Finding the best bank for new businesses is one of the significant challenges for any start-up or emerging small business. We’ll be looking at the main reasons you must be careful and thorough when choosing a business account. It will ensure that you get the right financial partner for growth that offers good financial management and transaction efficiency, among other benefits.
Why it matters to pick the right business bank
A business bank account must meet a small business’s needs to be effective. It means reasonable monthly fees, good customer service, and a range of business-focused products. Business banking services also need to be flexible in case a company’s needs may change over time as it grows or enters new markets away from home.
If these needs aren’t met, it makes running a business account a lot more expensive and difficult in terms of monthly fees or time-consuming processes. It is why everyone is looking for the best business bank accounts and why you should be aware of the most common issues that make the best options stand out.
Finding an account with free banking or low fees is good news. Specialized business services and better financing options make managing your business finances easier and with no fuss. Your business account should be there to help you grow and handle your financial obligations without any hassle. It shouldn’t make running a business more complicated or require you to learn how to use complex accounting software.
Whether you operate as a sole trader or a limited company, finding the right EU or UK bank for your business account will give you the confidence to face the future. A business current account with low monthly fees and good mobile options is the ideal start-up business account to get you on the right track.
The key areas
A business account with low and transparent monthly account fees and reasonable transaction fees saves you money. Free banking is ideal, but you may need to pay monthly fees or meet charges for certain transactions. It depends on the types of transactions you carry out and the different ways you use your account.
Foreign transaction fees can add up if you make a lot of international payments or travel abroad regularly. The best business bank accounts help you avoid monthly fees while carrying out transactions like card payments and transfers across the planet. Look for an account that gives you the freedom to move your money internationally without paying over the odds.
Online banking with a user-friendly interface is crucial. It simplifies the process of carrying out business banking operations smoothly and at any time of day. Having online access to your business banking information allows you to control your finances, no matter where you go, through remote account management. Conveniently check your business current account for cash deposits or ATM withdrawals you’re expecting to see.
You might need different business banking options like a current account, a specialized merchant account, or a business saving account option. There’s also the chance that you need to add accounts or functions over time as your company expands into new areas. Having the option of various business bank accounts makes it easier to find one that’s ideal for your needs.
Scalability is another point to check when looking at sole trader and limited company bank accounts. It simply means that you have access to banking accounts and services that grow with your business. The options include credit lines, business loans, and other useful services. Opening a business overdraft with a low monthly fee can help fuel future growth, so don’t settle for a business account that will limit your future.
Open an account
in Genome online
Pricing structure
Understanding the cost of business bank accounts helps you to make good decisions. It means looking for possible hidden fees or tiered pricing structures. They could make your monthly fees a lot higher if you need to pay them. Keeping costs low without losing any flexibility or important services is the key to getting the balance right.
Compare costs between accounts by looking at the main areas. Like cost per transaction, ATM withdrawals, and any monthly maintenance costs. The type of transaction you use most often is where you should focus your attention, as the costs will build up if you need to pay fees regularly. Don’t overlook the fees that look low. After all, they could hurt you if applied to numerous transactions weekly or monthly.
A start-up business account that offers free banking or low monthly fees lets you focus on investing your profits into the business rather than paying banking fees. It might seem like a relatively small point at first. But over time, it can result in a large sum of money that either goes into your business or goes towards the fees.
You need to understand the monthly fees and one-off charges based on the transactions you will be carrying out. If you only plan to receive cash deposits and make transfers to a UK bank or any other domestic bank, you might not be worried about other monthly fees for transactions you won’t be making. However, it’s important to think ahead when opening a business current account and consider what you might need to do in the future.
Digital banking capabilities
The rise of digital online banking has allowed busy entrepreneurs to look after their bank accounts in the way that suits them best. Modern options such as batch transfers for multiple payments and integrated accounting tools help save time when running your business.
Security is a key concern when operating a business bank account online. You’ll want strong security measures like two-factor authentication and additional fraud prevention methods. The best business bank accounts let you operate online without any fear, as you know that your details are always safe.
In the increasingly global business world, being able to operate your business bank account online is more important than ever before. If you travel to other countries for business reasons, seeing your latest transactions and checking your account balance on a mobile device is now a crucial business task.
It raises the question of how secure your account is. You need to feel completely sure that your data is being protected from hackers no matter how and where you access it. Don’t use a bank that doesn’t provide clarity over their data security measures.
How to compare different banking providers
There are many business bank accounts in the market, so choosing one is crucial. Take the following points into account to make a smart, informed choice about the best business bank accounts that might be right for you.
Look for UK bank reviews and feedback from other small business owners. Anyone who has opened an account for business purposes could have some valuable information about their experience. Naturally, we all have different experiences, so you need to take your needs into account. For example, let’s say an account holder isn’t happy with their business overdraft. But if you don’t plan to have an overdraft, you might not put too much emphasis on this aspect.
Compare the annual fee and any other charges. Do they offer free UK bank transfers, and do international payments have a fixed fee? If the fees are too high, you might eventually feel that you need to switch business bank accounts to get a better deal. Even if you’re not going to trigger monthly fees just now, you might decide that you don’t want to run the risk of incurring these fees in the future as your business grows.
