Starting a business can be one of the most stressful and difficult experiences to undertake in life. It is due to this difficulty that you should take extra care when considering the business account you should open. The choice of bank account will be one of your first decisions in the progress of your business. As such, it is a fundamentally important that the right decision is made and you open an account that suits your businesses needs and requirements.
The most tempting option is to purely open a business account with the bank that already holds your personal finances. This is rarely advisable; giving one bank power over all elements of your financial life can be detrimental. More important however is that if you just take this easy course you may miss out on great deals offered by other banks. Other banks may offer an account with lower charges or higher interest rates. Some banks even have unbelievable offers for new customers that are simply not available to existing customers, it here that as a new customer you can get a great deal on your account.
While many will advise to follow the attraction of interest rates, this is not always the best path. While a high interest rate may promise to bring you a percentage of your credit, in the first two years of your business operating it is unlikely the amount of credit in your account will be substantial enough to generate significant amounts of interest. Of more importance to those starting out in business it is advisable to look for an account that has lower charges instead of a high rate of interest. This way, when you are forced into your overdraft you will not be heavily penalised.
In terms of payment systems, you need methods of payment that suit your business. For instance if you predominantly deal with customers who use credit cards, your account should be able to take credit card payments, businesses such as restaurants and shops will benefit form this kind of account. If cash is your main means of payment, an account that does not fine you for many transactions is advisable. By fully researching what kinds of payment methods are included in any particular form of account, it is possible to find an account that will grant your business maximum profitability.
Transaction fees should also be considered to ensure you are making the most of your payments. Normally fees for transactions are based upon either a monthly or pro-rata basis. If you think your transactions will be limited, then a pro rata system of calculating the fees is advisable. On the other hand, an account that charges for transactions on a monthly basis will allow your business to process many transactions. Transaction charges also vary for electronic and paper processes so it is advisable to find an account that will match your business operations.
In terms of access there are a number of options that may suit your company's requirements. Many banks now offer online banking solutions; this can be extremely useful if you find it hard to visit the bank during opening hours as they allow twenty four hour access to finances. A wide variety of banks also offer telephone banking services for their business account customers, ensuring that transactions can be made and monitored around the clock.
Along with these considerations, taking into account the level and quality of advice you may receive should also a factor in your choice. Ideally you will want a named advisor that will be able to form a relationship with you and will be sympathetic to your business requirements. Failing this however, a team of advisors can do a similarly effective job.
By following this advice you should be able to find an account that perfectly suits your business needs and operations. These factors are of prime importance if you want your business to realize success. Success is the name of the game in business, getting a solid financial base is essential to achieving this success.
Financial expert Thomas Pretty looks into the importance of the right business account in achieving success for your company.