How to choose the best business bank account for startups

Choosing the right business bank account is vital for a start-up to manage its finances efficiently. At this important stage in the company’s development, the right business accounts can help start-ups in several ways, which we’ll look at here. 

Genome is an innovative electronic money institution that offers a selection of comprehensive business account solutions. We have useful options for anyone looking for a solid startup business account to start accounts, get cards, and make bank transfers locally or worldwide.

We’ll be looking at the points to consider when looking for the best startup account for a growing business based on its current needs and hopes for the future.

Do start-ups need business bank accounts?

Opening a startup business bank account is a necessary step for organizing the business finances of a limited company. It becomes much easier to carry out tasks like tracking expenses, managing cash flow, and preparing for tax season when everything is neatly organized online. Even if you use accounting software to track your finances, a small business account will help you greatly.

Having a bank account also helps small businesses show that they are serious about managing their funds and keeping their business finances separate from their personal banking. Such an approach enhances the start-up’s credibility when dealing with clients, vendors, and investors. 

Moreover, it has become very common for limited companies and sole traders to have and benefit from business bank accounts nowadays.    

Helping investors stay confident in you

What if you’re about to close an important deal but realize that you don’t have any professional way of sending or receiving money? Investors could lose confidence in you if they’re asked to send money to a personal account or by an alternative method that doesn’t fit the modern business world’s way of working.

While a bank account might not seem strictly necessary at the start of your journey, you’ll soon realize that carrying out transactions as a limited company with scope for growth becomes a lot easier when you have one of the best business bank accounts tailored to your needs. Getting this sorted out as quickly as possible allows you to focus your energy on other aspects of your company’s growth. This is when bank accounts for startups may come in handy.

Key features to consider in a start-up business bank account

Not all business bank accounts are the same, with fees and ease of use among the key differences to understand. To find the best start-up business account, you should take into account the following points.

Low fees and costs

If your monthly account fees and the cost of bank transfers are high, this can have a negative impact on your business. This is particularly true for new businesses that have a lot of operating costs and are still waiting to make a breakthrough that leads to big profits. 

You need a business current account with low fees for the everyday banking transactions that you’re going to be carrying out regularly. Don’t forget that you might need to carry out more transactions than you expected at the start, so every monthly fee or transaction fee paid in this respect will hurt your profits.

Free accounts or those with a minimal monthly account fee and low-cost transactions will allow you to use your account fully without any fears about the costs building up. Check this guide to setting up a free account that you can use without worrying about the costs involved with paid accounts. 

You can then relax and start banking without worrying about how much the monthly fee and other costs will add up over time.

Ease of account setup

Getting started with high-street bank accounts for businesses can be daunting. You don’t want to get delayed with awkward requirements and time-consuming processes when trying to open an account for a limited company. Imagine the hassle of having to visit high street banks several times to carry out the account opening process while you’ve got thousands of other things you’d rather spend your time dealing with. 

That’s why a smooth registration process is a huge benefit when choosing online startup bank accounts. A simple, hassle-free signup process lets you get your account up and running in no time. Bear in mind that this is something you can do at any time, so there’s no need to lose a chunk of your working day in the way you would by going to physical bank branches. An online startup business account allows you to focus on making your business grow. 

With no monthly fee, this is a free banking approach for sole traders, companies with up to two owners, and startups where several people need access to the account. Or, you might need a joint business bank account. 

Online banking capabilities

Being able to carry out online banking is one of the key aspects of modern startup business accounts. This functionality allows you to access essential features at any time of day or night and manage your bank accounts on the go using any device.

By accessing online banking, you can keep a close eye on the funds moving in and out of your startup account. It is crucial in the early days when things are moving quickly, and you need to keep a close eye on the flow of cash.

By using an online money app, you can access savings accounts and credit check accounts even more conveniently on a smartphone. 

Genome’s business banking features

A business account from Genome with useful services and some free business banking features will help you to make the most of your banking options without paying too much. The following are some of the benefits you’ll receive without visiting high street banks to make transactions.

Dedicated IBANs

Payments become a lot easier when you have a dedicated IBAN (international bank account number). Send and receive SEPA transfers instantly across the European banking system without any fuss. You can send hassle-free UK transfers, which are available via the international transfers feature.

To make things easier, you can save and schedule transfers from your business bank accounts as your business grows, as well as open additional multi-currency accounts for free in 11 different currencies! This lets you broaden your horizons as you look to do business in different countries without any financial barriers getting in the way.

International transfers and currency exchange

Global transactions are easily within your reach as you expand with the help of a business account from Genome. A startup bank account needs to help you send and receive money from business customers effortlessly, no matter where on the planet they’re based.

International payments save you money when they offer various currencies for cross-border transfers. We give you competitive exchange rates and route your transfer via the fastest, most cost-effective payment option to make sure that nothing gets in the way of your growth. A new business account can be set up with access to multiple currencies for SWIFT transfers, including USD, GBP, EUR, PLN, CHF, JPY, CAD, CZK, HUF, SEK, and AUD. Just make sure your company is eligible for international transfers. 

Business card solutions

Business credit cards and debit cards often provide the fastest and most convenient ways of paying for certain transactions. They also provide a high level of security that gives peace of mind when paying for business expenses and other costs directly from business accounts.

