Business banking

[j_fowler11]

Hi, I'm looking to start a new business bank account but want to know who has the best reputation for small business and low fees etc? I have banked personally with Barclays for years but would not touch them again because they are awful! I have transferred all my personal accounts away from Barclays to Cahoot. So anyone but Barclays will do!

It will also be a very small business to start off with run part time as well as working full time for a 'safe' income.

Thanks for any advice

John

[tommy]

I would recommend HSBC.

I use them for my business and they couldnt be more helpful, especially when setting up new, they gave so much advice. Plus I used to work for them so basically know how they run.

[Rob]

John,

If you are only to run this business part time your main priority will be to find a Bank that will offer you 12 to 18 months free banking.

You can also keep costs down by going for accounts which operate vis phone or post. Try some of the Building Societies who are now offering business accounts.

If your turnover is going to be fairly low, why not operate through a personal account? There is no legal requirement to have a 'business' account and as long as you aren't Limited or using a trading name then there is no problem. This will keep your charges down.

[gary]

Abbey does free banking if you have limited transactions, which it sounds like you will have. Have a look at http://www.anbusiness.com/

Gary

[faz]

you could also try bank of scotland. They offer free business banking forever limitations apply.

[j_fowler11]

Thanks for the advice. I'll look at those banks. I was going to use my personal account at first but I can't get any suppliers without proof of having a business account.

Thanks again.

John

[StartUp]

Hi John,

I would say the most important thing is not the bank, but the bank manager. I have had clients with all the major banks and any one can be fantastic for one person and awful for the next.

If you do decide to use a personal account, do open a separate account otherwise everything will get very confusing (and your accountant will hate you!)

Also think about how you will use the bank. If you use Cahoot I assume you like to do most stuff online? If this is the case you need to look at the online banking demos before going ahead too, as they can very a lot.

Egg do a great facility on their website where you can register and look at all of your bank accounts at the same time. THis is great for keeping an eye on your finances.

Moneyfacts do a comparison between banks if that helps (look at the business section) www.moneyfacts.co.uk

Julia

[acf]

I had been with Barclays but they are quite stiffed neck. Now I have my business account with NatWest and am quite satisfied. They also offer free banking for say 12-18 monts. Try them.

[Electranet]

We have used the Bank of Scotland for the past 2 years. The only charges that they levy on us is a flat rate of 40p per cheque that we write. Everything else is free and their online banking is easy to use.

Suits us as we don't write many cheques but may not be so suitable for you! :lol:

[Ozzy]

Hi John,
I have used Barclays and Natwest for business banking, and each has its pro's and con's. Both will offer 18 months free banking (and if they wont speak to me and I can get it for you).
As Julia says, it is the business manager that is the key not the bank itself. Have an interview with all and then choose. For what it is worth I find Barclays online banking quicker to use but it has a stupid bug where you cant delete a payee record if you dont need it any more. You can also have all your personal, business and sole trader accounts under one login .. you cant do this with Natwest.

[kyber]

LAM Design is with Abbey BUT has found them a right PITA whenever there is a need to contact them as phone queues get very bad at times. They have promised to improve but have not seen much evidence of this yet,

[KM-Tiger]

LAM Design is with Abbey BUT has found them a right PITA whenever there is a need to contact them as phone queues get very bad at times. ..................,

Queues? I have a direct dial number for the manager who deals with my account, in his absence it is answered immediatley by an assistant. The simple threat of moving the business account produced this number, although I gather Head Office policy is not to give these out.

I'd better not say which bank it is - I don't want to get him into trouble!

[daveashton]

One of our problems was very basic, we did not want an overdraft, we did want free banking and we also wanted an expenses card i.e. delta / switch brather than a credit card.

The only bank we could find that offered the card ( 2 needed) without an overdraft was abbey. They also enable us to put cheques in through the hole in the wall so I have never actualy been in a branch!!!

[MikeH]

All banks 'should' provide free banking for at least 12 months. What you will probably find is that many will extend this to 18 months if you have a personal account. However, I am aware that some banks extend this servioce to other customers from time to time. I know that Abbey have in the past.

You can also have all your personal, business and sole trader accounts under one login .. you cant do this with Natwest

To my knowledge Nat West do provide this service as our online bank accounts are also linked to a personal account. However, they may have changed the rules on this.

To any of you that may be paying charges, there is nothing to stop you moving your accounts around if you are being charged to pay cheques in etc. Operating different accounts can save you money but may not sit comfortably with your own circumstances.

