Switch business bank account: everything you need to know

There are several reasons why you might want to switch your business account. This process is useful when your current bank account no longer meets your needs. We’ll be looking at the importance of making a smooth transfer to a new bank account and how to do it well.

Find out the key steps to follow when you switch bank accounts and some of the benefits it’ll give you.    

Why businesses consider switching their bank account

Companies can decide that they need a new account due to high fees. They might also feel that their old account no longer has the range of features they’d like to use. Poor customer service is another valid reason for considering a business account switch.

Finding a new business current account provider can lead to other useful changes. The new provider might have advanced tools and a more intuitive platform than the old bank, giving better online access. 

If they offer better rates and lower fees than the old business account, it’s going to be a worthwhile switch. 

A good example of when a new business account is needed comes when a company now deals with incoming and outgoing payments online, meaning that they need a more robust online service. Or they may find that their cash flow has increased and a smoother, more flexible process for controlling their finances is needed.

Key benefits of switching a business bank account

Making a bank account switch can lead to significant benefits that make it easier to manage your funds. These include a better online banking experience with a better website that lets you stay in control of cash receipts as well as direct debits and standing orders. 

A new business current account may give you access to enhanced accounting tools as well as lower transaction costs. You might not get completely free banking, but saving money on transaction fees by using a current account switch service is a good move at any time. 

A limited company can boost its efficiency by working with a business current account provider that allows multiple currency options and batch transfers. If the old bank account has a single currency option, doing business abroad will be a lot easier with a new bank account.

Businesses with a lot of direct debits and standing orders could save a lot of time with a more agile platform. Adding batch transfers could also help make the company’s processes slicker, giving another tangible benefit from the account switching process. 

A full switch to a new bank provider could open up the possibility of using debit cards that suit small businesses, with the option of a virtual card for even greater security. A business credit card gives you added payment flexibility.

When is the best time to switch your business account?

Small and medium-sized enterprises all have different needs. It makes it complicated to state exactly when you should make a change to a new current account. There is no current account switch guarantee that fits every case. 

Business banking customers should be aware of how their situation changes to work out when it might suit them to change to a new current account. The end of a contract period in an old business account could be a trigger for choosing an account switch date. 

You might also decide that a business bank account switch is a good idea when you undergo a period of significant business growth or enter new markets. A change in legal structure or operating processes may also provide the trigger for change. 

You may also be persuaded when you notice new money management apps on the market or read advice on financial comparison websites.

It makes sense to change your current account when your business is in a quiet or stable period. Avoid periods like the peak sales season when a large percentage of your annual turnover should be generated without any distractions. 

Above all, plan the switch date in advance to make sure you have time to carry it out without any issues.

A step-by-step guide to switching your business bank account

Switching to a new account doesn’t have to be a problem when you follow the steps to get it done.

Compare new account options.

Switching directly from your old account to a new account shouldn’t be done without some research. Look at the features and payment services that are going to be useful to you. International transfers, dedicated IBAN, and API integration are all worth looking for.

Create a checklist of the business account features that you need or want. This will help to ensure that your new business account aligns with your company’s financial requirements,

Gather necessary documentation

When you open a business account, you’ll be asked for certain documents from, for instance, Companies House and elsewhere. This typically means providing the likes of business registration, identification, and proof of address.

Being prepared will help you make the switch to a new account number. Getting your documents ready before the start date is a good start. The documents you’re asked to provide may vary by region and be subject to status, so always check the specific account requirements. 

Open a new account

Fill out the current account opening form online accurately, making sure that you complete all the details. Look out for any follow-up questions so that you can answer them promptly and avoid any delays in opening your new account. 

Fast online verification processes can help to make the switch to your new business current account easier. You can carry out the switch safely with Genome, as we are a licensed electronic money institution supervised by the Bank of Lithuania, giving a fast, secure online account opening process. 

Genome offers business wallets for a wide variety of companies. All our services are secure; we comply with all major regulations.  

Inside our business wallet, you can start up to 5 business accounts in each currency: USD, GBP, EUR, PLN, CHF, JPY, CAD, CZK, HUF, SEK, and AUD, thanks to the multi-currency account feature. You can safely give other staff members access to your wallet so you can manage your financial operations.  

You can easily transfer money via SEPA Instant and Credit Transfers and make mass payments. Corporate cards are also available for order: you can get a virtual Visa card online or get your physical card delivered. 

And, of course, Genome’s support team is always eager to answer your questions. 

Other features include dedicated IBAN, international transfers, and currency exchange options, making Genome a solid option for businesses of all sizes and annual turnover figures.

Common mistakes to avoid

Rushing to meet an aggressive switch date is a common issue with current account switching. You might find that giving yourself just seven working days to move to a new account is a mistake that causes you to be charged extra transaction fees or harms your credit status through missed payments. 

Failure to double-check all the direct debits and standing orders is another common error. You need to be sure that everything has been switched before ordering your old bank or building society to close your business current account.

Security and compliance considerations

Security is a key concern with any new business or personal account. You need a fully licensed bank to handle your financial data and transactions. This puts your mind at ease that you can trust them to look after your banking with robust security measures.

Adhering to regulatory requirements keeps the customer data safe and protected. Genome is supervised by the Bank of Lithuania. When you switch to us, you’re guaranteed compliance and account protection.

Make the right switch at the right time

Choosing the right reasons to switch business savings accounts and current accounts is the right start. You can apply online to start using a modern approach where you save on transaction fees as well as time. 

Take the time to carry out the step-by-step current account switch service process we’ve looked at here. Avoid the common pitfalls by carefully checking your old account after a partial switch before making the full switch.

Choose a reputable institution like Genome when searching for a current account switch service. This will ensure you get a new account that suits you with no fuss.

FAQs

How long does it usually take to switch a business bank account?

Apply online and wait for the compliance procedures to be completed. After this, it depends on when you choose to move all your payment and debit card details before closing the old bank account. 

Can I switch my account if my business is still in its first year of operation?

Yes, you can make this switch at any time. You’ll be asked for identification documents and details to get started on the current account switch service.

Do I need to inform my clients about the new bank account details right away?

It depends on whether you plan a partial switch with your old bank account left open temporarily. Don’t risk missing payments by rushing the switching process.  

Is it possible to switch business bank accounts if I have an outstanding business loan?

Check the loan terms to see if this is going to be an issue. It’s normally possible to switch account and get the loan repayments taken from your new account number.

Will switching my business bank account affect my credit score?

No, opening a new account shouldn’t affect your credit score. Banks don’t report to credit bureaus when opening a new current account or savings account.

How can I ensure minimal downtime during the transition?

Look for a new bank account that offers modern tools such as batch transfers, allowing you to get your transactions transferred automatically with no fuss. Keep your old account open until you’re certain the switching process has been completed.