Business accounts are as simple to manage as regular current accounts but come with a few extras - some good and some not so good.
Here we take a look under the bonnet of business banking.
Unsure about business finance? We explain what they are, why they charge and what they are good for business.
Why should I have a Business Account? If you are self-employed and own your own enterprise you may want to consider opening a business bank account.
Corporate banking is serious business and many of the high street banks now offer accounts tailored to suit your needs.
Many business accounts offer software packages designed to kick-start your start-up.
Using corporate computer packages can help you structure your business in line with short and long term strategies.
Then there is of course Internet and telephone-banking facilities.
Banking over the phone or online allows you to pay bills and make transfers at a time which suits you.
After all, standing in a bank queues is what we did in the 1990s.
Perhaps the biggest bonus to be gained from having a business account is your very own account manager.
An account manager can be of enormous value to your business.
A good account manager can offer years of experience in dealing with business finance and can suggest ways to get your business booming.
Anyaccount manager worth their salt will also double as a business consultant whenever you need an expert opinion.
For more information on business accounts see the link below.
Are there any charges? Business accounts incur many of the same charges as regular current accounts.
You may already be familiar with charges for unpaid direct debits, bounced cheques or exceeding an overdraft limit.
This type of account will likely penalise you for any of these plus a few more for good measure, such as paying in cheques for example or making money transfers.
How will I be charged? How you will be charged will depend on where you have a business account.
You may pay for charges on a one-by-one basis or alternatively over a monthly or quarterly term.
Some banks will only enforce a charge when a specified amount of transactions has been exceeded.
How can I avoid charges? The best way to avoid unnecessary charges is to understand the rules.
You should agree with your bank at the outset how, why and when you will be charged.
Based on that knowledge you can implement banking practices that will avoid most or at least the worst kind of charges.
Some tips: 1)Consider Internet banking as a way to avoid charges on transactions and money transfers.
2)Use direct debits and standing orders wherever possible - automated transactions incur very few labour costs.
3)Avoid using cheques.
How do I open a business account? Once you have compared business accounts and have found the right one for your business, you are ready to open an account.
To open a business account you will need:
Opening a business account should not be difficult.
How can I borrow for my business? If your business needs a little buoyancy it may be time for a cash injection.
Your account manager should be able to advise you which credit option best suits your requirements.
When you need to find extra cash for your company, you could consider one of the following: An overdraft - a business overdraft allows you to repay money borrowed at a time that suits you and can give you financial flexibility when you need it most.
Overdrafts, however, can be recalled at any time so it is never advisable to completely drain it of funds.
Business loans - you may consider a loan if you already have an overdraft or you need to borrow more than an overdraft would allow.
Loans are agreed over a repayment term so the bank cannot recall the amount at a moment's notice.
A business loan will in all likelihood be secured against your home of business premises.
Government grants - are especially suited to start-ups or businesses without security.
See the link below for details of how to apply for a Small Firms Loan Guarantee Scheme.
For information click business accounts
Here we take a look under the bonnet of business banking.
Unsure about business finance? We explain what they are, why they charge and what they are good for business.
Why should I have a Business Account? If you are self-employed and own your own enterprise you may want to consider opening a business bank account.
Corporate banking is serious business and many of the high street banks now offer accounts tailored to suit your needs.
Many business accounts offer software packages designed to kick-start your start-up.
Using corporate computer packages can help you structure your business in line with short and long term strategies.
Then there is of course Internet and telephone-banking facilities.
Banking over the phone or online allows you to pay bills and make transfers at a time which suits you.
After all, standing in a bank queues is what we did in the 1990s.
Perhaps the biggest bonus to be gained from having a business account is your very own account manager.
An account manager can be of enormous value to your business.
A good account manager can offer years of experience in dealing with business finance and can suggest ways to get your business booming.
Anyaccount manager worth their salt will also double as a business consultant whenever you need an expert opinion.
For more information on business accounts see the link below.
Are there any charges? Business accounts incur many of the same charges as regular current accounts.
You may already be familiar with charges for unpaid direct debits, bounced cheques or exceeding an overdraft limit.
This type of account will likely penalise you for any of these plus a few more for good measure, such as paying in cheques for example or making money transfers.
How will I be charged? How you will be charged will depend on where you have a business account.
You may pay for charges on a one-by-one basis or alternatively over a monthly or quarterly term.
Some banks will only enforce a charge when a specified amount of transactions has been exceeded.
How can I avoid charges? The best way to avoid unnecessary charges is to understand the rules.
You should agree with your bank at the outset how, why and when you will be charged.
Based on that knowledge you can implement banking practices that will avoid most or at least the worst kind of charges.
Some tips: 1)Consider Internet banking as a way to avoid charges on transactions and money transfers.
2)Use direct debits and standing orders wherever possible - automated transactions incur very few labour costs.
3)Avoid using cheques.
How do I open a business account? Once you have compared business accounts and have found the right one for your business, you are ready to open an account.
To open a business account you will need:
- Certificate of Incorporation (Limited Companies)
- ID
- List of people authorised to co-sign cheques
Opening a business account should not be difficult.
How can I borrow for my business? If your business needs a little buoyancy it may be time for a cash injection.
Your account manager should be able to advise you which credit option best suits your requirements.
When you need to find extra cash for your company, you could consider one of the following: An overdraft - a business overdraft allows you to repay money borrowed at a time that suits you and can give you financial flexibility when you need it most.
Overdrafts, however, can be recalled at any time so it is never advisable to completely drain it of funds.
Business loans - you may consider a loan if you already have an overdraft or you need to borrow more than an overdraft would allow.
Loans are agreed over a repayment term so the bank cannot recall the amount at a moment's notice.
A business loan will in all likelihood be secured against your home of business premises.
Government grants - are especially suited to start-ups or businesses without security.
See the link below for details of how to apply for a Small Firms Loan Guarantee Scheme.
For information click business accounts
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