How to get the most out of your bank

For the owner of a company who needs to keep their personal and business finances separate, the banking marketplace can seem like an Aladdin’s Cave of business banking offers. But are they really as great as they make out?

Maybe, maybe not. But what is certainly true is that if you carefully construct a list of your required banking needs, it will enable you to approach a bank and ask it if they can tick all the boxes presented. One of the most important is that the bank is transparent and upfront with its tariffs and can demonstrate that there are no hidden charges or that extra fees for certain services are clearly advised.

At the moment every bank is fighting a numbers game to attract new customers, increase its market share and, of course, retain its existing customers. So it is a buyer’s market out there and the best way to exploit that is to ensure that you know what services you want, what they will cost and what added value the bank will offer for you to become one of their valued new customers. So don’t think that making a checklist is a little primary when dealing with the bank. It is your prime bargaining tool. In other words, can they tick all the boxes and what extra will they offer?

The questions you should ask the banks will depend on what’s important to you and your business, but below are a few ideas to get you started:

• Do they offer free day-to-day banking such as direct debits, standing orders, BACS credit and transfers between same bank linked accounts and, if so, for how long?
• What is included in the offer and what are the monthly transaction limits, e.g. for deposits and withdrawals?
• Do you have to keep a minimum balance in the account?
• Is there a monthly charge for the account?
• Can you access the account and pay money over the internet, telephone, branch, cash machines or post?
• Will you get access to a business relationship manager?
• Is it possible to add other users to the account?
• Will you be offered a business debit card?
• Do you automatically get an overdraft facility and if so, at what level and cost?
• And, of course are there any hidden charges?

This will help you to determine the true costs of banking to your business on a monthly basis. If the basics are offered free, you will be able to calculate what savings are to be gained. For example, many of the above are free to Abbey business customers and they could be an ideal account for small business owners.

The good news for businesses is that banks cannot afford to be just money merchants. They need to offer more than just excellent banking services. This means your business could also look for the following from your chosen bank: business mortgages, business insurance, business tips and advice, help with your personal finance and, probably the one most important factor of all, taking a keen interest in understanding YOUR business.

If you use it right, business banking does not need to be thought of as a necessary evil and a drain on resources. On the contrary, it can be a business partner that is there to help you create financial and business success by nderstanding your goals and objectives.