Product Description
Business current accounts are very like normal current accounts in that they allow you to deposit and withdraw money day and night, make payments and take payments from customers and earn interest on your money when you account is in credit. These accounts have a range of additional features as well though which vary from one provider to another.

Main Players
Most of the major banks and building societies offer business current accounts and the one you choose will depend on the account features you require. Some of the more popular providers include Abbey, Barclays Bank, Alliance & Leicester, Bank of Scotland and HSBC.

Pros of Business Current Accounts

• Business accounts allow you to keep your business finances separate from your personal finances.
• These accounts offer a range of facilities to help business owners including internet and phone banking, dedicated advisors, overdraft facilities and free transactions.
• Business owners can easily see what their balance is, what they’re owed and what they still need to pay out by using the special bank account add-ons offered by some providers.

Cons of Business Current Accounts

• Very few of the business accounts on offer provide all of the available facilities i.e. some offer one range of facilities while others offer a different range, most of which are needed.
• Most account providers charge for excessive transactions and this can prove to be expensive for some businesses that have a lot of minor clients.
• A lot of business account providers charge for the privilege of banking with them. Some offer free banking for the first year or two but then standing charges are often introduced.

Things to Consider when Choosing a Provider
Each of the providers will have their own range of business accounts to choose from and it’s important that you choose the one that has the facilities you need and nothing else. Most new businesses just need the facilities to enable direct debits, standing orders, credits, payments coming in and a nice big overdraft. Anything more may mean that you have to pay for your business banking and if you never actually use the additional facilities then they’re just a waste of money.

Decide what it is that you need from your business current account and search the market for the products and providers that meet your requirements. The BUYability comparison engine can do all the hard work for you so it’s worth trying it out. You should also choose an account that is accessible online and in branch and if you can find a provider that offers professional business banking advice then so much the better.

BUYability Summary
All businesses, whether big or small, should have a business current account through which they manage their finances. The last thing you want to do is get your business money mixed up with your personal finances so we recommend opening a basic account as soon as possible after establishing a business. They can offer many more features than normal current accounts and you can often get professional banking advice as well.