So, you’ve taken the plunge and started a business – congratulations! Whether you transformed your side hustle into a real venture, or finally decided to share your big idea with the world, it’s important to keep all your business money matters in order. Opening a dedicated bank account is a great start, but why do you need a business bank account? Here are ten food-for-thought reasons:
It’s important that your customers and suppliers feel safe and secure using your business. By making payments to and from a business account instead of your personal one, they’ll feel more comfortable straightaway.
2. You’ll need it to apply for loans and credit
Some banks won’t lend you money for your business unless you have a separate business account. So if you think you’ll need extra funds for getting started or scaling up, it’s best to get a business account up and running.
In the same vein, there are banks that won’t let you accept business payments to your personal account – especially if you’re starting a limited company.
4. It helps keep your books in order
No one actually likes using spreadsheets, do they? With a business bank account that’s separate to your personal account, you won’t have to spend hours working out what you’ve spent through your business.
By keeping your accounts separate, then your personal assets, like your house, can’t be taken if you get into debt through your business – as long as you’ve set up as a limited company.
With separate bank accounts it’s much simpler to see how much tax your business needs to pay.
7. You can sync your software
If you use accounting software to help manage your finances, you could use open banking to connect it to your business bank account – saving you time, as everything will sync up automatically.
The higher your credit score, the easier you’ll find it to get business loans, credit and insurance. If your personal score isn’t strong, keeping your business finances separate will give you a much better chance of getting hold of the funds you need to grow.
9. You’ll have business-friendly transaction limits
Busy small businesses need to make endless deposits, withdrawals, transfers and payments – and some banks have a limit on how many and how much you can do in a short space of time through your personal account.
With a business bank account, you’ll usually get a new debit or credit card. This means it’s harder to get mixed up when you’re whipping out your personal card to pay for after-work drinks.
So, there you have it. It’s definitely a good idea to get a business bank account up and running, and sooner rather than later if your business is already in full swing. Still have a few questions? Pop in store and one of our Local Business Managers can help – they’d love to tell you more about our business banking and help you on your journey.
Or, you can open our Business Bank Account right now – it only takes a few minutes online.