It goes without saying that you need the best bank for your business needs. Your business makes money, you need someone to house and manage that money, and you need a bank. There are many banks out there that offer varying services. How are you supposed to know which one to go to? This article will give you some tips on how to ensure you don’t wind up with a bank that hasn’t got your best business interests at heart.
Personal vs. Business It’s hard enough when shopping around for a personal bank account, let alone a business one. When you’re looking around for a business bank account, you will be faced with an array of products that can become indecipherable. For any newbie to the business world, this may all be a little too much. Just make sure that if you are an intrepid entrepreneur that you don’t become disheartened and run back to your monthly pay cheese. Do your research, talk to the banks and you will be fine.
The main difference is that a business account will usually impose charges for the majority of transactions. Don’t be fooled by the offers of free extras such as legal and marketing advice, or some accounting software at a greatly reduced price, make sure the bank can provide the most suitable service for your business.
Don’t Just Play it Safe this is important. A lot of people may be tempted to just stay with a bank they have come to know – their personal bank, for instance. This isn’t advisable. They may not actually be best for your business. It can be time consuming when joining a new bank, due to the many different ID checks one has to go through, but may be well worth the trouble down the line. If you shop around you are almost certain to find a better deal. When shopping around, make sure any bank you consider does the basics well: Holding excess money Controlled payroll Processing of regular payments Savings products Dept. options Overdrafts and loans Then afterwards check for the extras that may be specific to you, such as their facilities for managing any foreign currencies, which might allow for expansion overseas. Banks understand that all businesses are different and will want different things and you should be able to tailor a service specifically for your needs.
Financing Banks are a fussy bunch, however. The Federation of Small Business found that 41% of SMEs (small, medium enterprises) were point blankly refused finance in 2012 (in the second quarter) by the leading British banks. This is bad news for businesses in need of financing so in December last year, as the BBC reported, Government member Vince Cable gave a further £55 million towards SME financing.
Don’t panic Never panic. From his book the $100 Startup Chris Guillebeau states, “Many aspiring business owners make two common, related mistakes: thinking too much about where to get money to start their project and thinking too little about where the business income will come from.” You can click here for all the banking phone numbers you will require. Do your research and find the best deal possible for your business. Image Courtesy of Idea go Free Digital Photos.net