The difficulties of getting a business bank account have been highlighted during the pandemic, with many smaller businesses struggling to get even a basic account set up as they start their new venture
A recent BBC item showed how the UK’s main High St banks are failing to offer new customers the necessary banking services. One woman in Scotland who was trying to get her grocery business started found every application for a basic business account turned down.
“It is literally impossible to start a business if you can’t process cash flow through a bank account, take card payments and run books through connected software,” she said.
“There will be a lot of people, like me, who are looking to put savings and redundancy funds into new ventures in an environment where it is more or less impossible to find a job.”
For its part, the Federation of Small Businesses (FSB) said the problem endangered a whole new swathe of businesses from even leaving the runway. “We appreciate banks were swamped with bounce-back applications, but refusing to open business accounts for new customers will stifle start-ups just at the moment we need them most,” Mike Cherry, FSB national chairman said.
“We need to see those who are starting-up and seeking to open a commercial account and those who are established and seeking a bounce back, given guaranteed routes through which they can make applications that will be assessed swiftly.”
Getting the right business banking service is a vital – and sometimes overlooked – aspect of starting and growing a business. The UK banking landscape in many ways is a world leader – the fintech sector is booming, for example – but for some new companies, it can be a complex and frustrating process.
The team at Paul Beare Ltd includes several former senior banking employees that fully understand the ins and outs of the system: what documentation you will be expected to provide, what time frame the banks typically work to, and how to avoid the mistakes that can lead to frustrating hold-ups and delay.