Do I need a business bank account?

Cosmicg_2

I don't use cash or cheques, so something I miss from the MSE overviews are statements about BACS transfers and standing orders. 
Are they free or not.  

Zanderman

Cosmicg_2 said:

I don't use cash or cheques, so something I miss from the MSE overviews are statements about BACS transfers and standing orders. 
Are they free or not.  

Not sure of the context of your question. This thread is about business accounts - for which fees vary according to which bank they're with. SOs are usually free. BACS transfers may incur charges - but do you mean BACS or do you mean Faster Payments? And for which bank? 

Kinkajou

Hello! I am about to offer for sale digital products to general public worldwide. Just setting up Etsy and shopify stores now. Don’t have any guarantee of whether this will be successful or not. I’m currently not employed anywhere else.  As I’m just starting, I’m thinking to stay as a sole trader for the present time. I have not opened a business bank account. Should I open a business bank account before I even start or am I worrying unduly? In addition, is it challenging to open a business bank account if you’re currently unemployed? Hopefully on the cusp of being gainfully self employed! 🤞

eskbanker

Kinkajou said:

Hello! I am about to offer for sale digital products to general public worldwide. Just setting up Etsy and shopify stores now. Don’t have any guarantee of whether this will be successful or not. I’m currently not employed anywhere else.  As I’m just starting, I’m thinking to stay as a sole trader for the present time. I have not opened a business bank account. Should I open a business bank account before I even start or am I worrying unduly? In addition, is it challenging to open a business bank account if you’re currently unemployed? Hopefully on the cusp of being gainfully self employed! 🤞

Yes, you should open a business bank account for use from day one, it wouldn't take many sales being processed through your existing personal current account for them to spot what's going on, and, even though they won't necessarily close it swiftly, why take the risk?

Kinkajou

eskbanker said:

Kinkajou said:

Hello! I am about to offer for sale digital products to general public worldwide. Just setting up Etsy and shopify stores now. Don’t have any guarantee of whether this will be successful or not. I’m currently not employed anywhere else.  As I’m just starting, I’m thinking to stay as a sole trader for the present time. I have not opened a business bank account. Should I open a business bank account before I even start or am I worrying unduly? In addition, is it challenging to open a business bank account if you’re currently unemployed? Hopefully on the cusp of being gainfully self employed! 🤞

Yes, you should open a business bank account for use from day one, it wouldn't take many sales being processed through your existing personal current account for them to spot what's going on, and, even though they won't necessarily close it swiftly, why take the risk?

Thanks so much eskbanker!  I appreciate your help! Thought I'd give you an update, I applied with Starling Bank and they rejected me after one hour consideration.  They gave no reason for the rejection, I am in no debt, showed savings and evidence of my work. I would like to apply somewhere else, but I don't think another rejection so close to this one would look great.  I'm launching end of the month, I'll keep my regular current account for now. Im rather annoyed I gave all my details to these people and perhaps it's for the best. I only looked at them because they were featured on MSE, but the lack of telephone support is a negative.

Johnnyplymouth

I have a club accountas I run a small martial arts club. Mt account is with Lloyds, but they have changed the account and now I have to pay a monthly fee, of which I'm not happy. I only do on line banking, recieve the monthly fees of my students and pay the bills I have (renting of a venue).
Are there other banks not charging a fee? 

Zanderman

Johnnyplymouth said:

I have a club accountas I run a small martial arts club. Mt account is with Lloyds, but they have changed the account and now I have to pay a monthly fee, of which I'm not happy. I only do on line banking, recieve the monthly fees of my students and pay the bills I have (renting of a venue).
Are there other banks not charging a fee? 

This thread is about business accounts, but you're talking, I assume, about a community account of some sort, which isn't the same thing. There are a few threads on here about those, and there's info also at https://www.moneysavingexpert.com/news/2024/10/lloyds-bank-scotland-treasurers-account-fee/

Threads worth looking at include:
https://forums.moneysavingexpert.com/discussion/6537044/bank-account-for-community-group
and 
https://forums.moneysavingexpert.com/discussion/6585897/small-group-bank-account

There are probably others!

Also look at Virgin's options at https://uk.virginmoney.com/business/charities-clubs-and-societies/