Which Bank Is Best For Business Banking - Startup founders have an endless to-do list, and the decision about which bank account to open is often overlooked. For the first few months, you'll need an account that allows you to pay with a company card or bank transfer, and also allows for easy recordkeeping for financial reporting. What about accounts with advanced features? Is it worth it early? These additional tools can help you scale, e.g. Invoice management, salary management.
We've ranked the most popular UK business bank accounts so you can compare the best options and find the account that suits your needs.
Which Bank Is Best For Business Banking
A business bank account works similarly to your personal bank account, but is used to manage business income and expenses (ie inflows and outflows). You should keep your personal and business funds separate as soon as possible. Not only will this save you accounting time, but it will also give you a clearer picture of how your startup's money is being used.
Reasons To Separate Business Vs. Personal Bank Accounts
There are business bank accounts for every budget and operational complexity. Simple solutions allow you to send and receive money in a variety of ways, and more sophisticated offerings can include tools such as invoice management, payroll management, accounting and tax return management.
If you want to avoid unnecessary paperwork and delays, you should consider opening an online business bank account.
The best business bank account for your small business is the one that fits your profile. We've created four examples of small business types below, all based on hundreds of hours of startup interviews, and we've provided suggestions for each.
Revolut Business or Starling Bank are worth checking out here. They both publish their fees online, so it's easy to compare the two. Before proceeding, check if the currencies requested by the contractors are supported.
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"You have the same mix of local and international payments, and customers pay you in multiple currencies, so you need a multi-currency account."
Traditional operators are terrible when it comes to international payments, so they leave them out. Revolut Business is worth considering. This is also the focus of Rebank - most of our customers fit this description.
"Mostly do local payments (eg payroll) with some card payments, but not much account activity other than that."
You don't care about the latest trendy fintech app. You're happier knowing your money is safe and won't disappear when that fintech fizzles out.
Best Business Bank Accounts For Sole Traders
We recommend going with a company such as HSBC, Barclays, Santander or Lloyds. Yes, they can be more expensive than newer banks, but only if there is a lot of activity on the account.
Banking and finance are boring. The best business bank account for sole traders is one where you just need a way to accept customer payments and pay for things easily. The likes of HSBC, Barclays, Santander or Lloyds will certainly work, but Mettle or Tide are worth checking if they allow you to accept customer payments.
Not all banks are set up to accept customer payments from Stripe, Sum Up, Paypal Here etc so it's worth checking with your bank first!
Rebank works with any of the existing banks and allows you to make global payments at the lowest possible exchange rates.
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We compared costs between banks, creating an example of a company spending £5,000 per month on local bank transfers and international transfers (eg salaries, bill payments). See the results in the table below:
Tejarat Bank Comparison Chart. An unbiased look at the best commercial banks available for small businesses and startups.
Most of the banks I spoke to have an electronic application process. This means you can upload documents safely. You must provide information:
Due to recent world events, the time frames for opening a small business bank account have changed significantly. Opening an account with an existing bank (HSBC, Barclays, Lloyds, Santander) can take up to 12 weeks. Newer banks can take 48 hours!
How To Choose The Best Company Bank Account For Small Businesses
The best bank accounts are not necessarily the best banking platforms. Know what you're getting before you commit. Getting a business bank account in 2022 is very important if you have an existing business or if you are thinking of starting a small business as a sole trader or startup. Having a secure place to organize your finances allows you to track business progress and claim VAT, among many other things.
In addition, finding the best business bank account for you can provide you with a superior set of exclusive benefits or simply a longer term with no monthly fees. The following UK commercial banks are included in this review:
It allows you to compare the business bank accounts available from UK providers so you can choose the account that suits you best. Although your current account provider can do business accounts, it's always worth comparing to see if another provider can offer you a better introductory course or similar benefits that will help you as a business owner.
A business bank account is a safe place to keep all the finances associated with a small business, start-up or limited company.
Steps To Opening A Business Bank Account
This is usually provided by a bank or building society which can cater for commercial customers. This may include providing a business manager who can help you organize your finances or other benefits that are beneficial to you as a business owner.
There's usually a monthly fee to set up a merchant account, although you'll often have an introductory period where you don't have to pay anything. At the end of this period, it is often a good idea to switch to another trading account so that you can get a new introductory offer and avoid paying fees for a longer period of time.
As a business owner, it can be difficult to keep track of your finances if you don't organize them into a separate account. Even as a freelancer, having money for personal expenses can be a nightmare to deal with every month, so it's much easier to have a business bank account in general. Take a look at the list to discover the benefits of having a business bank account:
Although not necessarily an advantage, having a business bank account is also required for paying tax to HMRC, which you must do annually via your self-assessment tax return.
Best Bank Account Bonuses For January 2023
It's actually much easier to open a merchant account online, especially with some providers that are completely app-based and don't have any branches to visit. Many business banking providers either require you to fill out an application online or allow you to do so through a native app that you can download to your smartphone or tablet. Create an account.
The following details are usually required to open a business bank account, although each provider has its own requirements when applying:
Each provider will have their own way of applying, so if you're planning to apply online or switch to a new business bank account, make sure you have plenty of relevant information.
Before you apply, it's always worth comparing business bank accounts to see what introductory offers are available, along with any perks or benefits that could help you as a business owner. Take a look at our individual reviews below, which will give you a glimpse of what you can expect from each provider.
Choosing A Business Bank Account For Your Start Up
While many traditional business bank accounts have monthly fees as standard, Tide is a little different. With no monthly or annual fees, getting a Tide business bank account is a great way to get started as a sole trader or startup, and you'll want to keep additional fees as low as possible.
Because Tide is app-based, you won't have the option of going to a branch, but you can still access it from your smartphone, tablet or computer. With innovative features like accounting software integration and invoicing, you can easily track your expenses on the go, ideal for a small business looking to grow.
As a modern challenger bank, Revolut is already well known for offering accounts that help customers transact across Europe. If your business is international, it might make sense to use a provider that specializes in international and multi-currency transfers.
Although it doesn't have branches to visit, as a small business owner, sole trader or freelancer, you can still get plenty of support online and manage your business finances on the go. The smartphone app is a great way to check your account 24/7, and you can always upgrade to a paid account to unlock more features.
Best Business Bank Account In Hong Kong
As an established bank, TSB offers access to your business bank account not only from your smartphone and computer, but also through local branches, unlike many of its competitors. Along with a free banking course, TSB is a great option for first-time business owners and those looking to switch their business account.
TSB has had many different faces over the years, but has been actively offering consumer and business credit products since 1985.
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