Bank Account for New Business - stay with current bank or branch out

retroham

Hello,

I intend to open a new business bank account for a limited company. Is it best to stay with the bank which holds my personal account as they know that I am credit worthy as have had loans before and always paid them back without missing payments. I’ve seen another bank which offers better terms for new business accounts, but wonder if it is easier to get a loan from a bank which already knows my financial history.  Any advice greatly appreciated

CliveOfIndia

Is it just a bank account you need, or a loan?  For a bank account, just go with whoever offers the best deal.  Business accounts usually charge fees - both a monthly fee for running the account, plus fees such as depositing cash, cheques, etc.  Many banks will offer a fee-free introductory period, but check what the ongoing fees are.  For instance, if you rarely need to deposit cheques, it may be better to go with one that charges a higher fee for cheque deposits but a lower monthly fee.

In terms of a loan, that's a different thing altogether, you really need to shop around for a business loan - the criteria for which are usually different than for a personal loan.