Start as you mean to go on with business banking

If you’ve just started your own business, congratulations! Months of planning and hard work have led you to this point; but there’s one thing left to think about. Business banking is a great option, whether you’re a sole trader, small company or larger corporation, and there are loads of great deals out there with various high street and online banks. If you are a startup considering your banking options or a well-established company thinking about changing the way you bank, then take a few minutes to read our handy guide to business banking, to see if it could be right for you.

Why choose business banking?

Many high street banks offer free business banking for a period of time, which is a great option if you’re a newly formed company or a sole trader. Business banking is the perfect way to keep your business cash flow separate from personal funds, and when it comes to doing your tax return, your accountant will thank you for operating a separate business bank account! Business banking can also offer a range of other benefits including:
• Dedicated business banking relationship manager for any queries or problems.
• Overdraft and loan facilities, which could be useful for startups or any business needing a cash injection.
• Invoice discounting – this allows you to borrow money against the value of unpaid invoices.
• Commercial mortgages – if you need to purchase business premises, this can be handy.
There are a number of other benefits too. It really depends on what you’re looking for from your business bank account.

Things to consider

When shopping around for the best business banking deals, there are a number of things that you should take into consideration:
• Is the service free or is there a monthly charge? Many banks will offer a set period for free, after which there is a monthly or anual fee.
• How many transactions are included? Some banks will only allow so many withdrawals or transfers before fees become payable.
• What is the interest rate? This is particularly important if you’re going to be keeping large sums in your business bank account.
• Are extras such as commercial mortgages, overdrafts, business credit cards and merchant services available in future, should you need them?
This should help you to decide on the best bank for your needs – it’s a good idea to use a comparison site for an initial look at interest rates and account fees, then choose 2-3 possibilities and head directly to the bank’s website, to check out what’s on offer in more detail. Of course, if you decide you want to make an appointment to discuss your business banking choices in more detail, you can do, and this is a great option if you’re feeling at all uncertain which account is best for your company’s needs.
Here are our top 3 banks for business accounts:
• Lloyds bank - offers reliable banking with free text message alert service for each update of the account. You can easily manage and control your account with the online banking service or with their mobile banking app.
• HSBC bank - named to be the best bank for 2019, they offer attractive international payments from only £4. Two types of tariffs are aplyable according to your needs - electronic banking tariff and small business banking tariff.
• Barclays - there are few types of accounts for business to choose from depending on the turnover of you business and do your everyday banking and manage your account online or using their app.