Choosing a bank - is this a good enough reason?

Onwards_and_upwards

Last year when we initially looked at starting our business, we went round all the banks. We were very surprised at the difference in attitudes of the business banking advisors allocated to us. One in particular, from Lloyds, was brilliant. Always replied to us straight away, was proactive in contacting us in matters and he spent a lot of time with us.

The others were all pretty shocking, had to chase them up for responses etc. One of them would miss a call from me, then text me the answer to the voicemail I had left - I would then call him for further clarification and he would text me again.

When I look at comparisons of the business banking offers and terms, they all seem quite similar. I would really like to go for the person I am most confident in, but am also aware that he could move on and we get left with someone else.

I'm just wondering what others would do?

Wywth

Onwards_and_upwards wrote: »

Last year when we initially looked at starting our business, we went round all the banks. We were very surprised at the difference in attitudes of the business banking advisors allocated to us. One in particular, from Lloyds, was brilliant. Always replied to us straight away, was proactive in contacting us in matters and he spent a lot of time with us.

The others were all pretty shocking, had to chase them up for responses etc. One of them would miss a call from me, then text me the answer to the voicemail I had left - I would then call him for further clarification and he would text me again.

When I look at comparisons of the business banking offers and terms, they all seem quite similar. I would really like to go for the person I am most confident in, but am also aware that he could move on and we get left with someone else.

I'm just wondering what others would do?

If good customer service is important to you, I suggest you choose the bank that offers you good customer service.
(With us, we only seem to use customer service to open the account ... and then to close it again when they start applying fees)

However, customer service is usually only as good as the customer service advisor, although in large banks this may be restricted to a certain amount by the limitations such advisors are placed under). Be aware that the CSA today may not be there tomorrow.

Savvy_Sue

+ 1. I can see no reason to choose one of the banks offering poor customer service at this stage. You've got better things to do with your time in the early stages of running a business than chase your bank to get the account opened!

The only other advice I'd add to that is to ensure that the bank offers the services you need in a convenient way. For example, when I was running the school PTA, I needed to be able to withdraw and pay in cash. The most convenient place to do that was my local PO, so I went with a bank which allowed me to use the PO for cash transactions. If you never need cash, then having easy access to a counter service isn't important. If you need to pay in or withdraw cash regularly, then easy access to a counter service is vital.

DH and I both work for charities. I'm with an online bank where we post incoming cheques off, and make occasional trips to a nominated bank branch or PO to deal with cash. He's with one which requires regular trips to the branch to pay money in. I know which one I think works best ...

paddyrg

Customer Service is extremely important, these guys are the gatekeepers to your money, and you want to know if there's a problem that they'll make an effort to resolve it.

I'm also with LloydsTSB, and have found their customer support to be pretty decent on the rare occasions I've needed it over the past 7 years for 2 business accounts. In fact, the speed with which they set up the second account was impressive when I needed to open a new (second, limited) company up in a heartbeat for a whole new business - I went into my branch at 4pm on a Friday and left 30 mins later with an account number to give my new client that weekend. That was the value of having an existing relationship and decent service. It's something you won't know when you'll need!

Customer service is a far better differentiator than free pens, and as most banks do free banking for 18 months, you get to try before you buy to a large extent. Then when fees become payable with some banks, you should look to see if they have different tariffs, Lloyds have ones tailored to more physical (cash, cheques) or electronic banking for instance. Don't panic too much over account charges though, we're talking £60/year roughly.

If you're ever going to need an overdraft/loan, you may find it easier to see what accounts your own bank offers, as any back will secure lending for new companies on the directors personal assets anyway, just might make things easier.

martindow

My experience with banks is that they are extemely helpful when they are selling you something, like a loan or opening a new account. If you ever have a problem later they can be a lot less interested.

I agree with others to make sure the account has what you need for paying in money, etc. and go for the bank with cheapest charges.

Onwards_and_upwards

Thank you everyone. Have arranged to meet with the Lloyds advisor.