Your choice of business bank is one that could have a significant impact on the way in which you run your business. Self employed individuals and small business owners have enough to worry about without having to battle with an uncooperative or inefficient bank. It is therefore important that you find a bank and, crucially, an account that does exactly what you need.

Choosing a business bank

• Think about cost
  Business banking, unlike personal banking, is not normally free. While many banks offer introductory offers to new customers, you should be prepared to pay for your business banking in some way. Most banks offer a few plans to suit different businesses. Broadly speaking you will have a choice between paying monthly, or paying on a per transaction basis. Consider the best plan for your estimated transaction levels – and remember to shop around to get the best deal.
• Dedicated small business support
  Most high street banks now provide staff that offer specific support to small business owners and the self employed. Think about arranging meetings with a few banks in order to get a feel for the service that you might expect. Some banks offer a more face-to-face relationship than others; think about what sort of service you would prefer and choose your bank accordingly.
• Faster Payments Service
  The Faster Payments Service means that you can now make and receive payments within a couple of hours, rather than having to wait days for electronic transfers to take place. This new service has already helped to ease cashflow for businesses around the country.

  But not all banks are offering the Faster Payments Service yet. If you anticipate that you will need the ability to make and receive payments quickly (and, let’s face it, how many self employed people don’t?), make sure that you only choose a bank that offers the Faster Payments Service.

• Online banking services
  Although virtually all banks now offer online banking services, the quality of these services can vary significantly. Make sure that the online banking service you are being offered is capable of performing the tasks that you need.

  Similarly, you should check that the online banking service can export data in a format that is compatible with your accounting software. If you are hiring an accountant, make sure that they can use the data.

Above all, remember to shop around. A huge number of new business owners just go for the bank with which they do their personal banking, but this might not be the best choice for you. Investigate a few deals, talk to a few small business managers, and make a decision at your own pace.