In the wake of the recession and the finger-pointing at lenders that ensued as a result of it, it’s easy to cast banks as the pantomime villain. However, we can’t live without them and, especially in business, it makes sense to form a good relationship with the people looking after your money.
Banks are keen to help businesses too, with many offering 18 months or so without a fee during the early stages of your relationship with them. Hopefully, the bond between banks and enterprises is only set to flourish further with the recently revealed news that Vince Cable, the Secretary of State for Business, Innovation and Skills, is pushing ahead with the British Business Bank scheme to encourage lending.
Whether you’re looking for a first account for your startup or you’d like to switch a longstanding business over to a new bank, here are some tips:
1. Communication is key
The days may be gone where the local bank manager was a pillar of the community who would recognise every account holder in the village, but banks are still very approachable on a face-to-face level. You may need to book appointments in advance, but banks are keen to show their human side as they seek to gain our trust, and are particularly happy to have a chinwag with entrepreneurs.
If you don’t fancy getting that personal, or don’t have the time to put aside during nine to five hours, most banks are approachable by phone or online. With modern internet chat functions, the banker on the other end tends to be a real person rather than an automated system that will just direct you to the bank’s FAQ section.
2. Look at charges at more than face value
It’s easy to be put off by high transaction fees and monthly charges, but you should consider how they suit your particular business model.
If you depend on lots of small transactions, you might want to do a bit of a calculation and work out whether what seems like a high monthly fee could actually be less expensive than many individual transaction charges.
3. Ask for advice
It’s worth seeking the opinions of financial experts on which bank and account type could get you the most mileage for your money. By using a professional outsourced accounting solution, you can benefit from strong, independent advice on the matter.
Of course, with the time and effort saved through outsourced accounting services, small business owners can dedicate more hours to decision-making on how to drive their firm forward.