Another consideration is are your clients/customers international? If so some of the smaller banks use agents to process international bank transfers (ie Abbey). This may mean that you have to provide different details to the client depending on the country that they are transfering from. You will find that the larger 'global' banks, for example Nat West and Barclays, provide you with one set of details for all countries.

I hope that some of this helps.

Mike.

[Anonymous]

I would recommend HSBC.

I use them for my business and they couldnt be more helpful, especially when setting up new, they gave so much advice. Plus I used to work for them so basically know how they run.

Tommy
I have just seen this and I have to tell you that I had a row with Lloyds and went to your bank, its the biggest mistake I have ever made!

I made an appointment to see the manager, when I got to the bank he was not there and some young girl dealt with me.

I phoned him later to sort a loan, he asked to see me so made an appointment and went he did not turn up, but rang to say he would sort the loan dont worry.

he never did and would never answer or return calls I could go on perhaps as you worked for them they treat you differently

if you ever have time read Gerald James "in the public interest" its about how he changed a firework company into a multi million pound arms company, it also mentions your bank, not too favourably

I had to eat humble pie and go back to Lloyds, my advice to any new buisness, dont touch HSBC with a bargepole.

[Ozzy]

The problem here, as mentioned at the start, is that its not so much the banks themselves but the individuals you deal with that make the difference.

My personal experiences with Natwest and Barclays are that the people at Natwest were brilliant but were not supported by the organisation (personally it was Streamline that were not on my Christmas card list), and with Barclays the bank itself is great but the people I dealt with are a waste of the oxygen they breathe. However, these people are only at branch level in this case.
Another business I am involved with banks with LloydsTSB and my partner finds that bank fantastic and is always singing their praises. His business manager visits the office once a month without fail asking how things are going and runs through their "route plan".
I've no experience with HSBC so can't comment at all there.
Whoever you bank with, if your turnover is over 1 million have your account managed by the banks corporate division as they are allowed more flexibility in what they can and cannot authorise.

[SillyJokes]

We recently had to open a new account because we changed status to a Ltd company (ozzy does your £40 include opening all the new bank accounts/worldpay accounts/changing all the stationary and replacing my husbands subsequently thinner hair? :wink: ).

We tried all the banks to see who could give the best deal and it was impossible to compare them all due to their differing charging structures.

We plumped for NatWest in the end because there is a local branch. But before that we went back to Barclays and asked them to beat the deal we had been offered.

Considering we have banked with them for 4 years you might have thought they would have jumped at the chance to retain us, but nooooooo. They couldn't help out an old customer. Bye Bye Barclays.

[Ozzy]

Ha Ha @ £40 .... I do actually get asked things like that, hell I'll even through in £10,000 to get you started ;)

I'm actually about to start moving from Barclays myself as not been too impressed with their service and have kept in touch with old Natwest business manager, who is more than happy to help facilitate a move back.

[smokiesue]

:) Hi can anyone over this and tel me where i've gone wrong so i can understand it for my own satisfaction, i just can't work out where i keep going wrong,

If a buisness year ends on the 31Mar 5. when calculating the accrual or (prepayments) for each of the following items,

Rent paid to 31 Dec 4. £1200pa is it a = (300) b= 300 c= 900 d= nil
I thought it was A= 300

Rates paid to 31may 5. £2400pa is it a=(400) b= (800) c= nil d= 300
I thought it was A= (400)

Insurance paid to 30 jun 5. £600 a= nil b= 150 c = (150) d = 300
I thought it was A= Nil

Salaries paid to 28 Feb 5.£12000pa a= nil b= 1000 c= (1500) d= (1000)
I thought it was D = (1000)

Wages paid to 31 Mar 5. £36000pa a= 3000 b= (3000) c= nil d= 6000
I thought it was C = Nil

Select the leger account balance DR or (CR) for each item after reversal of the entries on 1st Apr 5.
Rent a= (300) b= 300 c= 900 d= nil
I thought it was B = 300

Rate a= (400) b= (800) c= nil d= 400
I thought it was C = Nil

Insurance a= nil b = 1000 c = (1500) d = 1000
I thought it was D = 1000

Wages a = 3000 b = (3000) c = nil d = 6000
I thought it was A = 3000

Select the journal entry DR or (CR) to be made in the Nominal ledger to record these accruals and prepayments at 31 Mar 5

Rent a = ( 300) b= 300 c = 900 d = nil
I thought it was A = (300)

Rates a = (400) b = (800) c = nil d = ( 400)
I thought it was D = (400)

