Do I need a separate business bank account?

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If you are a limited company then you must have a separate bank account set up in your limited company name.  When you set up the account you will need a copy of your incorporation certificate.

Most banks offer the option to open a dedicated business bank account. You will also have access to business related financial products like loans, credit cards and overdrafts. These are a help as your business needs change, whether that’s paying for everyday running costs or investing in your scale-up plans.

As well as keeping your business finances separate from your personal finances, some business bank accounts include additional services like budgeting tools, account management and integration with accounting software.

Some things to consider when you are looking for a business bank account;


Is there an offer of free banking for new accounts?

Research the full range of business bank account options available and compare introductory offers. Include high street banks as well as online-only banks. New businesses usually get a charge-free period.

A handy guide for 2022 UK business accounts can be found here.


Is there an overdraft facility?

Having an overdraft facility can be very useful. Especially as cash flow is one of the main reasons that businesses go under. This facility is not always available especially with digital-only banks.


Will you have a business relationship manager?

Having a person on the end of a phone or to answer your Emails who understands your business can be helpful, especially if they can also make lending decisions. Always better than a call centre where you always speak to someone different and they can only tell you what their computer says!


What mobile banking and online services are offered?

One of the effects of the COVID-19 pandemic has been to drive us all to online and mobile banking. However, the user experience of high-street banking apps varies wildly.


Is it online only or does it have branches?

Digital banks have no branches at all, which can be frustrating if you have cash or cheques to pay in. Consider your type of business and whether you would need to make use of such facilities. Many banks now offer the facility to pay in cheques by scanning them and not having to go into a branch. If however they don’t have this facility and you will have cheques to pay in, is there a branch near you.


How long does it take to open an account?

It usually takes between one and four weeks to open a business account, as the bank will need to carry out checks to confirm your identity, business and any directors registered to your company. This may be quicker if you are already registered with the bank with a personal current account.


Does it offer unlimited transactions?

Some business bank accounts only allow you to make a certain number of transactions each day. Other banks only allow one or two methods of making deposits or withdrawals. Best to go for a bank that allows unlimited transactions, as well as online and in-person credits and withdrawals.


Is there a direct feed to your bookkeeping software?

If you use a bookkeeping software, like Xero, look at the banks which have direct feeds with your chosen software.  One of the major benefits of online software is having the bank feed with your chosen bank, so ensure your bank connects (and the feed is stable and reliable) before you open the account.

This is a good link to compare bank account services/packages here.


Personally we love to work with Starling Bank  – not only are they a great bank, with great customer service, their accounts are easy to set up, they also have no fees for day to day banking, and the bank feed works really well with Xero!


Interested in working with us? Head to our Get Started page to book in a discovery call.