Business Bank Accounts

[Bollo]

An unusually earnest post from me...

I'm in the throws of setting up my own business. I won't bore y'all with the details but it's something that will provide software-as-a-service (SaaS) for the energy/financial/project management type markets. There's lots yet to do and even more that can go wrong, but it's getting serious enough that I need to contemplate some business banking.

I've found a few candidates that tick the boxes in terms of facilities - extended free banking period for startups, good online access and tools etc. I'm NOT risking any major capital or assets and I don't anticipate the need for serious overdrafts or credit facilities.

The problem is that any attempt to compare the banks in terms of customer service leads to a set of self-selecting online reviews, most of which are variations on one-star "bank-sawed-off-my-legs-and-did-poo-on-my-dog" rant-fests. I'm not expecting great things - just a bank that can add up, doesn't lose my money and is contactable if and when something goes t1ts.

So all you business types, any balanced experiences of business bank accounts?

 

[Markymark]

Don't stress it. If you're not after business loans or complicated overdraft facilities then it's just a bank account like a personal one. Choose a convenient one that has a branch near you. Mine is the same company as my main personal account so speaking to people or moving money around is quick and easy. The level of access you get often depends on the turnover of your business so as a small startup don't expect a direct line but you should get an account manager and an email address who responds fairly promptly.

It has options depending whether you most likely are using the service counter to pay in money or if it is done online and that should be easy for you to answer.

 

[Tin Pot]

An unusually earnest post from me...

I'm in the throws of setting up my own business. I won't bore y'all with the details but it's something that will provide software-as-a-service (SaaS) for the energy/financial/project management type markets. There's lots yet to do and even more that can go wrong, but it's getting serious enough that I need to contemplate some business banking.

I've found a few candidates that tick the boxes in terms of facilities - extended free banking period for startups, good online access and tools etc. I'm NOT risking any major capital or assets and I don't anticipate the need for serious overdrafts or credit facilities.

The problem is that any attempt to compare the banks in terms of customer service leads to a set of self-selecting online reviews, most of which are variations on one-star "bank-sawed-off-my-legs-and-did-poo-on-my-dog" rant-fests. I'm not expecting great things - just a bank that can add up, doesn't lose my money and is contactable if and when something goes t1ts.

So all you business types, any balanced experiences of business bank accounts?

Much of a muchness. Usually two years free banking then the fees start.

 

[Jimidh]

We've been with the Bank of Scotland for last 8 years and they have been very supportive in terms of lending and day to day banking.

We have our own account manager who we used to meet regularly in the first few years, I think to check we were on track to pay their money back, but is still there when needed. They were very good and competitive when we required more capital to expand.

Their online system is good for making payments to suppliers and their bulk payment system works well for payroll.

We have always been very solvent so have never had any need to use an overdraft but they did give us a £20k facility in the first year FOC.

Our annual T/O is £2m+.

 

[Levo-Lon]

I never paid a penny in bank charges in all my 30 odd years self employed.
I just had 2 accounts ..one for my own personal use and one for business payments etc..
They tried to get me upgraded so I could pay charges but I never let them help me..

 

[vickster]

I'm with HSBC for business account. Simple to set up. They had the longest fee free period at the time and decent terms thereafter. Basically used to receive payments, pay myself and others (like the taxman). Credit card and contactless debit card. Might have an overdraft facility. Only thing is restricted to paying out a grand a day as standard so I pay myself in two chunks. I'm sure I could up that, but not bothered to phone. Good CS when I had an issue with my card (not HSBC fault). All done online otherwise

 

[Markymark]

I'm with HSBC for business account. Simple to set up. They had the longest fee free period at the time and decent terms thereafter. Basically used to receive payments, pay myself and others (like the taxman). Credit card and contactless debit card. Might have an overdraft facility. Only thing is restricted to paying out a grand a day as standard so I pay myself in two chunks. I'm sure I could up that, but not bothered to phone. Good CS when I had an issue with my card (not HSBC fault). All done online otherwise

You should be able to review your daily pay limit. Set it at a level that is convenient but for security, not too much.

 

[MacB]

As the legendary MarkyMark says, all much of a muchness just remember that they are businesses and nice as pie when touting for your trade and your standing is good. But you're dealing with script monkeys not decision makers and if things change don't expect your 'buddy' to help.

Only thing I'd add is really look at the fine print re charges, accept that they can alter/pull the rug at any time and keep reviewing them. If it goes well don't be afraid to play them against competitors to improve your deal, again he/she is not really your buddy....good luck mate.

 

[mjr]

Look for whatever deals your trade association or chamber has. Such group buying is the simplest way to get good service without high fees these days IMO.

As such, my experience would be useless to you because unless you're a cooperative, you can't have either of the accounts my firm's used.

 

[vickster]

You should be able to review your daily pay limit. Set it at a level that is convenient but for security, not too much.

I can but it involves a phone call and I've not been bothered enough to ring!

 

[MrGrumpy]

I never paid a penny in bank charges in all my 30 odd years self employed.
I just had 2 accounts ..one for my own personal use and one for business payments etc..
They tried to get me upgraded so I could pay charges but I never let them help me..

They try and get you always do the banks ! My wifes business account now attracts charges when depositing cash, so looking for other ways to do that. Also as a side note the Mother in Law withdrew some cash, a few grand to pay for work getting done on the house. Got asked all sorts of questions on why she needed to withdraw money etc. Just hope its with a view to protecting elderly from dodgy tradesmen ??

 

[Crackle]

Just hope its with a view to protecting elderly from dodgy tradesmen ??

I think there was a recent bank code change in procedures to prevent exactly that.

 

[annedonnelly]

I used Cater Allen private bank. Never had any charges. Deposits were either via post or RBS. The online stuff was a bit more clunky than you get from the big high street banks but for what I was doing it was fine.

 

[PhilDawson8270]

I had Santander for a simple business account.

No branch access, but great online and helpful via the phone.

Best of all, entirely free.

 

[Markymark]

I can but it involves a phone call and I've not been bothered enough to ring!

Fair enough but don't find yourself needing to pay a large bill urgently and not be able to.