Bank account for sole trader

Thenotsowyzewun

Hi,

I'm setting up my own business, as a sole-trader - I'm going to see how I fare making money on eBay!
I'm going to use a separate bank account to make things easier, are there any particular banks anyone would recommend for this or should I just go with whoever I would if it were a Personal Account?

Thanks very much

P.S: I'm not registered self-employed yet, not sure if I need to be before I can apply :S.

EDIT: Just found this on the Small Business boards; charges?! Didn't know I'd have to worry about getting charged for stuff Personal Accounts get for free...
Still it's late, maybe I'm not reading it properly (are these accounts for sole traders or limited companies :S).

EDIT: There's a section about this on BusinessLink, and they recommend this. It's quite good .

M_Thomson

You will find in the terms and conditions of nearly all banks personal current accounts that you are not allowed to use them if you have a high volumne of transactions. You will have to open a business account.

loulou58

Banks are very wary of opening business accounts for Businesses involving Ebay and the like. The high risk and fraud rate is way above that of a normal business, i'd visit a few banks and see what their policies are, you'll probably find few who wish to open one for it. The other problem being banks do charge Business customers to bank, the first few months (dependant on institution) are usually free/reduced rates so you'll have to incorporate this is to the extensive business plan you'll be needing.

Thenotsowyzewun

loulou58 wrote:

Banks are very wary of opening business accounts for Businesses involving Ebay and the like. The high risk and fraud rate is way above that of a normal business, i'd visit a few banks and see what their policies are, you'll probably find few who wish to open one for it. The other problem being banks do charge Business customers to bank, the first few months (dependant on institution) are usually free/reduced rates so you'll have to incorporate this is to the extensive business plan you'll be needing.

Thanks, hadn't realized they might turn me down on the basis of what business I'm in (since there presumably isn't a credit check unless I'm borrowing money) and the same comment about fraud and risk.
Also there's a few free banks mentioned on the thread in the SMB forums, I'll just have to check if they're for LTD co's or Sole Traders.

Thanks for your comments everyone .

P.S: And don't worry, my business plan is gonna be extensive! I'm abit too meticulous at times...

loulou58

Thenotsowyzewun wrote:

Thanks, hadn't realized they might turn me down on the basis of what business I'm in ..

Guaranteed it'll be the first question you'll be asked! I wish you good luck with your venture!

conradmum

I've just opened an Abbey business account as a sole trader. Most things are free and it was easy to open. I'm not running an eBay business though.

Thenotsowyzewun

loulou58 wrote:

Guaranteed it'll be the first question you'll be asked! I wish you good luck with your venture!

Do I notice a hint of sarcasm in your voice :P.

Good, just gives me more drive .

loulou58

Thenotsowyzewun wrote:

Do I notice a hint of sarcasm in your voice :P.

Good, just gives me more drive .

Aww no it wasnt sarcastic , i was being nice :beer:

Kilty_2

I just opened a personal account with Bank of Scotland to use as a sole trader, but I've no choice in the matter as I'm under 18 so ineligible for a business account.

They weren't too bothered though, and I did tell them what I wanted it for (it's my 2nd account with them). Although my work is on a freelance basis so there is not going to be vast amounts of regular transactions (far more incoming than outgoing but not a lot of either I guess, not sure if I will be able to find work or not)

Thenotsowyzewun

Update: Applied for the Abbey account, went through no problems, they didn't care what line of business I was in, and didn't even ask for proper proof of ID (I just sent them a copy of a mobile bill!).
They're not as slow as everyone says they are either, took about a fortnight.