'Business' bank account

ilikedrawing

Hi all,

I'm starting a small business, sole-trader/freelancer, and I've been advised to keep these finances seperate from my personal money. This is fine as it will help me with my account keeping.

I don't know much about the banking and finance world so help would be great!

I'm stuck with what account to open, does it have to be a special 'business' account? My income won't be consistent, plus my credit rating isn't the best due to bouts of unemployment.

Plus, I'm sure my Halifax current account has a minimum pay-in? What happens when my income goes in to this new account instead of Halifax?

Mr_Poves

If your credit is less than perfect I would suggest cashplus ,
it's basically a pre - paid mastercard ,
but you can access the account online ,
set up direct debits and pay suppliers etc .
You get a card with your business name on it so it looks quite professional .
You can pay in at any post office , and pay out to your bank account .
The only downside is you can't pay in cheques ,
although customers can send money to you.
There is an annual charge , I've used them for 2 year's ,
getting ready to move to a high street bank now .

Aquamania

ilikedrawing wrote: »

Hi all,

I'm starting a small business, sole-trader/freelancer, and I've been advised to keep these finances seperate from my personal money. This is fine as it will help me with my account keeping.

I don't know much about the banking and finance world so help would be great!

I'm stuck with what account to open, does it have to be a special 'business' account? My income won't be consistent, plus my credit rating isn't the best due to bouts of unemployment.

Plus, I'm sure my Halifax current account has a minimum pay-in? What happens when my income goes in to this new account instead of Halifax?

Most personal accoumts prohibit their use for business purposes - check out the terms of yours.

There's a discussion thread about business accounts here
https://forums.moneysavingexpert.com/discussion/2103019

If you have difficulty opening an account elsewhere, then start with your existing bank who appear happy to provide you a banking service.

In regards to your existing account that requires a minimum monthly payment in, it would help if you stated exactly which account you have, but if for example it is the Halifax Reward Current Account and you fail to pay in at least £750 in any month, then you will not get the £5 reward for that month.

Most people with multiple accounts 'cycle' their money around them if needed to ensure the minimum monthly payment in is met, but that is not always possible if the accounts are all with the same bank - check the terms of your account as to any restrictions on where the money paid in can come from to meet the minimum requirements.

Alternatively, the Halifax current account I don't think has any minimum monthly payment in requirements - check with them direct if interested.