The right bank

[Beanmetalworks]

morning

right the time has come lol

Been running my business out of my personal account for past 2 years and i have decided that now i want to get a business account so would like to no if anyone has any recommendations of any good banks????? well good as far as banks can go??

at mo i have Halifax but they not got business side so that's handy.

just looking for bank that someone has used that seem like the most helpfull?

 

[ajlelectronics]

It isn't so much the bank brand as the personality of the business manager. I have been with NATWEST twice, for many years until the manager gets promoted and moved away. Then it all goes to pot. Lloyds seems only interested in hard selling, they ask for your mobile number (just for emergencies) and you then get besieged by sales calls. Barclays have been OK but in 9 months, I have had no contact from the bank to see if all is well. You pays yer money, as they say.

 

[rtbcomp]

It's a minefield.

I'd go to the one most convenient, it can depend on the manager as AJ says, but a lot is done at regional and national levels. My NatWest manager was a waste of space, he kept saying his bosses were running my account.

Be prepared to move if you have to, and don't get tied to a bank because they're lending you money you don't need.

 

[astro_al]

Use an online account / 'e' account and take the opportunity to not pay any fees. I recently moved to Santander's online only account (business a/c). Its pretty good. Who the hell needs a bank manager these days - that'd be useful for a loan maybe, but you're not going to get one of those anyway!

I agree about the comment re Lloyds though.

Al.

 

[Shox Dr]

First question I would ask is why do you need a Business Acc. If you are a sole trader then it makes no difference. I guess most of your purchases will be made with a Credit card, so no need for one there. As others have said even if your branch has a manager they will have nothing to do with your account.

Don't borrow it from your bank, they have constant access to ALL of your accounts as soon as they think you are not doing so well they will pull the plug. If you want business advise they will charge.

And no top of all this, you get charged for holding money in YOUR account.

If you want to keep your "personal" money out of trading funds, open another personal account in another bank. Now be aware this is far from easy these days, tell them you are fed up with bank xxx and you want to move, you want to setup an account and get it up and running, before you close the other. Don't give them any more info than you must.

 

[Chipper]

I found HSBC useless to get started with, loads of problems to sort but that might be local branch luck. Went to Barclays who were fine, but with the company I'm at, I find them a right PITA. Our "account managers" seem to exist to give out the customer services number... different kettle of fish though, several multi million accts etc.
They were very good when I was a lone wolf, and the other half has her business accts with them.

Like rtb says, picking a nearby bank has a lot going for it.

 

[stuvy]

Like rtb says, picking a nearby bank has a lot going for it.

Im with one that a few minitues drive so i can go in and argue loudly at the counter which surprisingly still gets things done

 

[brightspark]

if your running business from personal acount u wont pay any bank charges business banking u will and there all robbing b ..stards they never ever ring me up asking if i need anything as they have been told not to . only phone calls il accept is from my bank manager at local branch and thats only if theres something a miss

 

[Beanmetalworks]

Ok cheers for advice from this advice it seems I'm best sticking as I am right???? Don't seem to make much dif if I have a personal account or bussiness one? Was thinking it would help for future if day comes and I do wanna borrow some money, thought having a bussiness account may look better in there eyes?

 

[astro_al]

It won't matter what 'type' of account you have. If you are completely self employed you can use either a personal or a business type account for your business.

I would strongly urge you to set up a separate account for your business though, and take 'drawings' from it into your personal account to pay yourself. It makes things MUCH clearer.

Good luck borrowing money... Al.

 

[rtbcomp]

We're all assuming you're self-employed, not running a limited company or not in a business partnership.

If so then stay as you are if the bank isn't complaining. With all your money in one account you don't have to worry about moving money between them.

 

[Paul.]

It won't matter what 'type' of account you have. If you are completely self employed you can use either a personal or a business type account for your business.

I would strongly urge you to set up a separate account for your business though, and take 'drawings' from it into your personal account to pay yourself. It makes things MUCH clearer.

Good luck borrowing money... Al.

Best not to tell the bank what you are up to though, you will most likely find that the terms of most personal current accounts state not to be used for any form of business, just trade in your own name and make sure cheques are made out to you, and not Beanmetalworks or whatever.

 

[Chipper]

It's easier having a separate biz account (have one current and one "savings" for putting aside bits for tax) when it comes to bookkeeping and accountants, if you need them. The bank statements make it easier for you and them.

 

[astro_al]

Exactly, why would you not open one?

You DO need to do financial admin, the account costs nothing to have / run, you have a clearer picture of your personal and business finances and it's better for sorting tax, accountants etc.

You can transfer money instantly between your accounts online.

??? Al

 

[rtbcomp]

In my experience business accounts do cost money to run.

1) I had one with NatWest, my manager promised no charges as long as I stayed in credit, which I did. He was overruled by the area manager. I eventually complained to the Ombudsman who said they couldn't deal with this sort of problem.

2) Similar with Alliance & Leicester, they advertised a free account for life. They started charging.

The terms and conditions state that they can alter the terms and conditions at will. Thus making the T&Cs meaningless.

I'm now a one-man business; paid in cash, pay in cash. The one or two cheques I get per year are made out to me and go into my personal account.

 

[astro_al]

What can I say, mine doesn't. I think a lot of banks now run 'e-accounts' (internet based) which have low / zero fees.

I couldn't run my business on cash - how do you order stuff over the net etc?

Al.

 

[rtbcomp]

I use my own money from my personal account.

 

[snowcat]

Ok cheers for advice from this advice it seems I'm best sticking as I am right???? Don't seem to make much dif if I have a personal account or bussiness one? Was thinking it would help for future if day comes and I do wanna borrow some money, thought having a bussiness account may look better in there eyes?

It all depends on the people your working for and the business your proposing in the future...

Rule No 1, keep your working capital and your personal money separate, even if you decide 2 personal accounts will work, Its too easy otherwise to start to subsidize the business.

Banks will and do quite simply charge for everything, The cheapest way of collecting payments is Via BACS some banks have this as a free option, even keeping facility's for Overdrafts is charged even if not used.

Local business managers are gone and replaced every 18months, Its general policy to stop managers getting too much in the pocket of clients, most want to do a meet and greet when there first in the job, I don't even bother they are toothless these days where all the power lies at the central computer.

With that said if you are planing to become a decent sized business you will need a T/A, Most company's will want to make payments to an account to match the Trading name, alarm bells ring otherwise. As you said also running an account with a history will also develop a credit history for you company, and again if you do become a sizable concern borrowing in one form and another are often the only way to expand.

IMHO Its a necessity for business to have a proper account.

 

[rtbcomp]

.......... As you said also running an account with a history will also develop a credit history for you company.............

That would only apply to a limited company, not a sole trader.

 

[snowcat]

That would only apply to a limited company, not a sole trader.

Many sole traders become LTD as they grow anyhow, for Taxation reasons, so the account simply becomes "suchensuch LTD", It builds a history with the bank...

Most banks offer startup deals of free banking for 2 years, which you might as well take..