Step by Step: Opening a Business Bank Account for Limited Company Owners in the UK
The process is quite straight forward to open a business bank accounts for firms which have U.K. resident shareholders & directors. A number of banks provide different types of accounts suitable for various requirements. After you’ve provided the essential documents, the bank will perform the necessary checks on the signatories for making sure they’re the suitable candidates for managing and accessing business funds.
Note that if the credit score is not that good, it would be difficult to open an account with most banks.
You must consider certain aspects whilst looking for the required banking facilities.
Suggestions from other companies or the accountant
Account fees and other charges
Rate if interest
Internet banking option
Important Things to Remember:
Majority of the sole traders prefer using personal accounts for managing their business and more often than not, this might be the best alternative for them. Not only are the personal accounts free, they may also be far more affordable than the business accounts. When it comes to a limited firm, a business bank account may become a necessity & as an entrepreneur, it would be better if you shop around for these.
Today, a number of websites provide price comparison which enables you to pick the best option for your needs. So, feel free to go through these sites for finding out which bank offers better deals in the market.
Avoid entering incorrect info
Many entrepreneurs & small businesses tend to bring in wrong documents to their account opening appointment. As the needs of each banks tend to change in some way or another, ensure that you ask the officer about the things which you’ll be required to bring during your very first meeting.
Two is better is one
According to experts, businesses must think of banks just as one of their suppliers. It is important to note than banks are suppliers of various financial services & hence, it is not appropriate to think of them as your partners. Hence, you want to treat them just like any other provider in the supply chain of your company. Experts also suggest that you want to use more than one bank to create a competition among them. In order to reduce business risk, be sure to have 2 or more suppliers for a major product while making sure the suppliers know about one another. When you make them compete with one another, they’re likely to offer you better deals. This principle applies to banks as well.
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