Choosing a business bank account can be a difficult process. For this reason, many people simply set up a business account with the same bank that they do their personal banking with. While this approach undoubtedly has its advantages in terms of convenience and familiarity, you may find that you can get a much better deal with another bank. Things to bear in mind when choosing a business bank account include the borrowing and transaction costs, the type of relationship offered by the bank, and the facilities that they offer.
If you are a sole trader, you can simply use your personal bank account, but it will look more professional, and make your business finances easier to manage, if you set up a separate business account. If you are setting up any other kind of company, such as a partnership or a limited company, then you will have to set up a separate account.
It can certainly pay to shop around when searching for a business account, as different banks will offer different inducements to bank with them, such as free banking for the first couple of years, data backup facilities, business seminars, credit control services, and vouchers for web advertising.
As a general rule, it is a good idea to go with a bank that you have heard of, and that has a good reputation. Another good option is to go with an internet only bank that is owned by one of the big high street banks. Some of the lesser-known banks may offer better terms, but they are also much more likely to disappear off the face of the earth, leaving you in a very difficult situation indeed.
When choosing a business account, you should compare the transaction fees charged by each account. While the difference between them may not seem like much, they can certainly add up over the course of thousands of transactions. You should also look out for accounts that offer high credit interest rates and low borrowing rates. Also, try to get an account that offers online banking, as this can be an invaluable time saver. For more information about business accounts and current accounts, visit the Santander website.