Which Bank to Choose?
Many people decide to open their business account with the same bank that holds their personal bank accounts. Your own bank may be more supportive if you have a good financial track record and have built up a relationship with them.
However, it is a good idea to compare at least two banks before making a decision. Bank charges vary widely, as do the services they offer, so it's wise to make sure you are getting the right all-round deal for your business. It’s also vital to ensure that you gain the correct relationship with your bank – one that suits your own circumstances. The number of clients your relationship manager looks after is an important consideration.
As with your personal account, you may want to choose your business account on the basis of the bank's ethical or religious standing - whether its investment policies take into account issues such as human rights, corporate and environmental responsibility and "fair trading".
When comparing banks, it's a good idea to ask:
- whether the bank will give you a dedicated relationship manager
- how many clients that relationship manager looks after
- what services they offer
- how much those services cost
how charges are levied - is there a fee per transaction or a one-off charge
- whether there are any hidden charges - some banks charge you when they send out letters
whether there is a local branch - especially if you need to make frequent cash transactions
- if there is no local branch, can banking be undertaken via the Post Office or another bank
Establishing the correct banking relationship is one of the most important decisions you will make as a business owner. Lochroe is here to help you find the right solution.