Business Banking and Finance

Ensuring a steady financial flow

In order for any business to function properly, it is vitally important to take control of your finances and take advantage of the business banking facilities offered by High Street banks and building societies.

Choosing the right bank to do business with can be a difficult choice, and many new business owners simply stick with the same bank they hold a personal account with. However, by doing some simple research, you may find other institutions are more suited to your needs and offer attractive deals.

Some factors to consider when setting up business banking for your firm

Does the bank have a branch nearby and do they have a dedicated business banking team?

It is vital for any business to have a solid relationship with their bank. Starting a business is particularly difficult and many budding entrepreneurs find that they need to consult their Business Banking Adviser on a regular basis to stay on the right side of business law. This is much easier to do face-to-face, and it is therefore recommended you choose a bank that can offer these services in a branch close to you.

When you find a suitable bank, arrange a meeting with their business banking team to get a feel of what they can offer you. Remember, these people could be vital to the survival and prosperity of your business!

Does the bank offer you direct access to the business banking team at all times?

Although most banks offer dedicated teams for businesses, they sometimes make it difficult for clients to speak to them unless they have booked an appointment. Check to see whether the bank offers a full and direct telephone banking service, or if they just route all calls to a call centre.

How much does the bank charge for its business banking services?

Many major banks offer free business banking services to new businesses for a limited amount of time, but when these periods end you will be faced by either a flat membership fee or individual charges for almost all transactions and services. For example, a direct debit usually incurs a charge of around 50p and a CHAPS payment can cost £20. You can ask for a full list of charges from the branch.

Also ask for details on ‘hidden’ charges and penalty fees. For example, how much they will charge you for unauthorised borrowing, or for a letter to be sent out.

What interest does the bank pay on its savings and current accounts?

During these belt-tightening times, banks have been notoriously stingy with the rates they pay on the money held for you. As you would with a personal account, ask for a leaflet detailing all the banks’ interest rates including those that will kick in once any promotional period ends.

Follow the steps above for a range of banks and compare your findings. You should then have a good idea of which bank offers the best business banking facilities that will hopefully help your business flourish.

One of the most important factors is the strength of the relationship between you and your dedicated Business Banking adviser. If you are not comfortable with them, or do not trust them, then your business may suffer. Ensure that you get along with your contacts at your bank before opening an account with them.

All about commercial law

Commerce essentially means the activity of buying and selling or trading. Commerce law governs various aspects of all forms of transaction.

Making the most of e-commerce

E-commerce is the common term used to refer to any electronic commerce that is done over the internet, which is regulated in various ways.

Health and safety and your legal responsibilities

Health and safety law puts a legal responsibility on employers and employees for their actions to prevent harm being caused to others.