Industry experts say that if you’re planning to set up a new business, one of the first things you’ll need to do is to open a business bank account, and while many simply use their personal banking provider, it’s important to compare business bank accounts before simply blindly going forward.
Differences between high street banking retailers can be vast from one branch to another, even if they purport to offer identical services. This means that the wisest course of action is to shop around for the best deals before opening your new business account in order to avoid the hassle of switching providers after the fact, and industry experts have come forward with some top tips in order to select the best option for your new business.
One of the most important things you’ll need to realise, if you haven’t already, is that an incorporated business such as an LLP or a limited company must keep its funds separate from any of its owners’ personal funds. This is optional for partnerships and sole traders, but most financial experts say that it’s highly recommended to keep your personal finances separate from your business ones anyway.
Before you make your decision, experts warn you need to compare a great number of banking providers to find out what types of deals are on offer. Many banks run very attractive deals for start-ups, such as free banking for an introductory period and the inclusion of start-up resources and support services.
If you’re looking for security, you may be considering going with one of the Big Five high street banks, especially if you’ve already got a personal account with the likes of Santander or Lloyds TSB. However, don’t feel compelled to do so, as finding the best provider for your company’s needs may see you choosing a direct competitor or even a smaller banking provider.