Choosing your business bank account Page 2
Borrowing
If, as many startups find, you need some funding to get you started you may find it’s not which bank you choose but rather which one is willing to lend you the money. You may well have to do the rounds clutching your business plan before you find an amenable bank manager. If that’s the case then it’s not much of a choice for you.
Even if you don’t need funding straight away do think carefully about whether you may need a loan further down the line. If that’s the case you will want to start developing a relationship with your account manager straight away so that he/she is familiar with your business when the time comes.
Location of nearest branch
Finally, if you are based in a rural area you may want to take into consideration how close your local branch is. Is it convenient for your day-to-day banking? If not what other options are there: internet banking, banking through your local post office? Our bank provides us with envelopes to pay money in by post but I’ve never been comfortable with trusting our hard-earned cheques to the postal service so make a weekly trip to our nearest town to pay them in.
To sum up, it’s worth taking your time over choosing your bank as this will hopefully be a long-term relationship. Get information packs from each bank and see what they offer (or read up on their websites). If possible make appointments to go and talk to them and get a feel for their level of service.
Further reading
Websites
- Abbey
- Alliance and Leicester
- Bank of Scotland
- Barclays
- Co-operative
- HSBC
- Lloyds TSB
- Natwest
- Choose and run a business account (Business Link)
Books
- How to Fund Your Business: The Essential Guide to Raising Finance to Start and Grow Your Business
by Steve Parks
- Raising Finance for Your Business: A Nuts and Bolts Guide for SME Owners and Managers
- Raising Finance: A Practical Guide to Starting, Expanding and Selling Your Business
