Who's good for business banking accounts?

[okonaut]

I need to set up accounts for a new venture. My main business is with Lloyds, who's online interface is now pretty good, generally runs without too much fuss, but hammer us on charges. I could just go with lloyds again, but thought it might be a good opportunity to see if there anyone better out there.

Requirements are fairly simple at this time:

• 12-18 months free business banking for startups
• Online interface that won't drive me mad (and allows me to deal with day to day stuff without carrying another 2fa calculator around everywhere)
• Aren't horrifically painful in other ways
• Ideally also good with foreign currency accounts, although I could have that seperate

Any recommendations? (either to go with or to avoid!)? Thanks

 

[Paul Norman]

I am with Lloyds, who don't hammer me with charges, so I was going to say them.

I bet there is not much to choose between the main players, so why not try some of the newer players on the market? Santander? Metro Bank? I have no experience of them, but you will get people to say nice things, and nasty things, about every player in this market.

 

[Mr D]

Santander, low fixed monthly charge after initial 12 months free.
Online I'm looking at transactions, balance and paying some bills - they are fine for that.

 

[heidi hine]

Most of the high street banks offer ‘free business banking’ to new companies, for periods of up to 24 months in some cases. It is important to find out what costs will be applied once your initial banking period expires, as most day-to-day business accounts charge per transaction, or apply a monthly standing charge.

In my opinion Satander is one of the best options out there, you can apply online and should have it up and running with 10 working days.

If you are looking for a SUPER quick turnaround, go with TIDE.

Hope this helps!

 

[DontAsk]

Santander, low fixed monthly charge after initial 12 months free.
Online I'm looking at transactions, balance and paying some bills - they are fine for that.

Seconded. Came to them through their take over of Alliance & Leicester and have had no reason to complain.

 

[dotcomdude]

We just switched our existing business to Yorkshire Bank to get away from the TSB banking issues and to be 'rewarded' with 2 years free banking.

The whole process turned out to be a real headache, because their online application process didn't work properly and they couldn't get online banking to work for us.

In the end they switched the account and left us unable to make any payments, see any transactions in/out or even our balances for about a week - which should be unheard of in this day and age!

I've come to the conclusion that the IT in some of these large organisations isn't up to the job...

 

[Mr D]

We just switched our existing business to Yorkshire Bank to get away from the TSB banking issues and to be 'rewarded' with 2 years free banking.

The whole process turned out to be a real headache, because their online application process didn't work properly and they couldn't get online banking to work for us.

In the end they switched the account and left us unable to make any payments, see any transactions in/out or even our balances for about a week - which should be unheard of in this day and age!

I've come to the conclusion that the IT in some of these large organisations isn't up to the job...

Yes, some of the comments on a thread months ago regarding the banks IT suggested its trying to fit 60s / 70s / 80s legacy computer system elements into modern systems. Wasn't that long back that we had to wait for a cheque to clear in a few days before could spend the money - that was still being done with procedures from decades ago this century.

 

[Ashley_Price]

As others have already said, try Santander.

I have been with them since they bought out Abbey National (which was where my account was originally) and have been almost completely happy.

I say "almost" because they did close my local branch which has made it harder when it comes to paying in the occasional cheque we still receive, but otherwise have never really had a problem.

 

[The Byre]

Santander - but not for foreign currencies.

Go to a Luxembourg or Irish on-line bank for foreign currencies.

 

[Bob Morgan]

Wasn't that long back that we had to wait for a cheque to clear in a few days before could spend the money - that was still being done with procedures from decades ago this century.

Far longer than that Mr D! It goes back to the Bills of Exchange Act of 1882, and the 3 Day Clearance Period goes back even further! – The allowance of three Days was made for a Cheque to be 'Walked' across London (Payee's Bank to Drawer's Bank and Back again), in the days when a Bank Head Office was a Coffee Shop! – Try doing that in Starbucks today! It also gave rise to that time honoured expression 'Refer to Drawer!'

Although now regarded as rather ‘Old Hat’ in the UK and Europe, Cheques are still a way of life in the Middle East and SE Asia. The GCC Gulf States also use Post-Dated Cheques as a form of Sharia Compliant Credit – A Two Year Car loan still requires writing 24 Cheques, some banks will use 24 Direct Debits, but DDs are purely for Internal Bank Transactions. ‘Bouncing a Cheque’ in the Gulf Countries will earn you ‘Jail Time’ and it is enforced across GCC Borders! - It does however, tend to ‘Concentrate Minds’ when Cheques are presented for payment, and is used extensively as ‘Leverage’ for payment.

