Business BankingWhen in business, one of the most important relationships you will have is the one with your bank. A good relationship makes running your business easier and a poor relationship can be very disruptive and costly. It is therefore important to choose your bank with care.
Your needs and the needs of your business will dictate what service and support you will require a bank to provide. Choosing your bank should be based on who can best meet your needs for the lowest cost. You should note that charges are applied to business accounts for services that we take for granted as free for our personal accounts. Bank charges add cost to your business and should be carefully checked when comparing different banks.
Your banking needs will change over time, so it is important to review your banking arrangements every couple of years in order to check that you are getting the service and support you require at the best price.
Choosing A Bank
If you have a have a personal account with a bank and you are happy with their service, it is useful to speak to them first. If you already have a good
relationship with them this may make things easier for you. However, it should not stop you from shopping around for the best deal. If your existing bank is willing to offer you this, fine. If not, look around and choose the one that will.
The following sections cover the key factors that are important in deciding your choice of bank.
Bank Charges
Banks charge their business customers for many types of transaction. The amount they charge and the type of transactions that are chargeable varies from bank to bank. Some typical transactions that attract bank charges are:
- Paying cash into the bank;
- Writing cheques;
- Direct debits and standing orders;
- Duplicate statements.
Free Banking For New Customers
Free banking is provided by some banks for new customers. In several cases, standard bank charges are not applied for 12–18 months, which is very beneficial. Although this can be a great incentive, it is important to ascertain what your charges will be once the free banking period is over.
Location
You will need to pay cash and cheques into the bank on a regular basis. You may also need to visit the branch to set up your account, talk to business advisers and complete other paperwork. Because of this, it makes
sense to use a bank that is located close to your pub. Banks with parking facilities or located close to a place where you can park your car will make the task of paying in cash safer and easier.
Night Safe Facilities
Night safe facilities can be an advantage. These can be used to deposit cash out of hours and on bank holidays, there by reducing the amount of cash you hold on the premises. This is important from a safety point of view, and your insurance policy may restrict the amount of cash you are allowed to hold on the premises too.
On-Line And Telephone Banking
Many banks now offer on-line and telephone banking services to their business customers. This allows you to check balances, make payments, set up direct debits and standing orders and provides a range of other services. You can use this facility out of normal bank opening hours and eliminate the need to visit the branch for many transactions. It is a great benefit to licensees who are often bound to their pubs for long periods of time.
Access To Support And Advice
Having access to support and advice can be important, particularly in the early stages of running your business. It is worth checking whether you have easy access to business advisers and the bank manager. Having a single point of contact who knows you and your business can be very helpful.