Business Banking

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When running a business a good relationship with your bank is important. Banks all seem similar, choose the right type of bank but the services they offer can be very different. Some banks will work extra hard to help you set up a business.

What to look for with Business Banking

The choice many people make is to set up a business account with the same bank which provides their personal banking. This can work to your advantage as having a good track record with the bank may get you better offers, but it is vital to compare at least two other banks before making a final decision.

The kind of information you need to compare is do they have a dedicated small business team, whether its a local branch, what services do they offer, how much those services cost and how the charges are broke down.

What do you want in a Business Account for example, a business which makes alot of transactions will not want to pay for each one. Some accounts provide free direct debits or standing orders. You may need the following accounts:

• A current account for day-to-day transactions, payments and receipts.
• A Business Savings account for any cash sums not needed for day-to-day operations.
• A foreign currency account if you are going to be trading overseas.
• A loan account for any loans you take out.
• A merchant account to enable you to accept and process debit and credit card transactions.

Online Business Banking

All the major banks offer online banking. Online banking is a more efficient way of managing your bank accounts. You can:

• check your balances and view statements online
• move money between accounts
• make payments to suppliers
• set-up regular payments such as salaries
• order cheque books and statements

Opening and Running a business bank account

When you open a Business Accounr there will be information you must provide to the bank in order to open an account:

• Details of the business you are running and your business activities.
• Details of where the finance to start the business has come from. whether form investors or loans.
• A business plan especially if you ar likely to require finance
• A certificate of incorporation for limited companies.

You will also have to provide the following information and documents:

• Banks need this information to check your identity, which they are obliged to do under money laundering laws. A driving licence or passport, and recent utility bill for you and for any other person involved in the management of the business.
• A list of the persons who can sign on the bank account and a sample of their signature. The bank will ask you to specify in what combination people will sign on the account. For example, cheques may require two signatures.