How to open a business current account?
Opening a business bank account is essential to keep your business and personal finances separate. A business current account is just a like a regular personal current account, and you use it to keep any income that you have generated through work, make payments and more. A business account can make allocating your expenses and filing your accounts more straightforward with the HMRC and avoid confusion in the long run.
To open an account, you can use the comparison table provided by Everything Financial to check rates and other benefits such as free banking.
Whilst the days are gone where you needed a meeting with a bank manager before you are approved, you will still need to pass the most basic checks such as proving your address and that you are who you say you are.
Many banks will allow you to open an account completely online, others may require a telephone conversation with a company representative to discuss how your business makes money. Once approved, you will be able to start using your business bank account immediately. If you wish to use an alternative bank, Everything Financial works with a number of app-based online banking companies which allow you to apply and receive a business bank account completely online – since they do not have any physical bank branches that you can visit. Many of these new app based banks offer great tools to help you manage your business effectively, such as invoicing and credit control or tax return calculators.
Money EditorPublished on Thursday, 19 September 2019
There is usually a monthly fee for having a business bank account of around £5 to £6 per month. This might be free for a certain period of time as part of an introductory offer – and this would be a good thing to compare when you are shopping around for the best deal. Some banks that we work with offer no monthly fees provided that you pay a minimum amount into the account each month e.g £750 Other fees will apply for using your overdraft facility or borrowing money through your business current account.
You will be required to provide the following information when applying for a business current account:
You should tell the bank if you have any foreign shareholders or directors of your business and that you need a UK business bank account, instead of having an international business bank account that is held overseas or offshore.
No, there are no credit checks involved when signing up for a business bank account. This is because you are not borrowing money (like a loan or finance), but using this as a bank account that you can put money into and make withdrawals and payments from.
Compare features such as free business banking, interest on in-credit balances, overdraft facilities and banking fees in an easy-to-view tables to find the best account for your business.