Good business banking is one of the most important things for both big and small businesses. Good business banking will help your company's money flow smoothly and save you a lot of time and money. If you own a small business and don't know where to start with business banking, here are a few basic tips to get you going:
Finding a bank
You need to find the right bank for your needs before you can start doing business banking. Most of the time, it's not a good idea to use your current bank for your business needs unless they have the best deal. This is because it's a good idea to keep your business and personal finances separate. It also keeps all your money from being in one bank. Second, because banks are so eager to get new customers, deals are often better for new customers. No matter what bank you use, you should look around for the best products for your needs.
Getting a bank account
Once you've picked a bank, you'll need to open a business account. This is probably the most important step. Before you can open an account, there are a few things you need to do. First, put together a business plan to show the bank where you want your business to go. Also, if you are a new business, you may need to show proof that you have enough money to start. Your own credit history and the credit history of anyone you do business with will also be looked at. You will be able to open an account once these checks are done.
Specs and prices
The features and rates you get will depend in part on the size of your business, as well as on how your credit checks and business plan are evaluated. You should start with a simple account that lets you take money out and put money in. As your business grows, you can add features like a savings account with a high interest rate.
Companies with limited liability
If you want to start a limited company, you have to open a business account. If you are a sole proprietor, it is not required, but it is a good idea to have an account with both your name and the name of your business. When you ask a client for payment, this can make your business look more professional. For example, it's more professional to have checks made out to "John Smith T/A (Trading As) John Smith Services" than to just have money sent to your personal account. Having business banking will help you no matter how big or small your business is.
Online banking
One of the best ways to handle your business banking is through online banking. If you want a business account, you should think about getting one with online features. This will make basic banking much faster, and you won't have to go to your branch every time you want to pay money in or move money.
