Small Business Bank Accounts Discussion Area
Comments
-
Hi,
Could you pay wages in cash so reducing your cash in and Bacs out transactions? Also consider paying as many suppliers as you can in cash. We also run a pub and paying in cash is ridiculously expensive.
HSBC do have free banking for a year for existing companies if you can be bothered to switch- it took us several months.
Good luck!
You are replying to a query made in June 2016. I don't think there is much point in answering it now!0 -
Hi, new to forum posting so forgive me if I'm doing it wrong! I was just after some opinions on the new online bank accounts for small businesses like Starling Bank. Does anyone use them? Any thoughts? Ive just done a search on here for Starling and not found anything. Thanks0
-
Hi, new to forum posting so forgive me if I'm doing it wrong! I was just after some opinions on the new online bank accounts for small businesses like Starling Bank. Does anyone use them? Any thoughts? Ive just done a search on here for Starling and not found anything. Thanks
They don't do business accounts for partnerships - yet - so I've not tried them. I do have a personal account with them and can vouch for that.
The business account has some attractive features - which you'll have seen on their site. Some (eg categorised transactions) seem a little gimmicky and may not be useful for many. Others (eg no fee) are obviously very good..
Obvious disadvantages are they have no means of paying in cheques or cash. Yet. Which is a pretty big problem if you ever have cheques or cash. Both the businesses I help run, whilst mostly online, do need to pay in cheques and cash now and then, so without that facility Starling is useless for us at present.0 -
Hi, new to forum posting so forgive me if I'm doing it wrong! I was just after some opinions on the new online bank accounts for small businesses like Starling Bank. Does anyone use them? Any thoughts? Ive just done a search on here for Starling and not found anything. Thanks
Starling has opened its business account to sole traders if that's what you're looking for. But you need a personal account to get it:
https://www.starlingbank.com/blog/sole-trader-bank-account/Obvious disadvantages are they have no means of paying in cheques or cash.
To pay in cash you contact support through the app and to pay in cheques you send them in by post:
https://www.starlingbank.com/faq/Yes, a cheque can be deposited if the cheque is made out in your name and in Sterling GBP. On the back of the cheque, please clearly write your last name and Starling account number.
The cheque can be mailed to Starling Operations Team, PO Box 74352, London, EC2P 2QU.0 -
Would like some advice on the Santander Treasurer Current Account. I am in the process of setting up this account for a residents association, our turnover will be between £1000 and £5000 per year. When I enquired about it at first I was told that the two people operating the bank account (signatories) would have to complete an application and each be credit checked. Then when we applied over the phone we were told that all members of the committee (a further 4 people, 6 in total) would have to submit all their details and then up to 3 would be credit checked at random. The official also mentioned this as being a joint application although there is no credit/overdraft being offered.
My questions are:
Why does the bank want all the committee members to submit full financial info and be potentially credit checked?
Why wouldn't the bank want to ensure the individuals actually operating the account are credit checked? [They will be able to operate the account individually as there is no option for a joint mandate, so as a member I'd like the two account operators (treasurers) to be creditworthy and of good financial standing, but not so bothered about the deputy secretary.
Will the committee members be financially linked as a result of their application for a community bank account? It was implied by what was said but perhaps I have misunderstood.0 -
I don't know for sure, but I'm guessing that all the committee members are held to be liable: before opening a bank account there has to be a minute from a meeting agreeing to do so.My questions are:
Why does the bank want all the committee members to submit full financial info and be potentially credit checked?
The bit I've highlighted would have me looking elsewhere, immediately. I took over as treasurer of a small walking group and discovered that the bank account was sole signatory. It was the first thing I changed! As I said to the committee, I know you can trust me, but you don't, and you shouldn't even if you think you can! It's for my protection as much as the club's: I can't be accused of syphoning off funds because someone else has to authorise any payment.Why wouldn't the bank want to ensure the individuals actually operating the account are credit checked? [They will be able to operate the account individually as there is no option for a joint mandate, so as a member I'd like the two account operators (treasurers) to be creditworthy and of good financial standing, but not so bothered about the deputy secretary.
I then discovered that internet banking with that bank was possible, but only by single mandate. We opened another account for that: we only use the original account for paying cash in now.
And TBH I would care about the good standing of all the committee members.
The way we run the account for the walking group, we have four signatories and any two must sign or be involved in an internet transaction. That way, any two of us can be on holiday or fall under a bus and we can still operate the account.
I agree it sounds as if they might be, but I don't know.Will the committee members be financially linked as a result of their application for a community bank account? It was implied by what was said but perhaps I have misunderstood.Signature removed for peace of mind0 -
Hi we are trading as a Limited Company. We are sub contractors and receive one payment in weekly and make paymens for wages, dividends, pension, tax, vat & accountant out every month. Not sure what bank would be best for us to move to. We are currently with RBS Business Current Account and pay £5 per month charge.0
-
Hi we are trading as a Limited Company. We are sub contractors and receive one payment in weekly and make paymens for wages, dividends, pension, tax, vat & accountant out every month. Not sure what bank would be best for us to move to. We are currently with RBS Business Current Account and pay £5 per month charge.
The bank charge is a legitimate expense which can be offset to reduce your profits and tax. So really it does not cost you anything.0 -
Assuming suziemoon wants to extract the profits to live on, surely by reducing the profits it does have a cost? At best the cost will be offset partially by the tax saved due to the bank charge being tax deductible, so £5x12 = £60 gross cost per year has a net cost of £48.60. But that's still £48.60 less profit than otherwise.jonesMUFCforever wrote: »The bank charge is a legitimate expense which can be offset to reduce your profits and tax. So really it does not cost you anything.koru0 -
Assuming suziemoon wants to extract the profits to live on, surely by reducing the profits it does have a cost? At best the cost will be offset partially by the tax saved due to the bank charge being tax deductible, so £5x12 = £60 gross cost per year has a net cost of £48.60. But that's still £48.60 less profit than otherwise.
Do you work for nothing?
Why should the bank do so?0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards