Someone once described a bank manager as being: ‘someone who loans you an umbrella when it’s sunny, then asks for it back when it rains.’ This bears out my own personal experiences!
Before committing yourself to opening your business account you should ask prospective banks as many questions as you can. The list below is by no means exhaustive:
1. Will you have your own personal contact within their bank who you can call on for help and advice?
2. What is their criteria for granting business overdrafts? Some banks will insist you have an established track record with them for a period before they will consider your application.
3. Ask them to explain their bank charges, particularly in relation to free banking offers. Most banks only offer free banking on the basis that you manage your account within certain parameters. If you exceed those limits will you have to pay charges on all your transactions or just those that exceed their limits?
4. Ask them how they can help your business. This is where you’ll find out if you’re talking to a member of staff in a call centre reading from a crib sheet or someone who is actually interested in working with your business.
Finally, remember that banks exist to make profit for their shareholders.
Tips:
When it comes to bank accounts ^ keep your personal and business accounts at separate banks.
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