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Business Bank Account: How to Choose
a Business Bank That is Right For You and Your Business
Your success in getting a Bank to support a request for
finance you may need does depend upon you choosing the right
Bank in the first place. Even if you don't initially intend to
borrow any money, you should keep this possibility in mind when
you are researching the market for the right Bank.
With competition increasing you can get some good deals if
you are prepared to shop around. Also, don't pass over the Banks
which offer only telephone or Internet Banking for small
businesses. If you operate a very small and simple business then
an Internet only Bank account may be right for you.
So where should you look and what criteria should you use
when searching for a Bank for your small business?
Your Existing Bank
If
the Bank where you have your personal account offers business
banking facilities then this may be a good place to start. You
already know their level of service (good or bad!), the layout
of the branch and perhaps some of the staff if you are lucky!
This can make the whole process of opening a new account much
easier.
But don't open your business account at the same Bank just
because it will be less hassle. You must still ensure that the
services which go with the business account are what you are
looking for and at the right cost.
A New Bank
Even if you have a good relationship with the Bank that has
your personal account, don't discount the opportunity of looking
around. One reason to consider opening your business account at
a different Bank is that of total separation between the two
aspects of your life - your business and personal life.
Consider whether you want one institution to have complete
control of your business and personal finances. If you do go
through a sticky patch in the business, would you feel
comfortable with the Bank seeing what you have sitting on your
savings account?
Location
If you have no preference for a particular Bank then location
of your Branch may be more of a priority, especially if you will
be paying in a lot of cash where a bank just around the corner
would be very useful.
Some businesses have very simple needs when it comes to
banking. If you don't handle cash or large volumes of cheques
and are happy banking over the telephone or Internet then
location is obviously less of an issue! But be mindful that the
lack of a 'real person' to talk to could be a frustration when
you have a major problem to sort out.
Go Hunting
If you have no particular Bank in mind, or you are only
interested in getting the very best deal, visit as many as you
can so you can make an informed choice. Ask to speak to the
Manager and tell them you are interested in opening a Business
account and that you are looking for information.
The good ones will spend time with you, offer you brochures,
talk you through the process and the leaflets and tell you about
their range of services. How you are treated at this early stage
will give you a good idea of how you are likely to be treated
later on.
Now is the chance for you to get to know about what services and
benefits they can offer your business. Ask questions such as,
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Do they offer on-line banking or telephone banking?
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Will you have a named point of contact? Or will you be put
through to the dreaded Call Centre?
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At what point will you be able to apply for borrowing
facilities and what are the standard terms?
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Do they provide help and support?
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What are the charges to operate the account?
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If you decide to open an account with them, what information
such as ID or application forms will they need from you to open
the account?
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Do they offer an opening incentive such as 12 to 18 months
free banking?
Could You Do Business With Them?
Once you have done all your research take some time to assess
all the information you have gathered. Which Bank offered you
the best deal? Which Bank is the most convenient? Which Bank
offered the services or products most suitable to your
circumstances?
I have not mentioned probably the most important aspect for
many business people - the person who is going to be looking
after you; your point of contact to sort out the things that
will go wrong! Ask yourself whether you could get along with him
or her. A good relationship with your Banker is vitally
important.
And
Your Decision Is?
So, based on all your findings, which Bank stands out head and
shoulders above the rest? Which one did you feel most
comfortable with? Make an informed decision based on all the
information you have gathered and then move on to the next stage
which is actually opening your account.
Robert Warlow
Business Loan Service
http://www.businessloanservices.co.uk
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