Insurance a = nil b = 150 c = (150) d = 300
I thought it was A = Nil

Salaries a = nil b = 1000 c = ( 1500) d = (1000)
I thought it was D = (1000)

Wages a = 3000 b= (3000) c = nil d= 6000
I thought it was C = Nil

I find this accruals and prepayments very confusing, but now im not longer doing this course and I have posted one before and was helped
really well and understood where i had gone wrong, and hope that some one would explane on this so if i ever decide to take the course up again
i will understand this part of it,

Thank you for the help in the past

Sue :cry: :oops:

R

[Ozzy]

Sue, you are probably better off posting this a new message in the forum rather than replying to the bank post. If I could work out how to move your message I would do it for you!

[smokiesue]

Hi Ozzy

Did i post it in the wrong part then!! silly me im sorry, and thank you for letting me know, :-)

[Strategist]

I too bank with and would recommend Bank of Scotland. However, it depends a lot what your business will be doing, e.g. dealing in lots of cash, international transactions etc. If your banking needs are less than straightforward then it is best to look around to ensure that your choice will be right for you long-term. However, you can always add another account later on or switch altogether if you outgrow your original choice.
I hope whoever you choose, you end up with lots of money to bank with them! Good luck.

[smirch]

The relevance of the bank manager is as important or more important than the bank, especially when they include (free)advice ...

but heres a link to help you compare business bank accounts anyway

British Bankers' Association
http://www.moneyfactsonline.co.uk/mfbaf/root.asp

[FlowerPower]

I agree that the advice that you can get from Bank Managers is very important, it's worthwhile finding someone that you're happy and comfortable with.

Like Strategist I also bank with bank of Scotland and would heartily recommend them. At the moment they are offering free business banking without any limits!

[globalart4u]

is there a limit on how much you have to have in teh account to get free unlimited banking?

[Jose]

wharfie,

I agree completelywith wharfie. It took HSBC 6 months to change our business address.

We told them that the structure of the company had changed and that the listed signatories on their system were not part of the company anymore. This was in Dec 2004......guess what! they are still writing to them.

I am going to change our banking strategy and some of the comment above have been extremely helpful.

Thanks
Jose

[maddyminx]

Hi John,

If you're not going to give up your full time job for a while you should try the Royal Bank Of Scotland - you don't need to tell them its for business purposes, just say its an additional current account, seperate from Barclays.

I didn't tell them that I was self employed - I explained that I wanted a new normal current account that wasn't with Barclays and when asked my occupation, I told them I was a mum! I've now got a normal current account for use, along with a free £100 overdraft, chequebook and debit card - ideal if you're only going to be doing part time to begin with.

Hope this helps a bit :)

Maddy
x

[clickprofits]

I tried most of the main high street banks, either by going in myself or applying online - only one even bothered to get back to me, which I thought was appalling. Unfortunately the bank who did get back to me was Royal Bank of Scotland who wasted my time by refusing to open an account as a drivers licence was the only acceptable form of id (I don't drive so i don't have one) and although their website gave contradictory information and said other forms of id were acceptable, they refused to budge and just said that the web site was out of date/wrong and would be changed - it hasn't.

I thought that a Scottish bank might be best as Barclays said that they only had one business manager for the whole of Scotland (!) and she was not in Edinburgh on the day I was in (was told she is only in Edinburgh 2 or 3 days a week but would call me back the next day - nobody ever did call).

Lloyds were excellent when I first started out, but as soon as the business banking manager at that branch moved elsewhere things went downhill very rapidly and have never recovered.

Not sure who else to try as I am running out of options......

[MartinC1970]

It's good to hear all the honest feed back concerning the major Banks and if I was to comment on every good and bad point raised I would be writing for a week!

I will make no secret or apologies that I am a commercial manager at HSBC, and would just add that honesty and transparancy goes a long way. Being surrounded by a great team, supported by some good systems makes working with the SME market both pleasurable and rewarding.

Feel free to ask away if you need another opinion.

[finstar]

At Finstar, we use the Royal Bank of Scotland, now I can't say that it has been without its ups and downs but when we did have a problem with them (long story, I'll spare you all the details), they dealt with our complaint professionally (including a visit from the area manager), and extended our free banking once again.

The best thing I find about their service is that the business banking manager is there if you need them, and you can ignore them if you do not. We have our own in house commercial finance advice team, but still every now and again it is good to get a second opinion.

