There are many things you need to consider when starting out with your business venture, but top of your to do list will be to select a bank that will not just hold onto your revenue but also provide the support and give you the best possible deal you will need as your business grows.
Don’t Combine Your Business and Personal Accounts
One mistake people often make when starting out in business is combining their personal accounts with their business account. This makes it very difficult to stay on top of your books come tax time. It will create a lot more work than will be necessary. You will find yourself using up precious hours looking through statements, trawling through transactions, separating business and personal. Having separate accounts will make tax time a whole lot easier to deal with.
Do Your Research
What can’t be stressed enough when looking for a bank to support you, is to do your research. Researching online is usually the best place to start. Comparison sites are a fantastic way of looking at what is available, providing a wealth of information in one place. That isn’t to say that comparison sites do all the research for you. Be sure to make multiple comparisons and don’t be slow to call the banks and speak to a business manager who will be able to give you some detailed answers that you will need to create a shortlist.
Credit Score
Credit score will be a factor when you open a business account. If you are staring with little funding you will probably have to look to your bank for an overdraft facility, credit card or a business loan. Having a healthy credit score will help you in opening better business accounts and will put you in good stead in applying for overdrafts, credit cards and loans etc. If you have a low credit score, then seeking financial support from your bank can be a struggle. Be sure to look at your credit score before making an application so your business advisor at the bank can offer you the best possible advice.
Incentives
It is good business for banks to obtain as many business customers as possible, so they will offer you incentives to try and win your business. (do your research).
Typically, most banks will offer one or two years free banking which is great for businesses trying to get off the ground, so research what is available.
They will offer other little perks such as free video and software to entice you to sign up. Be sure to make sure what is important to you and your business at the beginning and don’t get bogged down in all the nicely wrapped offers the bank will inevitably offer you.
Also make appointments to see business advisors at two or three banks to get a good sense of what is available and who is going to offer you the best support in getting your business up and running.
So, the research has been done. You have seen two to three bank advisors and they have pitched their services to you. Now it is time to make your decision and get the ball rolling. Although this is a major decision don’t take too long in making it as having the right bank for your business can be vital.
Also make sure you get a named contact at your bank. When you have an issue or a query you can ask for this person direct.