I know the bank will charge interest, but will they be interested in me?
When setting out in business you will require a Bank Account for your business transactions. When choosing a bank for your new business, do not make the mistake of using your personal account for your business transactions as this could result in many queries when preparing your books.
Which bank do I use for this purpose? Well if you already have a personal account with a Bank then a banking relationship already exists and it would make sense to talk to them about your business banking needs. Alternatively approach a number of banks and see what they have to offer.
Some banks will offer free banking for a period after setting up in business. Discuss your needs with the business advisor who would be responsible for looking after your account. If you feel comfortable with a particular advisor then open your account with the bank.
You will require a Business Current Account for you day-to-day business transactions. A cheque book and paying in book will be provided.
If you find that you build a surplus credit balance on your current account then consider opening a Deposit account for your surplus cash.
If you register for VAT then consider opening a VAT account. As payments are received from customers transfer the value of the VAT element to the VAT account. You will by this method have the VAT set aside for when you have to submit your quarterly VAT return.
Online Banking has become an important feature of the modern day bank account. Online access to your bank account aids better cash flow management and also enables you to move monies around between accounts to maximise interest.
Relationships with your Business Advisor
Whilst not advocating that you telephone your business advisor every week or so to advise him/her how your business is developing, it is important that you keep you business advisor abreast of any important issues. This is particularly the case when you are borrowing from the Bank. Banks hate surprises and therefore if a problem arises keep the business advisor informed. The earlier you act the less of a problem.
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