In terms of other banks, I wouldn't touch any of the ones who don't have in branch business managers, there's nothing worse than needing to speak to a call centre at the other end of the UK (at best!), and on a personal note would not touch Lloyds TSB with Wharfie's bargepole, their business banking is overpriced and sub-standard, and I am more than qualified to say that, because I used to work for them and believe me my opinion was the same while I worked there. Stay away!

[Talkrussian]

Talk Russian banks with Alliance and Leicester Commercial Bank. For most small firms almost all standard transactions are free. We switched from HSBC as their charges were very, very high. Now we pay zero in bank charges.

There are some downsides... no local branches, everything's on-line but you can pay in and withdraw cash at the Post Office.

I am very comfortable with this. Local bank managers and business advisers are, in my oppinion, salesmen in disguise.

If all you are after is a bank account and you can look after yourself, A&L are fine.

Neil McCafferty

[Jayne]

Hi,

I have just opened another business account with Lloyds TSB. Because it is a different business to my other, they gave me 18 mth free banking, the bank manager (who is a lovely man by the way) came to my house with all the forms I needed to sign. He gave me advice on my new business and my new account didn't cost me a penny to open. My account was open the next morning. I also got a free business package too, containing lots of useful info'

Now thats great service :D I would never swap banks now

Jayne

[Anonymous]

John,
sorry to hear about your experiences with Barclays, but I would have to agree with a few posts that it is your Bank Manager that you should buy into and not the bank.
I work for Barclays as a Business Manager and I try to help my start ups as much as possible.
Yes you could go to Abbey and HBOS but other than a counter service what do you get? they have very little Business Managers in branch and when you need the support they are not there.
feel free to chat to me about this.

[Hayles]

We use Royal Bank of Scotland and HSBC.

Sorry, but no good points with RBS. Business manager who instils no confidence whatsoever, the bank shuts for lunch (!), manager covers several branches so never available...

HSBC - the staff have been excellent. We chose them because of our first business manager who has unfortunately moved on (but we do still call her for advice). However, BIG BIG moan is their call centre. Used to be great, could speak to someone who understood english and knew what we were talking about. Now we get an Indian call centre 90% of the time and it is just so frustrating!! I had to explain three times recently that I didn't want the guy to repeat information on cheque payments, I wanted to know about CHAPS payments. I wouldn't now recommend HSBC simply because of this part of the service.

Hayles

[Shelley]

Im with HSBC and have found them so helpful.

It goes back to what the guy said previously, definetly depends on the business banking manager.
They couldnt have helped me anymore.

[Hedgehog Toys]

We have just opened an account with Lloyds TSB, they were great , very efficient, friendly and local..... :lol:

[Claire B]

I get free business banking with the CO-OP, via the Federation of Small Business. I can nominate my local post office too which really helps with paying in cheques etc.

I think the free business banking alone is worth the membership fee of the FSB

[fastfences]

I get free business banking with the CO-OP, via the Federation of Small Business.


Quite an incentive!! I just joined FSB and am now deciding whether to 'divorce' HSBC (which has been extremely good to me) or not :?
Cheers, Nigel

[Claire B]

I'm getting on really well with them Nigel, their phone banking and telephone support is excellent! So raspberries to Nat West!

[Grizza]

Royal Bank of Scotland are very good, an LloydsTSB offer 18 months free banking.

[Sandy]

When I was in the same situation last year, I shopped around. The advantages to each bank were so comparible that I based my judgement on the standard of support and friendliness of the people.
I went with Lloyds TSB.....I'm very happy with them.

[britanyastudios]

I am with abbey, they offer free forever banking. They are generally very good, and I havent had any problems with them at all.

Tanya

[VeryMark]

I've found Whiteaway Laidlaw bank, part of GUS, to be the most helpful and friendly. No call centre, you can speak to a real bank manger when you want to, and you don't get sold insurance, mortgages and all the other stuff most bank try to push at you!

[hend]

Hi,

Could some body Help me please, I need some informations about the UAE banks.
Thank you

[ADP]

Hi

Firstly I wouldn't recommend Alliance & Leicester - though free banking there are certain limited on this and having known a client who has recently switched to them, they made an absolute mess of the transfer - also bit of a pain paying in as has to be done at a post office (like most banks you can probably gain entry after hours to deposit at any normal bank)

If you're looking at RBS they have a huge amount of paperwork to fill in before you even start - though their terms are very appealing.

HSBC do offer good deals, but you really need to check out their terms as they will still charge for some things.

Lloyds TSB seem to offer a great service - 18 mths I think -as well as free bookkeeping software.

