small business banking

[scotty]

I am in the process of setting myself up as a self employed painter and decorator, but am bemused by all the different options that banks have to offer. Can anyone recommend a bank that would suit my needs ?? Many thanks

[willowman]

We bought our own business 2 years ago and started to use HSBC. As we have a business account we are charged for everything - paying money in, drawing money out, they charge a percentage for all cash paid in, we are charged for just having the account and each year we are charged (�65) for a review of our overdraft facility.
However we have now joined the Federation of Small Businesses and members can get free business banking at the Co-operative Bank. So that may be worth thinking about.

[Oneeyedvic]

Abbey offer free banking (so long as you are happy with not paying in loose change - notes & cheques only).

Lloyds currently offer 18 months for new start businesses.

To be honest, most banks are much of a muchness - if you don't want any facilities (ie overdraft, loans etc).

By the sounds of it, you won't need anything, or a personal bank manager, so I would just look for the best deal.

[scotty]

Hi all thanks for your response. Oneeyedvic, you are right ,in that I will mainly be paying in cash and cheques and paying out on a switch card from that account to pay for my materials. The only time I will be withdrawing cash is to pay casual labour and diesel etc. I would like to be able to manage it over the internet as I think it gives easier access. I don't think I will be borrowing money i.e a loan but might need a small overdraft facility while cheques clear etc.

[Oneeyedvic]

In which case, Abbey would probably best suit your needs.

I'm a finance broker and deal with all the banks on a commercial basis - I can find you 100 people who say one bank is great and another 100 who say its rubbish.

For the sort of banking you want, to be honest there is nothing in it.

Bear in mind that as willowman says, you will get charged for everything, from writing a cheque, to paying money in.

Abbey are the only ones who do this free (as far as I'm aware) - however, all the others will offer an introductory free period. (watch out for some free periods as they will not pay you interest on your credit balances whilst the free offer is on)

[dzug]

Alliance and Leicester have a reasonable deal for small businesses and you can run the account on line (though it's a bit cumbersome for those used to personal banking web sites), Cash and cheque transactions can be done at any Post Office as well as branches. Not sure about the switch card though.
AFAIK the only charge is if you pay in large amounts of cash regularly.

[scotty]

Many thanks for your help all, have got a bit more digging to do yet, but at the moment I think I am going for Abbey. All help appreciated. Cheers H N Y

[clever trev]

started painting /dec 4yrs ago wanted simple banking like you,go into the cahoot site and open one on line, just open normal current /acc dont even mention business acc its just an excuse to charge you more,it is a division of abbey
good luck