The factors that should be taken into account to open a bank account for a startup business can differ quite significantly from what needs to be done for established companies.
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There are some essential features, and having a clear picture from the very beginning can make a great difference.
- How streamlined is the process of opening an account?
- Fees and interest charges are the most important long-term measure of a bank’s suitability. Some banks offer free introductory plans for an initial period, like 12-18 months, but then escalate
- the levels of fees dramatically. Make sure that the whole picture is spelled out before committing.
Are the bank interfaces hard to use?
- Is the bank providing rapid ways to send/receive funds?
- As far as possible, your day-to-day dealing with all aspects of banking should be online – paperwork is painful, slow, and expensive.
In most cases, the best business account for startups will be a regular account that can offer the most basic facilities, such as minimal fees and operating costs, direct interface with an employee payment system using prepaid debit cards and allowing for prepaid cards for travel, accommodation and expense accounts. In the end, the closer you can get to a paper-free, low-charge banking operation, the better.
High-street banks provide the widest range of products to meet the needs of companies of all sizes and across all industries, but sometimes this comes at higher cost and with less flexible interfaces. Many of the banking products on offer may appear in the beginning to be redundant, but as business grows in size and complexity, they could be essential.
EMI business accounts are all digital, and the registration process can be quick and simple. Typically, they feature innovative solutions which can make it easy to manage business finances, including connection to your own accounting software. It’s the way towards borderless banking, ideal for companies that need to conduct international transactions.
How to choose a Business Bank Account
Most important when deciding how to choose a business bank account is to discuss fully and openly with the bank how they can help you. Choose a few banks after doing some investigations, give each one a comprehensive description of what your business will be doing, what the revenue pattern will, and all of the services you plan on using. Get back from each bank an answer of what they will be offering in terms of services, and how much they will be charging. Just make sure of two things – don’t automatically go for the lowest cost bank – it may have some unknown reason for needing your business – and don’t hide from the banks that they are not your only option. Keep them competitive so that you get the best deal for yourself, not for them.