Each step of a company’s development provides its own set of problems. You’ll need to select where you’ll put your money once it starts flowing in. A business bank account is required for most businesses, from huge corporations to sole traders. However, there are a few things you should know before opening one. Opening up a new bank account can be a headache, especially when you need a bank account for your business. You have to keep the many terms and conditions in mind and be ready for any surprised or unexpected costs that may occur. Read here below for some tips on how you can open up a business bank account.
Choosing a Bank
When looking for a new bank account, the first thing to consider is the basic services available. This includes both in-branch and online services, as well as alternative options. You should be able to deposit cash and checks, withdraw cash, and obtain cashiers checks in-branch. Customer care and assistance, as well as an ATM and other essential financial services, should all be easily accessible. Other than that, there are more important things to consider. There are several banks with several business bank account offers, so the question remains how to choose a bank? A few factors can play a role in this, for example:
Standing charges: these are the fees that a bank may charge for having a business bank account. These fees can either be monthly or quarterly. To make sure, you can discuss this with the bank
Transaction charges: sometimes a bank charges you extra for deposits or taking money out of your account. As a business account, this may be a frequent move, so do your research beforehand.
Internet banking: nowadays, we live in a digital world where you may want to have access to your business account wherever in the world you are. Which is why it may be important to find out whether your bank provides you with internet banking as not all the banks have that option.
Paperwork for a Business Account
In order to open up a business bank account, you need some form of identification. This could either be a driver’s licence or a passport, but to be safe and to avoid any miscommunication, do your research online and read what exactly is needed.
You may need to pay an initial deposit to open your account once you’ve established your personal and corporate identities. Banks and account types have different initial deposits and minimum balance requirements.
Choose a business bank account with a suitable initial deposit amount and minimal daily balance for your company. Determine the amount of your initial deposit with the help of your local business banker.
Furthermore, you need a proof of address. This could, for example, either be a bank statement or an electricity bill. Finally, you will need to present the business details, such as the address, contact details and as well as the registration at the Companies House. You also may need to show your expected turnover and your credit score.
Duration to Get a Business Bank Account
Opening a regular bank account usually takes a few working days, however with a business bank account it may take between 1 and 4 weeks to open. But, there are a few factors that may speed up the process, such as: having a regular bank account at the same bank; if you’re the sole trader and if the banks provide a faster service compared to other banks. The last can be usually found online and if you’re not sure, then it is always advised to contact the bank for more information.
When it comes down to it, most business checking accounts are very similar. The financial institution that provides them, the services they provide, and how you intend to utilize your account are what distinguish them. A local bank or credit union is usually enough if you only wish to run a tiny, individual company. If you plan to expand rapidly in the next years, be sure you choose a bank that can scale with your needs.
The financial performance of your business determines its success or failure, and a business checking account is the foundation of any business’ finances. If you make the right choice, you’ll be able to focus on your business rather than your financial account.
Keep in mind that this article is simply for information purposes only and for in depth information, it is strongly recommended and advised to contact the banks themselves.