Hope thats a few ideas

Pauline

ADP accounting

[gaz2373]

If you become a member of the FSB CO Operative bank offer life time free business banking and pay you £25 per year to use them. Sorry if this has already been posted but I did not notice on a quick read through.

[FONOPromotions]

I used alliance and leicester commercial bank as a new start up. I can't comment on transfering to them, but have been with them now for over a year and haven't been charged a single penny for anything.

John
FONO Promotions

[fumse]

Hello,

I am thinking of opening an HSBC business account , they have a new one now called Business Direct.

Its for businesses with an annual turnover below £500,000.

Almost everything that Business accounts charge for , is free , they only charge 50p after you have paid in 30 cheques a month.

and the huge negative is they charge on cash 2% of value deposited or withdrawn in branch.

Cash machine withdrawals is free.

If your business does not rely heavily on you depositing and withdrawing cash , maybe they'll be okay.

Does anyone have experience of the Business direct from HSBC?


best wishes,

funmi

PS : you can enjoy the 18 months free banking for a normal HSBC business account then switch over to Business Direct.

[JOHNAF]

Whatever you do , do not use Nat West
We have a client who applied 6 weeks ago and he still does'nt know if he can open a bank account with them!!

[Lisette]

I have two limited companies. The first I bank with HSBC. I had a great business account person who helped me set up (I did not have a clue). They gave 12 months free banking. He has left and the replacement not nearly as good. I use the internet banking which was a total pain to set up but staff very helpful and it now works. But the free banking has just run out so I am probably going to have to move!

The second I set up with Abbey. I had a business partner who was going to do the banking and it was his choice [no longer have the business partner but have the bank!]. They are a bid lower grade but give you lifetime free banking which is good. The set up was hopeless - we went to the banch - they took the forms and posted them for us - so do it on line. I find the telephone banking people really nice and helpful and they answer quickly. Not yet got the internet banking set up.

On balance I would go for one that gives you the best deal - longest free banking etc - unless you think you need a lot of help in which case go for one that has a good business banking service and a big branch near you and 12 months free banking (you can always shop around later)

[Stephen Berry]

I agree with the comment above that the manager is more important than the bank. We had a great bank manager at HSBC (Windsor, UK) until the bank decided to remove managers and put me through to call centres who did not know me from Adam.
We left HSBC and went to Bank of Scotland (3 companies) - and as all are with the same manager (Pauline Phillips - Business Accounts, 600 Gorgie Rd, Edinburgh - even though we are near London) - the relationship has been excellent.
Perhaps a local business networking event would be useful for you to meet the person rather than the company.

[kimmrunner]

Sadly all of the main banks now treat managers as fact finders, but divorce any decision on funding or limits to a faceless and uncontactable "underwriting team" - never was it more important than now, to have the right stuff on page one of your business plan! - and to have a completely different plan for the bank from investors...

[andrewpurnellUK]

Have you looked at Alliance & Leicester....Only draw back is that it requires £1000 deposit per month to qualify for free banking...but otherwise good service.

HSBC were offering 18 months free banking, but now down to 12 months

[andrewpurnellUK]

Have you looked at Alliance & Leicester....Only draw back is that it requires £1000 deposit per month to qualify for free banking...but otherwise good service.

HSBC were offering 18 months free banking, but now down to 12 months

andrew

[Miranda]

HSBC - the staff have been excellent. We chose them because of our first business manager who has unfortunately moved on (but we do still call her for advice). However, BIG BIG moan is their call centre. Used to be great, could speak to someone who understood english and knew what we were talking about. Now we get an Indian call centre 90% of the time and it is just so frustrating!!


Ask in your local branch for the direct line of your local business manager, and avoid India. We have stayed with HSBC for 7 years (strayed the odd time but the local business managers lure me back with free banking as have current a/c with them). For now I use mainly internet banking and it's virtually free of charges unless I dip into overdraft.

[ElliotClark]

I use two accounts: a normal (onshore) and an offshore one. Both of them are from HSBC. I have been using it for 9 years already and I am fully content with the service and fees. Besides it gives me additional flexibility: I can always move some cash between onshore and offshore banking accounts without much effort.

[ElliotClark]

I have tried at least seven offshore banking (http://www.offshorebankingtoday.com) centers and their offshore accounts, but I found Jersey account as the most flexible and secure.

[BevT]

Abbey - cannot recommend them. Nothing but trouble over last 2 years with them. Now going to try A&L.

[curadebt_fees]

I have my account in HSBC, it provides good facilities to businessmen.