Ash,
I have written an e-book entitled The Secrets of Getting Your Bank Manager to Say Yes! which is in the final stages of editing. Here is an extract covering what you need to know.
If you want to be on the announcement list when its released in a few weeks, either drop me a p.m. or just sign up for the newsletter featured on my site.
Sorry the post is so long but it should answer most of your questions!
With competition increasing you can get some good deals if you are prepared to shop around. Also, dont pass over the Banks which offer only telephone or Internet Banking for small businesses. If you operate a very small and simple business then an Internet only Bank account may be right for you.
So where should you look and what criteria should you use when searching for a Bank?
Your Existing Bank
If the Bank where you have your personal account offers business banking facilities then this may be a good place to start. You already know their level of service (good or bad!), the layout of the branch and perhaps some of the staff if you are lucky! This can make the whole process of opening a new account much easier.
But dont open your business account at the same Bank just because it will be less hassle. You must still ensure that the services which go with the business account are what you are looking for and at the right cost. In a moment we will consider what you should be looking for.
A New Bank
Even if you have a good relationship with the Bank that has your personal account, dont discount looking around. One reason to consider opening your business account at a different Bank is that of total separation between the two aspects of your life your business and personal life.
Consider whether you want one institution to have complete control of your business and personal finances. If you do go through a sticky patch in the business, would you feel comfortable with the Bank seeing what you have sitting on your savings account?
Location
If you have no preference for a particular Bank, location of your Branch may be more of a priority, especially if you will be paying in a lot of cash where a bank just around the corner would be useful.
Some businesses have very simple needs when it comes to banking. If you dont handle cash or large volumes of cheques and are happy banking over the telephone or Internet then location is obviously less of an issue! But be mindful that the lack of a real person to talk to could be a frustration when you have a major problem to sort out.
Matt McGrandles of COS Media Limited, a media business based in Stirling Scotland, says, My advice to any person is to get a Bank that allows a face-to-face relationship. This adds to the building of not only a business relationship but also a potential friendship.
Go Hunting
If you have no particular Bank in mind, or you are only interested in getting the very best deal, visit as many as you can so you can make an informed choice. Ask to speak to the Small Business Manager or Advisor (each Bank has their own job title). Tell them you are interested in opening a Business account and that you are looking for information.
The good ones will spend time with you, offer you brochures, talk you through the process and the leaflets and tell you about their range of services. How you are treated at this early stage will give you a good idea of how you are likely to be treated later on.
Now is the chance for you to get to know about what services and benefits they can offer your business. Ask questions such as:
Do they offer on-line banking or telephone banking?
Will you have a named point of contact? Or will you be put through to the dreaded Call Centre?
At what point will you be able to apply for overdrafts or loans and what are the standard terms?
Do they provide help and support?
What are the charges to operate the account?
If you decide to open an account with them, what information such as ID or application forms will they need from you to open the account?
Do they offer an opening incentive such as 12 to 18 months free banking?
Could You Do Business With Them?
Once you have done all your research take some time to assess all the information you have gathered. Which Bank offered you the best deal? Which Bank is the most convenient? Which Bank offered the services or products most suitable to your circumstances?
I have not mentioned probably the most important aspect for many business people the person who is going to be looking after you; your point of contact to sort out the things that will go wrong! Ask yourself whether you could get along with him or her. A good relationship with your Banker is important, something we will cover in more depth later on.
Ts Oyunjargal, who is a Business Consultant in Mongolia (yes, Small Business Success has subscribers from all over the world!) says there are 3 key things he looks for in his Bank Manager, When looking for a Bank Manager, I want these qualities: good customer service, a willingness to listen, and of course co-operation.
Life coach Debbie Whiteley-Grant says I feel that a face-to-face meeting with your prospective Bank Manager is the best. Find a Bank that views you as an individual and doesnt just work from a blueprint.
So, based on all your findings, which Bank stands out head and shoulders above the rest? Which one did you feet most comfortable with? Make an informed decision based on all the information you have gathered and then move on to the next stage which is actually opening your account.
Opening a Bank Account
Having made your decision on which Bank to choose, go back or call up to arrange an appointment to start the account opening process. Seeking out an appointment is not only the best way to manage your time (who wants to waste valuable hours sitting around waiting in a queue?) but it also starts your relationship off on a professional basis. What kind of impression will you create if you turn up on the doorstep totally unannounced?
Items You Will Need
As with most processes today, Im afraid you are going to need a stack of papers to get the process started! Here is some of the documentation you are likely to need to open your account:
1. a completed application form (usually filled in during the meeting)
2. identification such as a Passport or Driving Licence
3. 2 utility bills to confirm your address
4. if you are a partnership each of the partners will have to supply the above information
5. if you are trading via a Limited Company you will need the Memorandum and Articles of Association and Certificate of Incorporation
6. a Bank Mandate form (supplied by the Bank) showing a specimen signature and confirming who is to sign for Partnerships and Limited Companies
7. possibly a copy of your stationery or letterhead if you have got that far
8. anything else you can think of which will confirm you are in business
9. an outline of your business which can be in the form of a Business Plan"
Phew
.. Im off for a coffee!!
