How to Get a Business Bank Account
The most important thing for a business owner to get right is figures and finances. How many times have we watched Dragon’s Den and seen people collapse over their figures? And yet still so many people are making this mistake. So, it’s important to make certain you understand and process your finances and figures. There are a lot of things you’ll need to think about here. But, the bank is going to want to see evidence that you are likely to be bringing money in. They don’t want to trust you with a business account if the company is going to go bust in six months. This is generally going to be coupled with funding requirements as well. You should look into coming up with a spreadsheet that details your financial forecasts, as well as any funding you might need.
If applying for a startup account then they may simply ask for your projections over the next year – plus if you’ve already made any money. You’re better off guessing under than over; don’t tell them you’re going to bring in a million, get charged for a high turnover account, and then only bring in a tenner.
One of the best things you can do when you’re planning to open a bank account is to present your business plan. The business plan is your company’s blueprint for the future, and will contain details of any projected earnings you might have. It will show that you have structure in the business and that you are an organised owner. And this is going to help you a lot when you apply for a bank account – particularly if you’re hoping to get some kind of small business loan or finance.
Not all banks will want to see a business plan, but it’s certainly having one (just in case). This can also help you prepare your financials. Not sure how to write a business plan? This guide will help!
Getting a business bank account is not a difficult process at all. As long as you have the right ID and can prove that you’re “in business” then there shouldn’t be any issues. Remember, some banks will want to credit check you before they give you an account. This is especially the case for sole traders and partnerships. Make sure your credit rating is up to scratch before applying.
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