Below we’ve listed our choice of the best business accounts available on the market today. To get started with an application simply click on the provider below and you can apply direct via their website.
When setting up a business, the majority of sole traders decide to open up a current account solely for their business. While this isn't obligatory - it is not illegal to use your personal account for business if you are a sole trader or individual - it is still a good idea to have some kind of separate account in order to conduct your business. Having separate accounts will allow you to keep a better grasp of your money, and also ensure that you know exactly how much you have received in the way of personal income in addition to the income from your business. The business current account can be an essential part of your company, and so you need to be happy with the deal you get from the bank.
When you decide to choose a business current account, you are selecting something which can be fast, flexible and convenient. Some accounts can also be very affordable, which you need to consider when you are setting up your business. You may be offered the business equivalent of a current account, with debit card, rewards and other bonuses which make the current account seem more interesting. What you will get with that account is the ability to sell and buy items online, or in person, without having to drag a cheque book behind you, or use your personal credit card and then 'repay' yourself when the card bill becomes due.
The most basic forms of business accounts will provide you with a cheque book and a paying-in book. These are often offered to businesses where the owner already has a slightly doubtful credit score, and the bank is not willing to allow them a debit card or an overdraft. However, even with this most basic of accounts, if you work hard you will be able to gain the trust of the bank, and they can then extend credit to you as though you were a new customer. If you are allowed to borrow money, your basic business account may be charged at a high rate of interest.
More complex business accounts offer extras, which might include free banking for a certain number of months, a good rate of interest when you have money in the account, easy transactions without fees for a few months, and even overdrafts. However, even with a business account like this, you could still find yourself paying high interest rates and fees for all kinds of standard processes such as paying in money, withdrawing money, or conducting online purchases.
When you need a reasonable bank account for your business, there are a few banks that can offer you a reasonable selection. One example is NatWest, who offers a free overdraft of up to £5000, and free banking for two years. There are also free online courses for home businesses to start learning how to handle your money. Known as the business start-up account, it offers other information including employment law and health and safety tools up to a value of £350. There is also free business insurance for 2 months, and also free use of the business credit card for the first year, with a charge of £32 thereafter. However, try to pay for an item without the funds, and you get a fee of up to £35 until your account is paid back.