Bank

Find the right bank for your business

Setting up a small business is exciting, but requires a huge amount of support and advice. The first place to turn for expertise is your bank. But because personal banking and small business banking are very different, you may find a new bank offering more specialized services may bring advantages. Consider these key points as you look around:

[Q1] Begin by checking out the written material

[A1] Drop by a few high street banks and take a look at their written information for small business clients. Do they have a start-up guide? Is it concise and clear? If it answers your questions and provides valuable information, then the bank is more likely to be able to provide a good service to your company.

[Q2] Is the bank online?

[A2] Time is a highly valuable commodity for those running small businesses, and online banking means that many transactions can be executed at the click of a mouse. If your bank offers this service you will be able to access bank statements, transfer money to high-interest accounts, and verify the status of cheques paid out.

[Q3] Do they offer free banking?

[A3] Many banks offer a period of free banking for new small businesses, and sometimes the period can be extended if you agree to do a business start-up training course. On the other hand, if a bank offers discount banking for a longer period then this option may make more financial sense.

[Q4] Check the proximity to your office

[A4] While Internet and telephone banking will mean fewer trips to the bank, don't underestimate the importance of finding a bank that is close by. You will still have to 'pop' in regularly (to pay in cheques if nothing else) and the closer your bank, the more flexible you can be in your daily schedule, and the more time you will save.

[Q5] Do they offer overdraft/loan facilities?

[A5] Check and see if the bank offers good terms for new small businesses, and for what period of time. Also, it is important to find out exactly how much credit can be extended to your company and whether the amount is at the discretion of your bank manager or if it's pre-determined. A loan may be necessary for initial outlay and overheads, so it is essential for you to come up with a solid business plan and carefully calculated figures.

[Q6] Is there a small business advisor in your branch?

[A6] This could be particularly important when you are establishing your business. An expert advisor will be able to ask you the relevant questions and draw your attention to common stumbling blocks and pitfalls. Check on whether this service is free, and how easily you can get access to that person.

[Q7] A name and a face always help

[A7] Will your bank assign a particular person to your business account enabling you to develop a close business relationship? A person who knows the finer points of your business will be more in tune with your specific day-to-day banking needs and will save you time.

[Q8] Company credit cards