Successfully Funding Thousands Of UK Limited Companies Since 1989
Require Immediate Support? Helpline 0800 056 0410
Opening a business bank account is a crucial part of setting up any business. It keeps business transactions separate from your personal banking and makes bookkeeping much easier.
Advances in banking technology now offer you a range of business banking options and there are plenty of alternatives to the ‘traditional’ high street bank accounts depending on your needs.
So how do you set up a business bank account and which type might be better for you?
You’ll need to provide some information about your company to the bank when you open your account, including:
Armed with this information you can approach the bank of your choice and arrange a meeting to set up the account. Alternatively, you might choose to open a business account online or use the bank’s app.
If your business affairs are complex or there are multiple directors the bank may need to see you in person. This also determines how long it takes to open your account – if your company has straightforward affairs, for example, some banks may be able to open an account the same day if you attend a local branch.
There are typically fees associated with a business bank account, which can vary considerably between banks. The cost of a business bank account typically depends on the number of transactions that pass through the account each month.
If you organise an arranged overdraft there will also be a fee for this. Some banks make introductory offers, such as 12 months of banking with no fees, but it’s important to make sure that the account meets your needs rather than simply taking advantage of this type of offer.
Apart from keeping your business transactions separate and easy to identify for accounting purposes, setting up a business bank account supports a good credit score and keeps you on track financially.
It facilitates simpler bookkeeping and helps to ensure that you pay the correct amount of tax. Crucially, it provides reassurance to lenders and potential investors that the business is a legitimate and trustworthy entity.
This is important if you need to secure finance to grow the business – to fund expensive machinery or equipment in the future, for example, or gain access to better terms and conditions on business loans. Once your application has been accepted you should receive your account number, sort code, and debit card within a week or so.
UK Business Finance can offer more advice on how to set up a business bank account. We’re commercial finance brokers and can also guide you on the best types of funding for your business. Please contact one of the team to arrange a free consultation.
We work across a wide range of sectors throughout the UK, providing specialist advice to each sector.
What can company finance be used for?
Business finance can be used for a multitude of purposes within a company, from boosting general cash flow to funding development projects and buying stock. Its flexibility and adaptability to an individual business’s needs make it ideal whatever stage of business you’re at.
Management buy-in financing options
If you’re considering being part of a management buy-in (MBI) or you’ve decided to sell your own business to an incoming management team, there are several ways in which the transaction can be financed.
Can I get business finance if my company is insolvent?
If your company is insolvent, it’s vital to stop trading straight away and obtain assistance from a licensed insolvency practitioner. The insolvency practitioner’s role at this point is to assess your company’s financial situation so that they can provide guidance on whether additional finance is appropriate.
Can’t pay company bridging loan – what are my options?
A bridging loan is a form of short-term finance that lasts for up to 12 months. It provides vital funding between transactions when a company purchases one property before the sale of another has been completed.