When launching a new business, it’s important to make sure that you have a secure, separate bank account to store any business capital and future profits. Your business bank account will also help you ensure that any company expenses are kept separate from your personal spending, making it easier to keep your finances under control. But, with so many different options to choose from, picking out the right business account for your needs is no easy feat.
We’ve listed some of the main features to look out for or avoid when choosing a business bank account.
1. Look Out For Fraud Protection
One of the first things that you’ll need to ensure when selecting a business bank account is a high level of fraud protection. The last thing that you want is for your bank to be unable to help you very much if you are a victim of hacking, theft, or other unauthorized charges. If this happens, you need to be able to rely on your bank to act quickly to recover any missing funds and secure your account from anyone who may have unauthorized access to it.
2. Avoid: Big High Street Banks
Although there are many success stories of entrepreneurs who’ve managed to get a business loan from a high street bank, bear in mind that there are many more who are rejected. Today, the high street banks have been increasingly tightening their purse strings when it comes to who they lend to, and only those with the best possible credit histories and a profitable business idea are likely to succeed. Instead, consider smaller, community banks, which provide a more personal service and are a more likely to invest in small business owners.
3. Look Out For: Low or No Fees
Today, bank accounts that charge a monthly fee for their use are widespread, and often popular due to the range of perks and extras that come as a result of paying the fee. However, when it comes to choosing a business bank account, be careful of any monthly or additional fees that you could have avoided. If a monthly paid bank account is offering a range of business perks and rewards, ensure that they’ll be useful for you – if not, a free account with the same basic features might be the best bank for you. You should also be careful when it comes to additional fees and charges – for example, look out for accounts that charge if the account goes under a certain balance. Unpaid transaction fees are included with almost all accounts, so make sure that you know the terms and conditions surrounding these.
4. Avoid: Bad Reputation
Lastly, do some research on any potential banking options to see what past and present customers have had to say about their experience. Online reviews, forums, and blogs can be a great place to gather information about a potential brand that won’t be included in the marketing material.
Knowing what your business needs financially to succeed will help you find the best bank.