mikenovak started this topic @ 11:18 on 17/11/2006
Just starting a small business as a 'sole trader' status and wondered whether anyone could recommend the best deal for a small business account where I can allow payments via direct-debits, cheques etc?
It would be nice to get free banking - either for a period (say 18 months or more), but preferably permenantly if possible?
Appreciate your help
Mike
RE: Business bank account
James Smith | 17/11/2006 11:50 AM
There are several postal/internet accounts you could use but these wont be suitable if you need to pay in cash at a branch:
Abbey
A&L
RBS
HSBC direct banking
I think all of the above are free if you stay within transaction limits which are quite generous for a new business.
These accounts aren’t generally so hot if you need overdrafts and other facilities or you like to go in personally (I avoid it wherever possible myself!) when you may need to switch to a branch based bank.
Hope this helps,
Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: Business bank account
mikenovak | 17/11/2006 12:20 PM
James
Thanks for the info - do you know of any normal account (i.e. high st) that offer the same facilities, but with personal visits?
Thanks
Mike
RE: Business bank account
James Smith | 17/11/2006 12:29 PM
If you want to bank in person you bascially have to pay for the service in fees.
ALL the banks will offer you 18 months free banking - after that they will squeeze you hard.
As I personally don’t deal in cash (mainly direct bank transfers and the odd cheque) I find using an internet/postal accounts is great. Beats having to pay someone to go to the bank every day!
Depends what you are doing what would be suitable. If you are in retail and are forced to bank takings then all the banks are pretty much the same - its luck of the draw how good your local one is.
NB I think the A&L account is somewhat more “grown up” than the Abbey one which is just really very basic banking but still good enough for many businesses.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: Business bank account
mikenovak | 17/11/2006 12:39 PM
James
Thanks once again for your help - it's been very much appreciated.
I did think that as the majority of payments I will receive will probably be via cheque, direct debit or credit-card payments (as soon as I have merchant facilities setup) once the business is established, any cash payments could then be placed into my normal bank account then transfered over to the internet account.
Kind regards
Mike
RE: RE: Business bank account
chris2006 | 17/11/2006 11:33 PM
Hi
in my own opioin. i think acount managers are only after 1 thing. There own sales targets! These people are under massive pressure from their managers, and from there managers etc to deliver results. At the end of the day, they are in business like us.... need to make profit.. Its their job.
Which brings me to the conclusion, are there people selling us something that we may find useful, money saving etc? or is it useless? do i want it? REALLY? are they selling it because they think we may need it, or because they need the figures to make up there targets????
RE: Business bank account
atrip2.co.uk | 18/11/2006 01:52 PM
I believe that the Bank Of Scotland (Halifax) are giving businesses a good deal. They will give you £500 if they cant beat your current businesses banking deal.
However, Barclays offer a better aftercare service and offer more help.
Just a little note.
Regards
Mike
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Mike Starkey
(www.atrip2.co.uk">href="http://www.atrip2.co.uk">www.atrip2.co.uk)
RE: RE: Business bank account
Strider81 | 19/11/2006 07:31 PM
HSBC provide a Business Direct Account with little or no fees if your business does not involve cash.
Second to that you will be entitled to walk into any branch especially your home branch and see a small business advsior which Abbey or A&L will not be able to offer.
HSBC know that business accounts are extremely valuable to them and thus if you cannot see a business advisor you will have a direct contact number and they will be obliged to get back to you.
RE: Business bank account
DirectDebits | 19/11/2006 11:20 PM
Hi Mike
I'm sorry but having read the previous replies to your post I have to say that they reflect the common misconception that Direct Debits work like Standing Orders - they don't! The are a function of the BACS (Bankers Automated Clearance System), and are accessed normally by sponsorship from the banks. Unfortunately, however, you'll find that the Banks will not allow you access to Direct Debit Origination! Why? They are constrained by two important factors - they don't take risks and they are there to make a profit.
However, I run (and originated!) a business that is unique in the UK in that we are able to get business like yours Direct Debits (and Merchant Account service - Credit Card Colelctions). How? Well we are currently the sole duly appointed Introducer of such business to a long term player in Direct Debit collections. Have a look at our website (available via my profile) - if you want clear unbiased advice drop me an eMail and I'll gladly help.
Tim
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Remember: Turnover is Vanity, Profit is Sanity BUT Cashflow is Reality! We are unique in that we can provide access to the collection of cash by Direct Debit to all sizes of businesses even new starts. We help business claim back control of their cashflow from their customers and pull it back into the business where it belongs. Check us out - we're here to help. 0870 747 0800
