Running a small business? Make sure you`ve got the right account
When you’re starting your own business, one of the first steps you must take is to set up a business account. With so much variety in the market, choosing the right bank can be a daunting task. Here are a few simple things to consider.
Matching Accounts to Your Needs
Every small business is different and has different needs. Be sure to carefully consider what it is you want from your business account. Is it a matter of handling cash flow or do you have investments to manage?
Getting a financial advisor could help you sort through the marketplace and find one that is best for you. Remember to think long-term as your business account is there for as long as you operate your own small business. Make sure it will fulfil your needs in the future.
What Kind of Bank Is Right for You?
Depending on the kind of business you operate, you might want to consider online banks. These are more popular as businesses move online and people prefer to get things done quickly via the internet.
If you prefer face-to-face communication, be sure to check that the bank you choose has plenty of branches.
Your business may operate internationally. In this case, check that the bank has a facility to process international currencies at a reasonable rate. This might require a different kind of account so be sure to keep it in mind when choosing your bank.
Business accounts have a different fee structure to personal accounts. If you are just starting your business, you need to forecast the number of transactions you might have within a month. This will give the banks a good idea of what kind of account to provide you with. If you believe that you will have a low volume of sales as a new business, let the bank know. They will choose an account with a fee that is manageable for you.
Choosing a Bank That Helps You to Progress
No matter where you are in your business career, you will eventually consider borrowing money. This could be for cash-flow purposes or it may be a loan to get your business up and running. Borrowing money these days can be quite difficult as the banks are increasingly wary of lending money.
Pay careful attention to your bank’s borrowing criteria. Do they match your needs? If not, think about a bank that might be smaller in size. They are often more willing to discuss your options and can be quite flexible with their lending.
It may be that in rare circumstances, you find yourself unable to pay back the bank loans you take out. In this case, you might be able to negotiate a payment plan with the bank. If that fails, consider an Individual Voluntary Arrangement. IVAs from companies in the UK offer a solution to pay back loans in a way that is manageable for you. An IVA prevents you from having to go into bankruptcy, which is something can be important if you want longevity for your business.
Starting and running a small business is an exciting time in an entrepreneur’s life. Getting the right bank account can make the process easier and provide you with the security you need to build and grow your business.
This blog post was written by blogger Jamie Knop on behalf of IVA Expert.