 

[Socio South West]

After many years with Twat West, I found they have caught the 'computer says no' syndrome - even when a simple admin error had been made that they refused to acknowledge. I also felt all their staff were becoming salesman and not people employed to help businesses with their banking, and they were armed with instructions to hide behind a 'its all part of the service that we have to go through with you' to expose you to each product they wish to sell.

I recently set up a new account with Santander which has been a bit of a tree killing exercise in terms of mail received and pages of gobbledigook, but straighforward online banking seems to be working fine for me.

 

[Socio South West]

Although now regarded as rather ‘Old Hat’ in the UK and Europe, Cheques are still a way of life in the Middle East and SE Asia.

Cheques are still extremely good currency in France, where the laws on bouncing cheques and associated penalties are far less favourable than they are in the UK

 

[okonaut]

Thanks all - much appreciated. Sounds like I should be looking a Santander then. I'll give them a shot.

 

[UrbanRetail]

Has no one used any of the new online banks?

 

[okonaut]

Not bowled over by Santander so far, but we'll see if they improve after the application process. Particularly unimpressed by being asked to send scans of confidential documents by plain, insecure email (privacy and GDPR be damned!)

Has no one used any of the new online banks?

I'd be interested to hear experiences of these too.

 

[Deleted member 59730]

I have online accounts with the Coop who provide free business banking for FSB members. They use UK based phone centres with friendly Skemersdale accents.

 

[paulears]

The thing I like about Santander is the on-line system. So much more friendly and easier to use than Barclays - no gizmo and codes. Always been helpful on the phone.

 

[tasmanialtd]

@UrbanRetail..which "new online banks do you mean"?
Please elaborate.

 

[Supercoach]

Has no one used any of the new online banks?

Starling Bank now offer a business account via smartphone app - super easy to operate.
Every payment in and out of the account gets you an immediate text message - love it

 

[Diesel]

Counting Up is getting its product ready and will also be an accounting package as well as a bank account - why should we need two separate ones.... Its about £15 a month which seems better value than old fashioned banks + an accounting app. I am a little wary of 'pay forever' models though as they can hike the charges at any time once they have locked you in.

 

[Diesel]

Starling Bank now offer a business account via smartphone app - super easy to operate.
Every payment in and out of the account gets you an immediate text message - love it

This looks great for a very small business! No fees and very interactive. I remember asking HSBC for a £1500 overdraft once and the arrangement fee alone ensured I used a credit card instead. This account seems a lot more modern and up to date.

 

[KateCB]

We have an online only account with HSBC as we do not take cash, or need cash and everything is paid to us via BACS/Internet transfer and paid out the same way. We are charged £5.50 a month for the account, that's it - nothing else. The downside is if you want to pay cash into the account (we don't, so not a problem) you are charged a fee per £100 paid in, and they are still working on the mobile app - not sure, but I THINK you need the keypad....I don't use the mobile app, so you would have to check that one out. The online interface is being upgraded, it works well - worth a look.

 

[Diesel]

You do pay for ATM withdrawals Kate and a (annual?) fee for overdraft arranging, and really, as they have closed the branch around the corner that made us choose them in the first place they have no advantage over the newer better challenger offerings. They are also giving people hell with excessively intrusive ID checks for longstanding customers and if you don't tell them your world they just cancel your account with no recourse!

 

[KateCB]

I have just spent some time looking at starling bank and if they offered multi director company accounts I would be there like a shot - if you are a sole trader or single director company, then the account does look like gold

 

[KateCB]

You do pay for ATM withdrawals Kate and a (annual?) fee for overdraft arranging, and really, as they have closed the branch around the corner that made us choose them in the first place they have no advantage over the newer better challenger offerings. They are also giving people hell with excessively intrusive ID checks for longstanding customers and if you don't tell them your world they just cancel your account with no recourse!

