Small businesses that have been with their bank for a while might not be getting the best deal on interest rates, overdraft charges and account costs, so compare the costs of various business bank accounts from a variety of different financial institutions. Some banks will offer you free business banking for a period of time when you switch or set up a business account with them, so see if you can use this to save your organisation money on its banking fees.
Challenger banks are modern banking institutions that are designed to challenge the domination that traditional banks have over the banking market. Often, challenger banks offer a purely online and over the phone service, without any branches. You might think it’s important that your bank has multiple branches across the country, so you can nip in whenever you feel like it, but the reality is that you might get a better deal by working with a challenger bank such as Monzo, Tide and Starling Bank. Because these banks have no physical branches, they might be able to offer a better deal because it doesn’t have to pay the costs for a physical base and the staff to run it. These digital banks will also offer you better technology platforms as this is what they’ve built their entire service offering around. Whilst there’s no guarantee that a challenge bank will give you a better deal on the services you need, it’s important that you don’t dismiss them in favour of a traditional bank simply because they’re all you’ve ever known previously.
Small business leaders need to take the time to explore all the benefits that their bank can offer them so that they can make the most of every opportunity. It’s a tough world out there for small companies, so you need to try to find every beneficial solution you can. Using these tips should help you to see the broad spectrum of benefits bank accounts can offer to small businesses, but to really understand what’s on offer you need to talk to your bank and learn what they’re able to do for you and your company.
© 2020 All Rights Reserved Ella Woodward