Business Bank Accounts- Help please!

[AbbieMedia]

Hello everyone!
I'm in the process of starting a marketing/PR/media management type business, and I was wondering what your best advice was when it comes to choosing a business account? I am a total novice when it comes to all things banker (but I am quick learner!)

I can't imagine we'll be ever be making huge sums of money (eventually aiming for around £100,000 turnover), and I'd like to keep a savings account with the same bank- unless theres a good reason not to!

I will need access to internet banking, and debit/credit cards.

Having a quick look online, it looks as though Cashplus offer a business account with the lowest fee I can find, but they don't offer international transfers, take cheques, and it seems like the only place I can go in person is the Post Office...

So, actually, I have two questions:
1. What is your best advice for a total novice in the world of banking, looking to set up a business account?

and
2. Do you have any recommendations (to go to or stay away from!) of banks/businesses to use?

I'll probably be back with lots of other silly questions, but just want to get as much right as possible!

 

[arnydnxluk]

1. If you're only making electronic transactions then most of the banks offer the same functionality with a monthly fee of around £5/month. It's just like opening a personal account really. If you don't require any particular feature then I'd just go for the bank which offers the best online banking, less time dealing with customer service!

2. I can recommend HSBC but contrary to my previous point, their online banking isn't amazing, although it does get the job done. They offer integration with some accounting systems, Xero and I think Sage Online, it's handy to have automatic feeds without having to share login details!

Starling is interesting - a modern bank with completely free business banking. It only takes about 10 minutes to open an account. The huge problem with Starling (for me anyway) is a lack of desktop online banking (they're mobile only) and a limit of one account. Hopefully they will have those issues resolved soon, they're certainly moving quickly.

I think NatWest have a promotion where you have a free subscription to FreeAgent while banking with them. This could be worth looking at if you were thinking of using FreeAgent as your accounting system.

As for credit cards, most will charge an annual fee. However Barclaycard offer a free business credit card. The Amex gold charge card is also worth looking at if / when you have lots of expenses (there is an annual fee for this card).

 

[AbbieMedia]

Ooh thanks Mike!

I'll definitely have a look at HSBC as it's likely we'll be using Sage as we can qualify for some free/reduced software (I think- wasn't able to be at that meeting so need to confirm!), but will also look at NatWest and FreeAgent.

Is there a way to check which banks work with which software? Other than speaking directly with them at first as it would be useful to use as a filter almost.

 

[arnydnxluk]

I don't think so - you would just have to check with each software vendor.

I'm not too familiar with Sage but they do have a page listing compatible banks for one of their products here:

http://ask.sage.co.uk/scripts/ask.cfg/php.exe/enduser/std_adp.php?p_faqid=33889

It looks like they have direct feeds for NatWest, HSBC and Lloyds. They do support feeds for other banks but those will almost certainly require you to hand over login details and / or manually run the feed from time to time (this is done through a service called 'Yodlee'), where as the direct feeds integrate securely with your bank.

 

[jf-financial]

As per previous poster it is worth considering Natwest as they'll give you a free FreeAgent license - also quite a few of our recent clients seem to be going with Tide

 

[jeanpierre121]

I use Tide and it's great for basic business banking and integrates into Xero really well. You will outgrow it when your balances reach in excess of £100,000

 

[tasmanialtd]

Any other similar online banks like TIDE for businesses?

 

[The Byre]

There is no such thing as one bank that does it all. Even at low turnover rates, if you are aiming at an international clientele, you will need accounts outside the UK. That way you can make and receive payments in dollars and Euros instantly and without massive fees and delays.

 

[Raw Rob]

but they don't offer international transfers

Generally it's cheaper to use a separate company to make international transfers, I use TransferWise, so much cheaper than the mainstream banks.