We don't use cash - at all... so the ATM withdrawal never bothered us; we don't have an overdraft so that doesn't bother us either and we don't use their business credit card - it suits us for now, but as I have just posted, the new Starling Bank looks ideal for sole/single director companies - I have registered interest in them contacting me when they are able to offer multi director company accounts too

Just thought though, I have just finished the online 'war and peace' ID check and then got a phone call to clarify things! I must admit, they are rather intrusive, long winded and I am not sure if they are really necessary - but not knowing the industry are they the leaders in ensuring Money laundering is not occurring through their bank? Will other banks follow suit? I have no idea.

 

[ruby123]

What experience does anyone have with lending, overdrafts etc with business banks.
Assume all similar but do any seem more able to lend than others or offer better cost of borrowing?
Liking the look of Santander but does anyone have experience of overdrafts etc with them

 

[Mr D]

What experience does anyone have with lending, overdrafts etc with business banks.
Assume all similar but do any seem more able to lend than others or offer better cost of borrowing?
Liking the look of Santander but does anyone have experience of overdrafts etc with them

Natwest - poor experience with their business banking staff. Offered me an overdraft, initially thought OK maybe useful.
So agreed to that - then they became very confused about figures. Profit and turnover are quite different to us, the person I spoke to appeared baffled by both terms and figures they entered bore little relation to what I had given.

I now bank with Santander, not tried their business credit facilities yet. Too early for me.

 

[TheoNe]

I would seriously consider going with a Starling Bank Business Account - no monthly fees for startups, comes with a user-friendly interface you can access from an app on your smartphone anywhere in the world & has fantastic foreign currency rates.

You can check them out here: https://www.starlingbank.com/campai..._cpc&utm_campaign=affiliate&utm_term=business

I hope this helps.

 

[ruby123]

Cheers I will take a look, has anyone experience of borrowing from starling?

 

[glengraving]

I recently switched from Santander to RBS for my personal banking (because my local branch was closing and RBS had a £175 joining bonus).

Will need to open a business account soon though, and don't fancy RBS's fees, so will shop around.
How do small businesses who depend on cash deal with branches closing? Post Office?

 

[Victoria_V]

If you prefer online banks to the traditional brick and mortar banks, there are many options to choose from. Most of 'challenger' banks have free trial period so you can test it out and see how you feel about the interface, the customer support, the pricing, etc.

 

[Strent12]

Lloyds is a good choice, barclays definitely not as they have other accounts for foreign currency with charges and are a pain in the neck.

Depending on what you use for finance i.e. xero check that it can link up to it so you can get your bank transactions into your finance software and therefore easily reconcile transactions.

Very important as vat return is like everything all going online.

 

[Mr D]

I recently switched from Santander to RBS for my personal banking (because my local branch was closing and RBS had a £175 joining bonus).

Will need to open a business account soon though, and don't fancy RBS's fees, so will shop around.
How do small businesses who depend on cash deal with branches closing? Post Office?

Have several times used Natwest (where wife still has an account) to get change for an event.
Using personal money from personal account, they really are not happy providing change and keep trying to insist we open a business account with them (and of course be charged more in fees).
This is for us doing a personal table at a tabletop sale or local event - not a business at all.

The last time I used Santander for business cash for a business event, I used the branch I was near rather than my local branch. Had to show ID and they wanted me to show a business letter too - which I didn't have on me.
Grumbled but gave me the £60 in pound coins.

 

[Mark T Jones]

What experience does anyone have with lending, overdrafts etc with business banks.
Assume all similar but do any seem more able to lend than others or offer better cost of borrowing?
Liking the look of Santander but does anyone have experience of overdrafts etc with them

With respect this is a bad question which will lead to either meaningless or misleading answers

The experience of any business owner of borrowing money will be the result of many factors which possible aren’t relevant to you

Some such factors are:

1. Economic climate. In 2007, pretty much any start up could wander into a.bank and wander out again with a £5k overdraft. In 2009, nobody could. We are currently moving slightly into cautious mode again.
2. Market sector. Restaurants and retail will currently see some resistance to lending. That said, many of my clients are start up restaurants, but they do have to meet some criteria to get me off my arse.
3. Appropriateness/purpose. Securing funding for income producing assets, or to fulfil confirmed orders will be easier than getting a loan for ‘marketing’ or ‘business development’
4. ABOVE ALL a compelling business proposition with facts and evidence, as opposed to a waffly fanciful business plan