If you’re running a business, one of the most important first steps is to set up your bank account so that you can receive money! In the digital age, an online bank account offers a ton of benefits. Let’s take a look and break down some of the best online bank accounts to consider for your business.
Benefits of an online business bank account
As soon as you start accepting or spending money as your business, you should open a business bank account. Common business accounts include a checking account, savings account, credit card account and a merchant services account. Merchant services accounts allow you to accept credit and debit card transactions from your customers.
There are many reasons why you would choose to use a professional business bank account online:
Business banking offers limited personal liability protection by keeping your business funds separate from your personal funds. Merchant services also offer purchase protection for your customers and ensure that their personal information is secure.
Customers will be able to pay you with credit cards and make checks out to your business instead of directly to you. Plus, you’ll be able to authorize employees to handle day-to-day banking tasks on behalf of the business. All of these tools are essential not only to your operations, but to your brand image towards your customer that you have everything they need.
Business banking usually comes with the option for a line of credit for the company. This can be used in the event of an emergency, or if your business needs new equipment.
- Purchasing power
Credit card accounts can help your business make large startup purchases and help establish a credit history for your business. As you establish better relations with your online banking institution, you will be able to leverage this to more purchasing power moving forward.
4 Best options to open a business account online in the UK
Opening a business account online can be faster and simpler than visiting a local branch and submitting an application. All you need to do is fill out the appropriate information on their website or mobile application.
Let’s take a look at some of the preferred online business account services in the UK:
ANNA is a great option for small business owners for UK citizens. Not only are there automatic reminders for due payments from customers or VAT taxes, but their pay structure is set up so that you only pay for what you need. You can start with a free business account if you’re transactions total under 500£ per month, or pay as little as 19£ per month for transactions ranging up to 500,000£.
Monzo is one of the newer arrivals to the online business banking scene. This does not in any way limit the scope or quality of the tools available. Not only do they have integrations available with most of the large payment processors and CRM’s, but they have a range of payment options to satisfy any business. Interestingly, you can only use their business service if you have a personal bank account, so this might allow you yo find some savings with your personal business needs along with those of your business.
3) Starling Bank
Starling Bank is a bit more traditional in the sense that it is more geared towards established businesses. Only those operating for at least 18 months are eligible to apply, but this prestige allows them to offer more developed services such as credit lines and overdraft. If you’re looking for a more enterprise solution, they have integration partnerships with heavy hitters such as Quickbooks.
Revolut is an interesting option for those working internationally. One of the best benefits here is that you can hold currency in over 20 denominations without needing to pay exchange fees. They offer services as small as free to enterprise solutions, making this an ideal solution for businesses of all sizes.
Now that you have a glimpse of the benefits of having a business account online make sure before applying, you will want to compare other business account options and consider factors such as monthly fees, transaction limits and others that will fit your financial needs. Whether you prefer to open a business bank account online or in person, you can streamline the process by preparing documentation ahead of time and following the instructions thoroughly.
- Retrieved May 25, 2022 12 Places to Open a Business Checking Account Online – NerdWallet
- Retrieved May 25, 2022 Open a Business Checking Account Online: 7 Best Options (fundera.com)
- Retrieved May 25, 2022 10 Best Business Checking Accounts of May 2022 – NerdWallet
- Retrieved May 25, 2022 7 Best Business Checking Accounts for an LLC (bestllcservices.com)
- Retrieved May 25, 2022 Do You Need a Business Bank Account? | Business.org
- Retrieved May 25, 2022 Open a business bank account