Lisa’s business banking experience and advice
I set up my business account with the bank that I did because they offer a good free period of business banking- most banks offer start-up business a free period of business banking of around 18 months or 2 years. But after that I was paying 35p for every transaction. This was a problem as I want to keep all my business transactions through the card as every purchase through the company can have positive VAT implications. This meant that my transaction fees became about £60 a month. I have therefore just switched to another bank which is charging a fixed fee of £6.50 per month, making electronic transactions significantly cheaper, but banking a check or cash, which I rarely do, costs £1.50 per transaction.
If you are banking you need to think about how you are going to be taking payments, depositing those into the bank, using the account, and monitoring all your outgoings.