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Downsizer Forum Index -> Small Business Questions, Ideas and Advice

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Harvestmouse

Joined: 05 Jan 2011
Posts: 23
Location: A muddy field in Devon

Posted: Tue Jan 11, 11 12:54 pm Post subject: Business Banking

Does anyone know if I have to have a "business" account if I plan to start up a small business as a sole trader? It will never be big bucks, but I want something separate from my personal account, but I'm amazed at the charges you can incur in business accounts for transactions. I'd never accept paying that for a personal account.

Do you know if any banks accept sole traders having a normal personal type of current account that is named as a "trading as" account?

Brownbear

Joined: 28 May 2007
Posts: 14929
Location: South West

Posted: Tue Jan 11, 11 1:02 pm Post subject:
Even a Fred Jones t/a Jones's Electric Trousers is a business account. Keep using your personal account until they find you out is my advice.

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Tue Jan 11, 11 1:44 pm Post subject:

Get with the right bank and you will never have bank charges, and I'm not just saying that because you get �50 if you refer someone. I have been with HSBC since I left school 14 years ago and have had very little reason to complain - they even rang me up to change my tariff to one that wouldn't cost me anything! Nat joined them (business wise) earlier this year and she is very pleased with having a real person in branch to work with.

Mrs R

Joined: 15 Aug 2008
Posts: 7202

Posted: Tue Jan 11, 11 2:02 pm Post subject:
Yes, HSBC = brilliant. I put off getting a business account because I thought it'd just be expensive and complicated - in fact it's free and has tidied everything up and will make doing tax and stuff 100X simpler. I'm even confidently and effectively using my business credit card, and I'm delving into the potential of my new 'business money manager' account very soon....

T.G

Joined: 13 Sep 2009
Posts: 7280
Location: Somewhere you're not

Posted: Tue Jan 11, 11 2:34 pm Post subject:
the FSB have a banking service that appears, on the surface at least, free. https://www.fsb.org.uk/FSB-business-banking

Katieowl

Joined: 01 Jun 2006
Posts: 4317
Location: West Wales

Posted: Tue Jan 11, 11 2:38 pm Post subject: Re: Business Banking

Nutroast wrote:

Local bank told me lots of people with small business here have just a second personal account to keep everything seperate, and they are quite happy to let them do that. I shouldn't imagine for one moment it was company policy! But obviously they see the sense in keeping micro business customers happy! It's the bank with the black horse.

Kate

Lorrainelovesplants

Joined: 13 Oct 2006
Posts: 6521
Location: Dordogne

Posted: Tue Jan 11, 11 2:47 pm Post subject:
We have an HSBC business account but its only free for 1 year. When this is up we plan to move to the COOP because i beleive its free business banking.

Barefoot Andrew
Downsizer Moderator

Joined: 21 Mar 2007
Posts: 22780
Location: In the 17th century

Posted: Tue Jan 11, 11 3:15 pm Post subject:

Generally, a separate personal account for business purposes will be fine if your monthly transactions are a low number of tens in number. If your credits and debits are consistently high each month, this will attract their attention and they may insist on a formal business account.

Another issue is that it will only be possible to write cheques to you as the account holder, not cheques to your trading name. If you need to accept cheques in the name of your business, a formal business account will generally be a requirement.

I second Rob and Nat's comments above about HSBC business banking being reasonable and effectively free for small businesses. I have a minor dispute in progress with my bank, but this doesn't preclude service being good and good value prior.

A.

earthyvirgo

Joined: 24 Aug 2007
Posts: 7972
Location: creating prints in the loft, Gerlan

Posted: Tue Jan 11, 11 3:34 pm Post subject:

Having listened to Bob Diamond spouting this morning, I wish there was a way I could withdraw what little money I have from my bank and have nothing more to do with them until they start behaving like responsible human beings (ha, ha, how likely is that?

)

I could hardly believe my ears when he claimed to be *sensitive* the the situation.

Vegplot and I were discussing this the other day and I naively asked how anyone with a conscience could consider taking an �8m bonus when the man in the street is having to cut back left right and centre.

How can these people sleep at night?

Mrs R

Joined: 15 Aug 2008
Posts: 7202

Posted: Tue Jan 11, 11 3:38 pm Post subject: Re: Business Banking

Katieowl wrote:

But obviously they see the sense in keeping micro business customers happy! It's the bank with the black horse.

Funny that because when I was with them with my first business they suddenly changed policy and seemingly culled all businesses with a turnover less than �75,000/yr. They pulled the rug from under our feet and that was that!

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Tue Jan 11, 11 3:52 pm Post subject:

Lorrainelovesplants wrote:

We have an HSBC business account but its only free for 1 year. When this is up we plan to move to the COOP because i beleive its free business banking.

Get them to change your tariff after the end of the year, it's only not free if you go outside of the terms of your tariff.

gz

Joined: 23 Jan 2009
Posts: 8916
Location: Ayrshire, Scotland

Posted: Tue Jan 11, 11 3:56 pm Post subject:
I still prefer Co-op to HSBC

Katieowl

Joined: 01 Jun 2006
Posts: 4317
Location: West Wales

Posted: Tue Jan 11, 11 3:59 pm Post subject: Re: Business Banking

Dances With Cows wrote:

Katieowl wrote:

But obviously they see the sense in keeping micro business customers happy! It's the bank with the black horse.

I don't think for a moment it's their policy generally! I suspect it's more to do with the area. Common sense which has dissapeared elsewhere seems to be alive and kicking generally here.

OH has astromomical charges with HSBC!! I suspect they have been keeping him 'in the dark' about a better account. He's still registered with his bank in London

Kate

Rob R

Joined: 28 Oct 2004
Posts: 31902
Location: York

Posted: Tue Jan 11, 11 7:09 pm Post subject:
Well it was the call centre that got me to change tariffs, so I can't see why anyone else shouldn't get exactly the same service. They ring me quite often to check everything is alright.

Mrs R

Joined: 15 Aug 2008
Posts: 7202

Posted: Tue Jan 11, 11 7:59 pm Post subject:
They do hammer you if you go overdrawn without 'permission' for sure...but you just need to stay on the ball, and the internet and telephone banking makes that easy peasy

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