What You Should EXPLORE before Starting a Business Account

Good news!

You’re starting a business account probably all by yourself or with your Angel investors.

And this means you are about to experience a better cash flow, more detailed tracking of the income and expenditure and better financial management for your brand in an overall way.

Terrific!

But, a business account isn’t like a personal savings account. Not offending the personal savings accounts, most of them are simple to create and both accessible and affordable to maintain.

A business account is an account is an account that is solely made for business purposes. Therefore, it is necessarily going to be complicated, and yes, you need to pay special attention to it.

And although it is a favourable offer to say that you can still use the personal savings account as the main account for the business, the chances are that won’t do you any generic good.

You get the idea, right?

And if that doesn’t sound goods to you, then you can read what Statista has revealed for us:

“It can be seen that two percent of SMEs used a personal current account as the main business bank account at that time. The majority (95 percent) of small and medium enterprises in the United Kingdom (UK) stated that they used a current account in the name of the business as of 2019.”

Business accounts come with their own benefits that personal savings accounts might not deliver.

However, before you start such a ‘commercial’ account, you must do some research and investigations, right?

Jodie is a bank teller at one of the leading banks in the UK. Read what she has to say:

“You’re basically running a business account in particular because you have a brand. Now a brand comes with special factors and…um…challenges (chuckles)…but that’s where the business account matters. However, people might miss out the super diverse features today’s banks are offering for a business account. So before you start one, you should compare and take time to find the right account for you.”

What Should You Explore before Starting a Business Account?

Well, ‘explore’ is just a mere word to make this sub-title sound good. You need to check a few factors before creating a new business account.

And don’t even make any financial decisions like insuring your brand or taking out an affordable and easy loan in Ireland for business.

It is because your financial decisions will be connected and, therefore, be influenced by your business account.

So, let us first go through the following points and make a decision:

• What Are the Charges for the Account?
• Are There Any Additional Options?
• Is the Account Matching Your Preferences?
• Is Your Money Secured?
• Offers?

Well, these are just a bunch of essential things you need to check. If you have further questions, do go ahead and clarify them with your bank teller or manager.

For now, let us read about these points:

What Are the Charges for the Account?

It is true that you need a minimum deposit as the least balance to keep the fund working. The amount varies with different banks. In general, this amount might be higher than a personal savings account.

You need to provide a maintenance fee for the accounts at all costs.

Some banks out there might ask you to meet a particular amount each month as your account is done for business purposes. You get the idea. The banks are also into a business, isn’t it?

When you are withdrawing an amount from other institutions, such as an ATM, you need to pay charges to your bank.  

Extra fees or charges are applied if you close off an account or overuse an amount such as exceeding the number of transactions per month.

Are there any Additional Options?

 Well, you need to check how ‘mobile’ your account can be.

A business account deals with quick transactions like an easy loan in Ireland delivered within a few hours to the account.

And such quick transactions will happen with mobile banking facilities and banking account credit cards.

Check if your bank can offer you a mobile app to make and receive payments.

Find out if the institution allows you to open a business credit card with the availability of a new business credit line.

You need them.

Is the Business Account Matching Your Preferences?

In this regard, you need to find out if your bank account is making your purposes be fulfilled in a cost-effective way.

For example, you have got to make many bank transfers within a month or you are not sure about the rate of such transactions.

Then go for those accounts that offer you a business checking account coming with high transaction limits.    

Or you can choose an account with low maintenance fees.

But, you need to make compromises for that. You may get such attractive offers from banks that only have one central unit and no other branches.

Is Your Money Secured in Business Account?

Each and every bank in the UK (even the online banks) is insured of the accounts they have for their clients by a governing authority.

Although it is merely a formality, but it becomes your liability to ask your bank about insurances and money safety matters.

In a nutshell, just check whether or not your bank is insured before starting a business account.

Offers?

Many banks are new or are successful.

They do offer attractive offers as part of their business plans.

If you research extensively, you may get such offers from your bank.

If you didn’t research or compare different banks and their services, you can still go ahead and ask them if they are offering discounts or rewards with a new business account.

You may get offers like bonus money for starting a new account or low maintenance fees for an account etc.

But you do need to ASK.

To Conclude

Business can be great when you manage an account for it with particular attention.

A business account can offer you particular traits for recovering unique problems similar to a business or a personal loan in Ireland for bad credit, a business account can offer you special traits for recovering special problems.  

Just be sure to find the right bank for it.