Leading business bank account deals are offered
by all of the major banks in the UK. Unlike
personal bank accounts, business accounts normally
have fees involved for the day-to-day banking
activities typically involved in running a business,
so it is worthwhile shopping around for the
best deal on your new business bank account
as there are plenty of great offers out there.
banks offer 12 months free banking, giving you
a great incentive to set up your business banking
with them, and whilst this is a great offer
you should still check all the interest rates
and charges your business will receive after
the free period ends because it often becomes
difficult and time-consuming to change over
business banking facilities to another bank
once you have everything set up with your suppliers.
This is where the banks can then start to make
their money from you. The 12 month fee-free
period is also quite clever as the first 12
months of trading for new businesses often involves
a much lower amount of transactions anyway whilst
you are still establishing your business and
customer base. Don't be afraid to call around
the banks discussing what you have been offered
in an attempt to see if they will match or beat
the other banks offers for your new business.
Bank Account Compare - The typical charges for
Once your business does begin to incur charges
on its account for daily banking activities,
there are a variety of charges that may apply.
The most common banking charges are: transaction
charges from using your business charge card
or business debit card - these can range from
a few pennies to 20p upwards per transaction
depending on your type of business bank account.
Top tip - if you don't use
your card much, try to set up an online access
business bank account, many of these do not
charge for using your business debit card for
standard transactions. Monthly fees are very
standard and often depend on your size of business
or turnover. Typically expect to pay anywhere
from £5.00 to £15.00 per month if
you are a new business still in the first few
years of growth. Arrangment fees - these are
normally charged when you are accepted for a
business overdraft or business credit card.
Arrangement fees can vary widely depending on
the size of the facility you are putting in
place, often 0.5% if not a set fee for a given
amount. Bear in mind however that the bank can
call in their facilities at any time if you
become a high risk to them, so always make sure
you can service your business debt before signing
on the dotted line.
Business Bank Account Facilities
You don't just want good account fees for your
business bank account, you should also compare
the best facilities and support for your business.
Many business bank accounts come with local
dedicated account managers rather than call
centre staff, this gives you a much more personal
service and also allows your account manager
to get to know you and your business, rather
than you just being another bank account number
in the system to a random member of call centre
staff who does not know or understand your business.
This can often help your business grow if you
ever require more support - a dedicated account
manager will understand your requirements better.
As more and more business go online it is also
important that the bank you choose offers a
very good online business banking portal - one
that allows you to make payments online (faster
payments is now the standard, ask for this),
set up and cancel direct debits/standing orders,
check and transfer balances between current
accounts and business savings accounts, plus
checking the next working days forecasted income
- all of these are very important and useful
tools to your business so make sure your bank
offers them. Online security is also paramount
in the current economic climate - make sure
their internet banking is extremely secure and
ask what measures the bank has put in place
to make sure your details are secure and safe
from hackers and phishers.
Business Bank Account Credit Facilities
Some banks some with an automatic approval for
a business credit card to help get you started.
Very often the credit limit to begin with is
very low - circa £1000, however it is
better than nothing to get you started in business.
Top tip - ensure that you know
whether your account is set up to pay off the
full amount or the minimum amount at the end
of each month. Set it up to whatever best suits
you, and that way you avoid any nasty surprises.
Business credit cards are often a cheaper method
of credit than arranging an overdraft or business
loan. Compare your business bank account facilities
to see what works best - you may find that after
adding up all the arrangement fees and other
fees associated with loans and overdrafts that
it actually works out cheaper just to have a
business credt card, if that gives you enough
credit to cope with your requirements. Remember
- it's not just the APR you need to consider,
add in all the other fees too first to give
you a real comparison of the actual cost of