Thinking long-term is also important when looking at customer service quality. Bank accounts backed by 24/7 support through live chat and phone lines are more likely to meet your future needs. Even if you don’t do much more than receive cash deposits and pay direct debits or bills, you might need your account for business purposes to cover many different transaction types at a low cost.
Introducing Genome as a modern banking solution
Genome is a solid choice of electronic money institution for business bank accounts. Regardless of your annual turnover figure and whether you’re a sole trader or a growing company with a large annual turnover, you should find the right account for your needs. With a responsible approach that includes being licensed and supervised by the Bank of Lithuania, Genome offers a range of benefits to help start-ups open the right business account.
A dedicated IBAN for SEPA transfers across Europe is available. So are options for international payments and an excellent currency exchange rate. The option of carrying out batch transfers for payments in bulk provides another useful business feature. Small businesses that have a global reach can choose the services that fit their business model. It lets them remain competitive in different markets. If you need a euro or dollar business account, this can be arranged, as Genome offers 11 currencies in which to store money.
By using advanced digital infrastructure, Genome makes it easy to run a business account with modern features and a high degree of security. Streamlined daily transaction processes allow startups to operate efficiently with a business bank account that saves time and money. Mobile banking via the Genome app lets you stay in control of your start-up bank account even when you’re away from the office or out of the country and want to see if you need to deposit cash or make a transfer.
For a new business, this is the kind of business bank account that helps them grow, allowing them to take care of all financial transactions that could cost them a lot of time otherwise. Genome then helps businesses to continue growing by offering them all the services they need.
Open an account
in Genome online
Tips for a smooth banking setup
Making a smooth start with their business bank account is one of the most important steps for a new company. By carrying out the following steps, it’s possible to get it up and running quickly and with no fuss.
The first step is to decide which business account you want to open. There are several important factors to consider when looking at the list of options. So take the necessary time to understand what type of bank business account is right for your company. What services and products are going to help you succeed? All small businesses have different needs, and you should consider why you need a business bank account before choosing.
The documents you need to verify your new account
The next step is to gather the relevant documents needed to open a business account. Expect to be asked for items such as ID verification, proof of address, and your business registration documents. Verify your compliance requirements based on the industry you’re involved in and where you operate.
You can then plan for future growth once you open a business bank account that meets your present and future needs. Consider whether you need a Visa business card to spend money as you travel. A dedicated IBAN account can be added to your local account details for more flexibility.
Every sole trader and start-up company has the freedom to look for the products and services that they need at any given time. You might discover that being able to make international transfers easily opens up a whole new world of opportunities.
It is also a good moment to consider the usefulness of a multi-currency start-up account. If you plan to do business with companies or customers in other countries, having access to an account in the local currency can be extremely helpful. Alternatively, you could request the addition of different currencies as your business needs change in the future.
Key takeaways
Whether you’re a sole trader or a limited company, finding a financial partner you can trust is a major starting point. When you realize that you need a business bank account, it’s time to look for the best options. This lets you separate your business cash deposit and direct debits from your personal bank account and look ahead with confidence.
Choosing the right business finance option for your limited company is about finding the right balance. You want a wide range of business bank account services without having high monthly fees or needing to use complex accounting software. A user-friendly approach with low fees is ideal.
We’ve also looked at how scalability is important when choosing a business current account. If you don’t want an account, that’s fine for now, but it soon limits your ability. What do you eventually need to do to make international payments, such as regular transactions? Think ahead and see what bank account features could help your future ambitions.
The key takeaway is that any sole trader or limited company can open a business account that meets their needs. Rather than trying to cope with just a personal account or using free accounting software, you should look at the bank business options. Before choosing an account, see what looks right for your present and future banking needs.
FAQs
Is an online-only business account safe for my startup?
An online business bank account gives you instant and secure access to your business current account 24/7. Be sure to choose a reliable bank business provider and keep your devices updated with the latest security features for maximum protection.
Can I open multiple checking accounts for different aspects of my business?
Yes, you can open a business current account and another for your business savings. You might also decide to open a different business account for each currency you use. Check any monthly fees before opening multiple accounts.
Do I need a separate bank account for my side hustle?
Keeping personal and business income in different accounts helps you with taxes and budgeting. You might also like the idea of a business current account for each aspect of your business activity.
How can I increase my transaction limits as my business grows?
Your first business account might not give you the limits you need once your limited company grows over time. Bank business options for growing companies include increasing the transaction limits. This can normally be done by contacting customer support or carrying out a short online process.
What extra security measures should I look for in a business bank?
A dedicated business bank account should give you mobile banking access through a secure app. Two-factor authentication is commonly used for online banking access. Other business account protection features include the tokenization of cards and data encryption.
How do I switch banks if I’m unhappy with my current provider?
The type of current account switch service used for personal accounts isn’t commonly used for business account switching. If you feel that the time is right to open a new business current account, you can easily carry out the opening process online without a currency account switch option.
