Getting your clients the most from their bank accounts
Sometimes, seeing to your clients’ needs as an accountant can be a tricky task. It can be a challenge ensuring that they are offered the very best of what’s available, especially their business bank account.
Lenders are always looking to reduce risk incurred on their side when dispensing large lump sums. While looking for ever more creative ways to reduce the risk to themselves, many look favourably upon business owners with a dedicated business bank account.
For sole traders, allowing them to use their personal bank account may be cheaper in the long run. However, for limited businesses, setting up a business bank account can be a mandatory requirement. After all, lenders want to be sure that your client can afford the monthly repayments. But how do you get the best account for your client? Here are few tips from the finance boffins at Rangewell.
A growing number of banks are charging their customers monthly fees. Usually, these fees can be upwards of £5 to £10. However, some banks may offer new account holders an introduction period where, for example, they may get 12 months of business banking free. However, be sure to take note of what the fees are once the period expires.
With some business accounts, your client may be charged if they carry out an in-branch transaction or pay in cash and cheques. If your client prefers in-branch banking this can create a hefty expense. However, some banks may offer your clients a fixed number of monthly in-branch transactions before they’re eventually charged. If you have a client who’s an online-banking sceptic, searching for an account that offers the greatest number of free transactions can save them a fortune.
Needless to say, searching for an account that offers a decent rate of interest is highly advisable. It’s a great way for your client to earn money purely for having money sitting in their account. However, finding a decent interest rate is no small task. With most banks offering rates between 0.1% and 0.25%, you’re now having to balance it out with what other perks the account may also offer.
Encouraging your clients to make use of online banking facilities can help save them money in the long run, as well as time. Sure, it can be difficult attempting to convince the sceptical of the benefits of online banking, but it really can help them escape those pesky transaction fees.
To attract clients, banks may offer a number of potentially useful perks. To try and stick the cherry on top they may, for example, offer free use of their online business community spaces, allowing your client to showcase their business. Perks could be anything, but it’s important that your client puts them into perspective, and for you to consider which is the most compatible to their banking behaviour and business’s needs.
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At Rangewell, we support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.