply the free account.

izsushant

Hey Guys,

We have more than 50k in the business bank account and wanted to move it to ensure it's protected. With Santander being a Spanish bank and current situation of Spain, having more than 50k in there isn't ideal (even if its business is outside Spain). So I was checking different free options and the only one which is free is HSBC Business Direct Account. They seem to charge very little for branch transactions but will offer security of HSBC and a different bank account.

Anyone used HSBC for banking? Are they any good? Are their business savings accounts worthwhile?

Paulgonnabedebtfree

izsushant wrote: »

Hey Guys,

We have more than 50k in the business bank account and wanted to move it to ensure it's protected. With Santander being a Spanish bank and current situation of Spain, having more than 50k in there isn't ideal (even if its business is outside Spain). So I was checking different free options and the only one which is free is HSBC Business Direct Account. They seem to charge very little for branch transactions but will offer security of HSBC and a different bank account.

Anyone used HSBC for banking? Are they any good? Are their business savings accounts worthwhile?

I've never used HSBC myself.
Co-op are also free if you open the account via FSB membership (which costs). However, the FSB membership fee also covers the accountancy fees if you become the subject of an IR investigation. Cash and cheque deposits via a nominated sub post office as there are few branches.

GreenfingersXX

Hi,

A cautionary tale for those of you thinking of using Santander as your business bankers.......

Having had a business account with the Abbey for the last 8 years which worked really well I opened a Santander account for my new company last year. Unfortunately it took a lot longer to find clients than I had anticipated (15 months), so the account has only had the company's £100 share capital money in during that time.

Santander sent us a letter last week informing us that they will be closing our account in 30 days as there have been no transactions through it for over a year. Fair enough as they aren't making money out of us (although they are pretending the closure is to prevent fraudulent activity on dormant accounts). However, we got our first major client at the beginning of May and have invoiced them over £7000 this month and now we have no account for the money to go into. I rang Santander and explained this and asked for the account to remain open. They have refused, and are sticking with the "you haven't used it in a year so we are going to close it" line!!!! Shocking, so much for supporting small businesses! :mad:

I'm now left with a business with no bank account, and the embarassing task of telling my client to hold off on payment until I find a new bank, something I told them we did have when we signed the contract.

I'm now more determined than ever to make this business a huge success so that I can do the whole "Pretty Woman" thing and rub Santander's face in my success! For now I think I will just make a complain to FOS....

So there you go, don't rely on Santander to support your business when you need them to. Definitely don't rely on them to listen to you when you ring up and ask a simple question (i.e. please don't close my account as I am about to start putting a lot of money into it)

Anyway, off to join FSB based on all your recommendations so that I can join the Co-op.
GreenfingersXX

Paulgonnabedebtfree

GreenfingersXX wrote: »

Hi,

A cautionary tale for those of you thinking of using Santander as your business bankers.......

Having had a business account with the Abbey for the last 8 years which worked really well I opened a Santander account for my new company last year. Unfortunately it took a lot longer to find clients than I had anticipated (15 months), so the account has only had the company's £100 share capital money in during that time.

Santander sent us a letter last week informing us that they will be closing our account in 30 days as there have been no transactions through it for over a year. Fair enough as they aren't making money out of us (although they are pretending the closure is to prevent fraudulent activity on dormant accounts). However, we got our first major client at the beginning of May and have invoiced them over £7000 this month and now we have no account for the money to go into. I rang Santander and explained this and asked for the account to remain open. They have refused, and are sticking with the "you haven't used it in a year so we are going to close it" line!!!! Shocking, so much for supporting small businesses! :mad:

I'm now left with a business with no bank account, and the embarassing task of telling my client to hold off on payment until I find a new bank, something I told them we did have when we signed the contract.

I'm now more determined than ever to make this business a huge success so that I can do the whole "Pretty Woman" thing and rub Santander's face in my success! For now I think I will just make a complain to FOS....

So there you go, don't rely on Santander to support your business when you need them to. Definitely don't rely on them to listen to you when you ring up and ask a simple question (i.e. please don't close my account as I am about to start putting a lot of money into it)

Anyway, off to join FSB based on all your recommendations so that I can join the Co-op.
GreenfingersXX

Co-op aren't perfect but at least they let you know the references that show which customers have made BACS transfers. Santander expect their business customers to be psychic.

midsummer100

I am reading this thread as I now have a second business and need a second business account.

I was thinking of either Nat West or Bank of Scotland so was doing some research. We want to spread our risk ideally - hence looking elsewhere from HSBC.

I am amazed that no one has recommened HSBC. Having had dreadful problems with the awful Lloyds TSB, we went to HSBC and have had, touch wood, no problems at all. They are helpful, stay open until 6pm, I can see a business banker on a Saturday and, most importantly of all, they do faster payments so when I pay people, if their bank accepts faster payments, they get it usually instantly and within 2 hrs if not. The statements are easy to understand and everyone is very helpful.

I recommened my sister to HSBC and they put £50 in my account for recommending her.

I may now abandon my plans to go elsewhere and stay with HSBC.

jet77

Hi,

I need to open a new bus account. I have missed a credit card payment and gone over overdraft limit in the last 4 months. I need the account to receive Paypal transactions (think most banks do this), possible also by card and then also some cash. Please could you guys give me your recommendations?

Thanks,
J

midsummer - I will def look at HSBC

tompritchard

zierisaver wrote: »

Whatever you do don't go with Barclays. They send you this calculator thing that you need to use to get online, then about 10 different passwords (ok, exaggeration, but lots), then charge for anything and everything. I've heard HSBC are much better, and they seem to still be making good money, so you know your money is safe.

I've also heard good things about the co-op as a member of the FSB

I'm with Barclays for personal and business use and in all honesty I think they are quite good (once you get out of the local branches that is). The online system works well in my view and when I made some unusual bookings a few weeks ago (a wetsuit purchase, flights to Barcelona and 8 travelodge rooms for a large group getaway) I received a call from barclays concerned about fraud on my card: it wasn't, but I like the fact they are that quick.

Probably says something about how much I use the card though too!!:T