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Advice For Business Banking

Dec 24, 2007
When you are applying for a business bank account there is certain information that you must have with you when you first meet your account manager. You must give a representation of the type of business you are running and the business activities you will be undertaking.

Also it is required to give information on where the funds came from to start your business, whether it be from yourself or a group of investors. This allows the bank to assess where your business is in terms of development and define the stability of your finances.

Most bank account managers will also ask to see a business plan; this should contain an overview of what your business does, what it's immediate and long term objectives are and the strategies it will use to pursue these goals. A business plan must also contain accurate financial forecasts and a clear indication of what market the business will be in.

Bank managers do this to get a good idea of the direction of your company but also use it at a later date to measure the level of success your company has experienced.

When you meet the bank account manager you must also have with you a few mandatory documents. Firstly passports and driving licences of yourself and any other partners, these are required by law to prevent illegal money laundering activities.

A certificate of incorporation that all limited companies must possess as well as credit history and previous bank account details are also required. Finally a list of signatories (the persons who use the business account) and examples of each of their signatures must be supplied.

Once all this information is collated by the bank they can open the account, to keep them on side you should remember a few fundamental rules of commerce. Make sure the account is not allowed to go overdrawn without prior arrangement, never exceed an overdraft limit and stick to the account's terms and conditions.

Managing your business account involves keeping a written record of all transactions made whilst retaining and studying all statements received. A great way to keep track of your finances is to compare in detail the transactions in both your business records and your statements. Making sure that those with access to the finances are accountable to the company will also help to keep the bank account in check.

Something worth remembering is bank charges, information will be provided by the bank on all charging policy but it is advisable to fully understand the details. Charges are usually taken monthly or quarterly with advance written warning from the bank, ensure that you check all charges and bring up any disputes you may have in good time.

If you feel large amounts of written correspondence will not inspire you to stay on top of your account situation, online banking is a worthy alternative. Being far more efficient it allows you to check balances instantaneously and move payments between accounts at the touch of a button.

It also makes it easier to set up direct debit payments, order such things as cheque books and statements and download account details for your own records. Online banking offers a cost effective approach to account keeping, often with lower charges and higher interest rates at no extra cost to your business.

Opening a business account may seem a daunting task but as long you can put together an accurate business plan and collate the information you need it can be simple. Banks are there to help and are often supportive to your business needs; just remember to keep them on side by informing them of changes regularly and staying in credit. You will find if you treat the bank with respect your business will have the financial support it needs to succeed.
About the Author
Shaun Parker is an expert in commerce and understands the procedures involved when opening a new business bank account . To find out more please visit http://www.lloydstsbbusiness.com/
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