Whether you are acting as a sole trader, a partnership or a limited business the need for a specialised business bank account cannot be underestimated. Many banks have dedicated services to small business operations that ensure communication and advice are in abundance to help the company start up and get going. Like many business decisions, deciding on which small business bank account to open takes careful consideration so ensure you shop around to find the best deal.
Ultimately every company needs a good bank behind them to ensure a solid financial platform for trading. If your small business is a limited company it must have a bank account by law while those operating as sole traders have the option of using their personal account for the purpose. Whichever of these categories your small business falls into it is always advisable to find a bank that has a dedicated small business team that will be able to advice and instruct on the best ways to operate and make a profit. It is also worth investigating whether a bank has a free period once you have signed up when charges will be withheld.
When you are choosing a bank account for your small business there are a variety of considerations that should be made in order for you to find the best partnership that will be good for you, and your business. While you may be happy with a bank that conducts your personal finances it is not always the case that the institution will be able to supply you with great business services. In addition, if you choose a bank purely because you are already using their services you may miss out on discounts and offers that would be open to you as a new customer. Ultimately you need to shop around to make sure you not only receive the best offers but also to ensure that you find the best deal.
When you are comparing banks it is also important to take into account their standing. While small bank may be able to offer you great rates and unbelievable offers, the security of their position is less assured. If you use one of the bigger names you at least have some form of guarantee that your finances are in a safe place as the chances of a large worldwide bank going into liquidation are remote. Take the Northern Rock example where even though the company had financial difficulties the government bailed them out to ensure that customers did not lose their savings.
It is always worth considering the bank charges that may be applicable to your small business operations. It will usually cost money for a bank to look after your finances and hence finding an institution that will do this cheaply is the ideal. However you do not want to be paying so little that the services you receive are substandard. The ideal is to find a balance between costs and services that ensures your company is given the correct amount of financial support, but does not have to pay a large amount for it.
By following this advice you should be able to find a bank that suits the needs of your small business perfectly. Remember that in the coming years it is likely that you will be spending considerable time conversing and liaising with the bank over a number of issues. Therefore having a bank that not only supports you but understands your objectives is important in creating the perfect financial partnership.