How to find a business bank account for a small business
When it comes to small businesses, setting up can be a bit of a minefield with many contracts to sort, be it finance, card processing or business banking. Our short guide will help you to choose business banking for your small business requirements.
Does small business banking differ from larger companies?
Bank accounts for SME’s operate in exactly the same way as those for larger companies. That said, when searching for a suitable account for your small or medium sized business pricing may be more important for smaller companies as profit margins tend to be smaller. Before applying for an account, we suggest you think about your business requirements in depth to ensure your needs are met long term.
What to expect when applying for a small business bank account?
If you are new to business, it’s important to understand what to expect prior to applying for your small business bank account. Application requirements and times will vary between each bank, as will the criteria of the types of businesses which will be accepted. Most banks will process applications online, however ordinarily you will need to provide;
- Proof of address
- Business registration with companies house if limited company
- If you are a Sole Trader, proof of trading such as invoicing or contracts
Finding a suitable business bank account for an SME
Each business has a unique set of requirements, especially when it comes to finance, opening a business bank account is no different. When reviewing and comparing costs of small business bank accounts it’s important to think about the transactions your business will be making regularly as this is where most of the costs will lie. For example, will you be depositing cash on a daily basis? Will you be sending money abroad?
Every transaction will have an associated cost. Most small business owners focus on monthly and set up costs, overseeing where the business will be long term, with what potentially will be the larger fees.APPLY TODAY
Best business banking for small businesses
Some banks and building societies offer preferential terms for small businesses and start-ups. They often have flexibility when it comes to the monthly service fee, be it for an initial period. When applying for an account, it’s always worth asking for banking discounts for small businesses.
Switching small business bank account
If you are not happy with the service, you are experiencing from your current provider or feel like your small business is paying over the odds for business banking then it’s always worth shopping around and switching account. Most business owners start by applying to the bank they have their current accounts with; however, this might not always be the most suited solution for your business.
What to expect when applying for a SME business bank account
Most banking applications can now be carried out online, however you may still be required to provide documentation to support your request. If you can package your application correctly, not only will it increase your chances of getting accepted first time, it will increase the speed in which your account is agreed. Documents normally include;
- Proof of address
- Company registration details
How Merchant Advice Service can help
Merchant Advice Service are pleased to assist small businesses in finding suitable banking solutions. Our partnering banks accept applications from SME’s on a daily basis and offer minimum monthly service costs for new businesses.