Whatever the size of your business, finding the right business bank account is crucial. Many banks will try to tempt you in with attractive offers and introductory discounts, but you need to be thinking long-term. What benefits can your bank offer your business, and how can it help you to grow? Here are the main features you should be looking for when scouring the market for a new business bank account.
A speedy switch
The switching process is now a lot quicker and easier than it used to be, but business bank accounts can still be a headache to open. Unless the account offers such good benefits that it’s worth the wait, you should prioritise banks that receive good feedback for the speed of the switch. For example, Federation of Small Businesses banking packages promise a quick and easy switch, especially to help SMEs and start-ups hit the ground running.
No or low charges
Before opening an account, you need to be aware of every single charge and fee you may be subject to. This helps you to compare the market and work out if a particular account is affordable for you. Ideally, you’d find an account with no charges. Many business bank accounts offer an 18-month charge-free period, which is ideal for brand new enterprises.
Overdraft facility
You may not ever need to use it, but an affordable overdraft facility can be a huge help if you ever find yourself in a tight corner with regards to cash flow. If the account doesn’t come with an overdraft facility at the start, talk to the bank to see if it will be an option later on.
Savings
Sensible businesses put money aside for annual expenses such as tax, but there’s no reason that these savings shouldn’t be earning you some interest. You may end up having more than one account, one for day-to-day transactions and another for savings.
Accountancy
Many businesses find that it’s much easier to choose a banking system that feeds information directly through to their accountant. This means that the accountant can offer real-time, proactive advice based on the very latest figures, warning of anything you need to be worried about and suggesting improvements to the way you conduct transactions. It also means you don’t have to drag a huge mountain of jumbled paperwork to your accountant when tax deadline day looms.
Simplicity
You don’t want to spend all of your time sifting through paperwork to understand what’s going on with your business finances, nor do you want to get frustrated at a confusing online system. Choose an account that uses straightforward, user-friendly banking systems that save you time and make life easier.
Easy, flexible access
How would you prefer to access your business bank account – by phone, online or in person? Whether you like to check your balance on a smartphone app or make transactions over the phone, look for an account that lets you bank the way that suits you.
