Since the economic recession, job security has been reduced dramatically in a huge range of industries. For this reason, many people are turning their hand to running their own business or becoming self employed. Those that are doing this are likely to need a business banking account. Of course, there are premium facilities that can be paid for by the business owner, but there are also plenty of providers offer free business banking facilities as well.
What business owners will find is that banking service providers will always promote their premium services, rather than their free services. So it might take some time and some research to figure out which banking providers offer the free services and then, which ones are the best. www.freebusinessbanking.org.uk helps business owners by offering them some options when it comes to free business banking facilities. This helps to reduce the time spent when it comes to research, allowing these people to focus on making their business a great success.
Applying for these accounts is incredibly easy. Even businesses with no credit history, maybe due to the fact that have recently been set up, will be able to apply and be accepted for an account. The majority of service providers will provide basic facilities such as telephone and internet banking. The more complex providers may even offer their customers the chance to take advantage of an overdraft facility, which can be incredibly useful when it comes to contributing towards start up costs.
Although there are plenty of banks that offer free business bank accounts, only a select few will allow people to open them online. Time means money, so setting up an account as quickly as possible is going to be extremely important. It is worth noting the terms and conditions of the service when applying online or in branch. Many of the free bank account facilities will automatically switch to a standard business banking tariff after the free period. For those that still want a free account, they can prepare and switch over all of their direct debits to a new, free account.
All of the big names in the banking industry will offer free banking facilities. Be under no illusion that there plan ends with a free account though. The idea is to get consumers to switch to a paid facility in the future. The big name providers that offer accounts include Santander, Lloyds TSB, Barclays, HSBC and the Royal Bank of Scotland.
As the free period of banking is basically an introductory period for business owners, it is worth comparing different providers. Some providers may offer a free service for just a few months, where as others might offer a free period extending to a year or more. Obviously the idea is to pick the provider that offers a long period of free banking, which will help to reduce the costs of the business. Remember, it is not just the period of the “free banking”, but also the charges that are incurred. The percentage fees for charge backs and online banking can vary, which can quickly make a free business bank account an extremely expensive one!