Finding A Suitable Business Banking Account
Business bank accounts are special bank accounts designed to provide businesses and entrepreneurs with;
- Better banking options,
- Easy access to their money and
- Other benefits not available to regular account holders.
Many UK banks offer their clients different business banking accounts and has pride itself upon customers who identify the bank with the best and most preferred business bank account. Most business bank accounts will have certain features such as;
- Overdraft facilities
- Free account transactions
- Free business banking
- Interest on any balances
- Free account opening
- And many more features
A good business account will better facilitate the flow of money into and out of the account. There are other benefits of having such a bank account. For sole traders, the account will enable them separate their personal finances from the business finances. It will also provide the business much sought after credibility. This may in return open doors to finance and loans from the banks and other financial institutions. The accounts will also be used to make payments to suppliers, process financial instruments such as checks.
It is important that businesses are able to identify the most suitable business banking provider. There are many different financial institutions providing these services. It is therefore necessary to search through the various business accounts offered by the different banks. This way, it will be possible for an interested business owner to identify their preferred bank account. There are online ways of comparing the different business banking accounts. When making a comparison, it is important to take into consideration factors such as the ease of opening a bank account, types of transactions provided, credit facilities and similar factors that will make banking easier and more convenient.
Where to Apply for Business Loans
When looking for business loans, many companies use a high street bank as a starting point. Banks offer reliable financial products, but acceptance requirements may be quite rigorous. This can exclude fledgling businesses, or those which have a high risk business development strategy. If your company falls into one of these categories, there is no need to give up hope. There are other agencies which may well be able to offer financial support. Detailed below are some alternatives to the high street which may meet provide the required business loans.
In some cases it is possible to successfully apply for grants, rather than business loans. The government has a range of grants available for small businesses. Depending on the nature of your business, pots of money may be available to finance environmental impact or waste reduction. Business Links often have information regarding local grants. Software is available which enables a search of grant funding organisations to be undertaken within search parameters, hopefully generating some options.
If it becomes apparent that business loans are required, then sometimes family and friends are the most cost effective option. Obviously such an arrangement requires an enormous amount of trust, but can ultimately be a positive experience for those involved. It is usually worth asking a solicitor to draw up papers formalising the arrangement, as protection may be afforded to recognised investors should the company go into liquidation.
Consider approaching a venture capitalist or applying to a peer-to-peer lending service. If the business idea is a good one, backed by a strong business plan, an independent lender may accept a higher level of risk.
When making an applications for business loans, a strong business plan and a good idea are crucial to success, regardless of the funding source. As well as borrowing from high street banks, it is worth considering grants, loan from family or using venture capital to help your business grow.