Business Bank Accounts

Most, if not all businesses will require a Business Bank Account.  Typically Banks will have different terms and conditions for Business Bank Accounts compared to Personal Bank Accounts.

For a Personal Bank Account that is in credit, many services provided by the bank may not be charged, However, for a Business Bank Account there may be a charge of numerous services, such as: a regular charge for having an account, a charge for each a check payment, a charge for an electronic payment, a charge for depositing a check, a charge for depositing cash, a charge for receiving an electronic deposit, a charge for making a deposit at a branch, etc.  On a positive side, Business Bank Accounts may pay a higher rate of interest on current accounts than many personal bank accounts.

Business Accounts are generally profitable for banks and they will compete for your account - once Business Accounts are opened they will usually remain with the same Bank for the life of the Business.  Shop around before selecting a Bank for a new business - there may be significant differences between charging regimes and there may be initial offers for new accounts - such are waiving all fees for an initial period.  Remember that your Business Bank will be a long term "Business Partner" and you may consider the long term support and assistance your Bank can provide more important than initial savings.

Many new Businesses may need some form of Bank Loan - particularly when the Business is first starting up.  For a new Business, you will probably need to demonstrate to the bank that the business is sound and expected to be profitable.  You may need to provide some form of personal guarantee to secure initial loans.

As a Business you may have a number of different signatories.  An early decision you will make is who, in your business, is authorized to do what, and how many signatories are needed.

Able was I ere I saw Elba

Financial Information Services, Banks; Business Loans, Commercial Loans; Venture Capital

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