With Genome’s Visa Business cards, you can pay directly from your business bank account, using these debit cards for in-store, online, and contactless payments. Get a corporate debit card, which is free of a monthly fee, and use it for business trips and other corporate expenses. You can also issue dozens of virtual cards to effortlessly manage subscriptions and media buying for your business.

Batch transfers

Batch transfers from a business bank account provide an effective way to send numerous transfers with no fuss. Whether it’s to play salaries or manage contractor payments, this is a time-saver that lets you organize your bank account quickly and safely.

Batch transfers can be carried out from your Genome account through SEPA or instant internal transfers. Use a CSV or XML to send your batch transfers to the right people effortlessly.

Comparing business bank accounts for startups

Assessing business bank accounts and their features lets you make the right choice and get the best startup business account that’s perfect for your requirements. There are several factors to take into account, so we can look at them one by one to see how to make an informed decision that makes sense.   

Features

The ability to send money anywhere in the world at any time is one of the huge benefits of an online business bank account. With the online money management options from Genome, you can keep your personal and business finances separate while keeping track of everything that enters and leaves the account. 

This modern approach to the banking process is ideal for a start-up business with ever-changing needs and fast growth potential. As the company grows and you add staff or find new providers, you can adapt your banking process accordingly and keep your focus on the things that matter.

Fees

The monthly fee – or lack of one – is a key factor for anyone opening any type of bank account. Yet, paying a monthly fee compared to free banking becomes even more important when we look at startups and sole traders who need to find value for money and have many other costs to take into account.

A monthly fee on a startup bank account from a high street bank can quickly eat into your profits and harm your future growth. By choosing an online business bank with some free banking features, you can remove your monthly fees and keep transaction costs as low as possible by carrying out cost-effective transactions such as local transfers.

A start-up business account with low monthly fees is ideal for having one less thing to worry about. With many other expenses to worry about as the company expands, it’s reassuring to know that the cost of your bank accounts isn’t one of them. 

Pros and cons

• Doing business online is easier with modern internet bank accounts.
• Mobile banking with an app adds an extra layer of convenience.
• It is easier to reach a global market with international transfers.
• Generally, startup bank accounts cost less online in monthly fees and transaction fees.
• Keep a separate business bank account to manage your startup away from your personal finances.
• Customer service can be obtained easily online at any time and with fast response times.
• Traditional business banking facilities may suit some customers, as some offer unique/extended features, loans, etc.

Benefits of choosing Genome’s business account 

Genome’s technology ensures that your transfers are always processed swiftly and securely. Our accounts use the latest measures to ensure that your business banking is carried out in the safest way possible. 

Open a business account for your startup, and you’ll have the flexibility to use our services as your company grows and evolves. We’ve got all the features and benefits you need from a startup business bank account now and in the future, with transparent and fair pricing. 

How to open a Genome business account

Opening your new business account with Genome is easily done. 

• Use the ‘get started’ button to begin the process, where you’ll be asked to enter your email address and create a new password for your login credentials.
• The next step is to choose the “business wallet” option.
• Continue by entering your details where prompted.
• Complete the verification process by sending the required documents;
• If you need help during the registration or verification process for your new account, you can get in touch with the customer support team for advice. 

Conclusion

A small business with big plans for the future needs the right kind of business banking facilities. By selecting the right bank accounts with helpful features, start-up owners can make cost-effective transactions and control their finances without worrying about paying a large monthly account maintenance fee. 

Genome is here to give you the secure and flexible business account you need to keep your company on the right track. With comprehensive financial services tailored to suit the company’s needs and a strong focus on security, our business accounts let you concentrate on taking the right steps to grow your company in the knowledge that your business account is in safe hands.

Making the right choice

Choosing between business accounts is just one of the big decisions to be made as your startup grows. Good financial management using accounting software and smart decisions in areas like free business banking are going to help make your company easier to manage and organize.

By choosing low-cost banking services with a range of useful features for owners of small and growing businesses, you can make sure that your business banking is one less thing to worry about as you deal with all of the other aspects of the business world. 

FAQ

What’s the difference between a business bank account and a personal bank account?

A personal bank account is used to manage your individual finances, while a business bank account covers a company and is often used by several people in the firm. The best business bank accounts offer benefits, such as low monthly fees, free UK transfers, etc. 

Can startups open business accounts with no credit history?

Yes, it is possible, as new businesses might not have a credit history yet. However, different financial providers have various onboarding procedures in place. 

What security measures should startups look for in a business account provider?

Only use a fully regulated UK bank/fully regulated financial institution in your country that carries out business transactions in accordance with banking regulations and complies with PSD2 and PCI DSS. The platform should be safe and secure, using the latest encryption techniques and two-factor authentication to boost security levels where necessary.

How does having a business account help with managing taxes for a startup?

The best business bank accounts help startups by allowing them to organize their finances more clearly. With only business bank transactions noted and an easy search function, looking for transfers and other money movements on online business bank accounts for tax purposes is simple.

Are there limits on international transfers for business accounts?

Some business bank accounts put limits on the amount you can send through bank transfers, but Genome doesn’t restrict you in this way. You can send funds to over 40 countries in a variety of ways, internationally and within the same country. Multi-currency account options allow you to keep your funds in the currencies that suit you.

What are the main benefits of choosing an electronic money institution over a traditional bank?

The chance to open a free account, carry out transactions online, and access customer service at any time are all major advantages offered by online financial institutions. Sole traders and limited companies can keep their financial transactions separate from their personal accounts and still have complete control at all times.