Compare business bank accounts

Here at BusinessComparison, we help businesses secure the best business bank account UK wide. Are you just starting out and need to get a business bank account for the first time? Or, are you simply looking to compare deals and switch to the most suitable business account? Whatever the reason, we can help you compare business banking services from the top business bank accounts.

Which business accounts are available

Whether you are a small start-up or a large organisation, a business bank account is almost always essential. As a limited company, you will need an account, this is because the business is a separate legal entity. It is not a legal requirement if you are self-employed, although it will help organise your finances.

There are many types of business bank accounts, such as those with overdrafts, online account management and free business accounts. If you hold a business account, you will be able to keep your personal and business finances separate. Having a business bank account will make applying for a business credit card or loan more straight forward in the future.

Deciding which business account is the same as comparing personal accounts, it is important to find the best fit. Alongside the traditional high-street banks, there are alternative banks available, such as those which are based purely online. Many of these are popular options for businesses across the UK, so it is worth taking time to compare options.

Business banking options are different to personal accounts, as they often charge a monthly account fee and transaction fees. Although, by comparing the available accounts you may be able to reduce or completely avoid charges in the early days.

The advantages of a dedicated business account

The main advantage of a dedicated business bank account is that you can easily track your finances. Whether you are looking to calculate business spending, your earnings or your expenses, it is much quicker with a dedicated business account. It is also much quicker to calculate any taxes which you owe when you submit your tax return.

There are a variety of banks which offer free introductory periods, such as 18 months free banking. This is their way of supporting you in the early days, although many offer support teams and 24-hour account access. It is also possible to benefit from interest rates on balances, which is ideal if your account is rarely using its overdraft.
Although you are likely to pay for your business account service eventually, there are some features which you will benefit from. There are some banks which provide free extras as part of their paid accounts, such as free accounting software.

Banking for business start-ups

If you are a start-up, one of your first steps will need to be opening your business account. There are a variety of options available, including business bank accounts with no minimum balances and free introductory banking offers. As many banks that offer business accounts provide different types of accounts and offers, it’s beneficial to compare available deals.

Your personal bank account provider may offer a great service; however, they may not offer the same benefits as a business bank account. When opening your first business bank account, think about how you will use it and what you need.

Business bank accounts for those with bad credit

There are many banks that offer business accounts to those with a poor or no credit history. If you have been turned down in the past, there are still some good banks for business accounts available. There are banks with no credit check, yet they still offer many of the benefits you may require. For example:

• Business bank cards
• Online banking and apps
• The ability to pay cash into post offices and other convenient establishments
• A quick account setup without visiting a branch
• The potential to improve your credit rating through good account management

Business accounts for sole traders

Although a sole trader or partnership does not legally require a business account, it can be useful. A personal account can be used for business transactions, but it can make it difficult to organise taxes. There are many benefits to opening a business account, such as being able to make deposits using your business name. The account will also provide detailed transactions, which will make it much quicker to understand your businesses finances.

If you prefer, there are some banks which will allow you to use your personal account for business banking. However, you should check with your bank beforehand.

How to compare business bank accounts

Charging structures for business accounts can be complex and time consuming to compare, with limited comparison tools reviewing them like for like. We understand that it can be difficult to compare the options available, so we have created a free, no-obligation comparison service. Our comparison service is designed to help you find the ideal bank account. Whether it is your first account or you’re switching business banks.

It may seem easy to open an account with your personal bank, but they may not offer the features required. There are a variety of account requirements, so we have split the available options into different sections. You will be able to compare:

• The best accounts for start-ups
• The ideal business banks for contractors
• Banks which do not conduct a credit check
• Ideal accounts for small businesses
• Basic business bank accounts

There are many offers and benefits which banks offer as a way to attract new business customers. Although you may be tempted by a free initial banking period, consider the cost of the account once the free period ends. You should also consider the various fees charged by the bank. Some banks may charge you for each transaction that is processed through your account. Whether it’s via your online banking or business bank card.

The best account will match the way you prefer to bank, and the number of transactions processed through your account. For example, if you will be paying electronically, look for an account with a low fee for electronic transactions. If you receive lots of cash and cheques, you should look for an account that offers low fees to pay in cash.

We recommend that you compare the following when searching for business bank accounts:

• Any additional fees when you pay cash into the account?
• The location of your local branch, is it convenient?
• Do they provide start-up support, such as business mentors or free accounting software?
• What is the cost of a business bank account, are the fees relevant to your business requirements?

It is always worth comparing business bank account reviews, as they will give an honest insight into the service. If you regularly use business banking apps, the design and ease of use can vary significantly between banks. By understanding the individual business banking reviews, you may find that it is worth paying slightly more for an account. Especially if it means you benefit from great online account management.

How to switch a business account

There are a variety of business accounts available, which are designed to meet your specific business bank account requirements. If you decide a business bank account fits your business requirements, it is possible to switch in just 7 days.

Comparing and switching personal current accounts has led to an increase in competition, which has encouraged more people to compare. However, there is less publicity relating to switching business accounts. Although, the process is designed to be simple, so you will be free to concentrate on running your business. Simply make sure that the businesses you work with are aware of your new account details.

To speed up the process, it can help to have the following information to hand:

• Your Companies House registration number, if you have one
• Details about your business income, turnover and capital
• The name, date of birth and addresses of all directors or partners
• Proof of identity, such as a passport or driving licence
• Proof of address

If you decide to switch your business account, you will be covered by a 7-day switch guarantee. This means you can quickly close the account without any expensive charges.

If you have found a great business bank account, it is still important to compare other options each year. The benefits, charges and types of accounts offered change regularly, so it is worth comparing your business banking on an annual basis.

Compare today and benefit from the best business bank account!

Whether you are looking to open an instant online bank account or compare deals from high-street banks, we can help. We specialise in comparing business services, so we can assist with every aspect of your financial requirements. To find out more about our business comparison services, please contact our team today.

Need advice?

Whether you want advice or you'd like to apply for a business bank account, we're here for you.