When it comes to the day-to-day running of your business, the financial product that you need to be most comfortable and happy with is your business account. You need it to be quick, convenient, flexible and, if possible, cheap. But you also want the relationship you build with your bank to be useful in the future, when you might want other products such as insurance, a business deposit account, a business loan or a commercial mortgage.
So even more than with your personal finances, the relationship you have with your bank is key. Selecting your business account is about much more than just the introductory offers or interest rate. These tips will help guide you to choosing your business account.
Shop around. A bank that caters to your personal finance needs might not be the most suitable for business clients so it’s important to shop around. More than the obvious variables of interest rates, fees, charges, etc., the bank that makes you feel comfortable, and has the infrastructure in place to support your business is going to be the best option.
Fees. Some banks will charge you a fee every month or quarter for banking with them. This standing charge may replace transaction charges, or it may be on top of them. So when comparing accounts look at any standing charges alongside transaction charges.
Transaction charges are the fees the bank charges for handling credits and debits. These charges may be made on physical transactions, such as paying in cash or processing a check payment, but also for automated payments. Finding an account that allows you to make the transactions you need to make as cost-effectively as possible is crucial.
Location. You don’t need to be told that if your bank is a fair distance away from your business, you’re going to need to think about the practicalities. If you run a shop, is it going to be easy to make a deposit? When you visit the bank manager or small business team, are you going to need to take a week off just to get there? Even with the advent of the internet, location should still play an important part in your decision.
Standard Bank believes that managing your money should be as easy and secure as possible. That is why we offer simple and convenient business checking accounts.