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Topic Title: Business Banking
Topic Summary: Why ?
Created On: 18 December 2012 05:25 PM
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 18 December 2012 05:25 PM
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Ampman

Posts: 1004
Joined: 06 February 2006

Evening All ,

Whats the advantage of having a business account over a current account ?

Plus which bank to use ?

I know its a good idea to keep everything separate from personal accounts .

cheers
 18 December 2012 05:49 PM
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colinhaggett

Posts: 362
Joined: 08 July 2004

Your bank might complain if you use your current account as a business one. Also if you want to look professional and use a trading name your need a business account.
 18 December 2012 06:11 PM
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Ampman

Posts: 1004
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Thanks
 18 December 2012 06:50 PM
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mossep

Posts: 339
Joined: 05 December 2010

No real advantages, it just costs you more money and you'll find less branches that are able to help you with anything!

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www.mossep.com
 18 December 2012 06:53 PM
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aligarjon

Posts: 2813
Joined: 09 September 2005

i haven't had a business account in 16 years and have not paid a single bank charge in all that time. i was with HSBC for most of that time until they closed my local branch, i just used my current account, i didn't use it for anything else. I moved to Barclays about 3 years ago and i am doing exactly the same there, when we moved all of our personal accounts ( kids/joint etc ) i told their financial advisor dude what i was doing and they didn't mind. I don't have an overdraft facility as such bar for about £50.00 and have never gone overdrawn.

Gary

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Specialised Subject. The Bleedin Obvious. John Cleese
 18 December 2012 06:56 PM
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londonlec

Posts: 61
Joined: 29 November 2010

I was with HSBC and they kept posting my work cheques back to me.

I opened a business acct with Santander, and am more than happy with it.
Better levels of interest than HSBC. It costs £7.50 a month.
 18 December 2012 07:00 PM
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aligarjon

Posts: 2813
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My headed paper says make cheques payable to me not a company name ( which is just my name with electrical after it ). They weren't keen if it was made to the company as that wasn't the name on the account.

Gary

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Specialised Subject. The Bleedin Obvious. John Cleese
 18 December 2012 07:08 PM
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normcall

Posts: 8119
Joined: 15 January 2005

Most personal bank accounts state they are not to be used for business use.

I had the same problem as Gary. Most make cheques payable to me (personal service and all that) and for years my bank take them even though the account is a different name. Then the laundering of money act came into force, but a cunning girl at the bank thought that if the statements were sent to me personally, then they could still accept either. Naturally head office thought otherwise so I just closed the account and used my normal personal account - no problems so far.

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Norman
 18 December 2012 07:11 PM
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londonlec

Posts: 61
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Originally posted by: aligarjon

My headed paper says make cheques payable to me not a company name ( which is just my name with electrical after it ). They weren't keen if it was made to the company as that wasn't the name on the account.



Gary


Possibly the reason why mine were getting rejected
 18 December 2012 07:25 PM
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impvan

Posts: 752
Joined: 07 September 2005

If you're a sole trader just using your own name, no need for a business account. If you want to use a business name then you will either need a business account, or be prepared to tell customers to 'make cheques payable to'. If you go Ltd, then no option but to have business account; same if you want to accept cards.

There's no real need for separate personal and business accounts; if you're a sole trader you're one entity anyway....you just need to have clear books showing what comes in and what goes out, to keep taxman happy.

I'm a sole trader with just one account, I use the Co-op business account on the FSB's terms. No monthly fees, no-questions-asked 1k o/d at 0.5% over base, and interest on +ve balance. And if you ever need to call them, you do get someone with a reasonable grasp of English on the other end (well, Northern English at least).
 18 December 2012 07:30 PM
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Legh

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Joined: 17 December 2004

Same here norm,
I used my personal account for years, but some cheques got rejected because some customers preferred to be dealing with a company and/or business.
You will need a business a/c if you want to be Ltd.

Legh

-------------------------
Why do we need Vernier Calipers when we have container ships?

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"Science has overcome time and space. Well, Harvey has overcome not only time and space - but any objections."
 18 December 2012 09:31 PM
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slittle

Posts: 3484
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We've been with Lloyds since time began (well 30 years) and gone through a few stages of business - sole trader, partnership, now ltd and it doesn't cost us a great deal.

They offer an electronic tariff so anything that's not a cheque doesn't cost us in charges, and most of our customers pay bacs so it's not too much of a problem.

The business manager we've been allocated for the last five years is spot on, I can text him 24/7 and he'll answer and even sorts out my personal banking when I need things sorted.

I guess it depends how big you are, what services you want from the bank and what sort of relationship you want with them.

Stu
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