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The Benefits of Opening a Business Bank Account

21 May 2019

No matter whether you’re a start-up or an established business, you’ll need to set up a business bank account. A business bank account offers a whole host of benefits that play a vital role in the success of your business.

Business Bank Account and the benefits of

Business Bank accounts are similar to personal bank accounts in the way in which they let you pay money into the account, transfer money to other accounts, make payments on a debit card, and set up regular payments.

Having a business bank account enables you to keep your business finances separate and keep track of your transactions. By having a separate account for your business transactions, you and your accountants have full visibility of your income and expenses. This is a huge benefit when it comes to filing your annual tax return. 

A business bank account also helps you to budget, and in turn grow your business. You can use your business bank account to view your cash flow, estimate future expenditures, and anticipate incoming revenue. By having this visibility you can start budgeting money that can be put towards the growth of your business.

Opening a business bank account is the first step in accessing a variety of other business finance options, such as overdrafts, business loans, business savings accounts and business charge cards. Applications are subject to status and T&Cs apply.

What you’ll need to open a business bank account?

In order to find out exactly what you’ll need to open a business bank account, take a look at this useful UK Finance guide that outlines what information you’ll need to set up a new account.

You will need to provide documentation that proves your identity, as well as confirming details about your business.

The documentation required will depend on the type of business you are as well as the type of business bank account you’re looking to open.

What makes our Business Directplus Account different?

Here at The Co-operative Bank, we offer a business current account called the Business Directplus Account. This business current account provides you with a simple and convenient way to manage your business finances.

If you’re a new customer to The Co-operative Bank, you’ll automatically get 18 months of free everyday banking. This is subject to maintaining a credit balance of £1,000 or more, and means that you can benefit from no monthly service charge, free standing orders, Direct Debit and Faster Payments, free debit card transactions, and you can also write up to 30 cheques and deposit £2,000 cash for free each month. You can find more information about the benefits for new customers here. Charges apply for exceeding the limits specified above, and for any special services used including stopping cheques, CHAPS payments, etc. Please refer to the Business Directplus tariff for full details.

You will also have the freedom to manage your money in a way that suits you. You can manage your Business Directplus Account using Online Banking, Telephone Banking and Postal Banking. You’re also able to use our network of Co-operative Bank branches, as well as the Post Office®.

We have been awarded Best Service from a Business Bank for the last three years in a row and Best Charity Banking Provider for the last four years in a row by Business Moneyfacts. But one of the fundamental things that make The Co-operative Bank different is the fact that we have always been driven by something different: an ethical approach to banking. It’s why we’re still the only UK high street bank with a customer-led Ethical Policy, so you know that you’re with a bank that shares its customers’ values.

It is our commitment not to provide banking services to businesses and organisations that conflict with our Ethical Policy.Just se To confirm that they comply with our Ethical Policy, we take all our prospective business customers through an ethical screening process.

We also offer a range of other business current accounts with different features and benefits which may also suit your business needs. If you’re interested in opening a business current account with us, take a look at our Business Current Account pages. Applications are subject to status and T&Cs apply.

Thinking of switching your Business Current Account?

If you already have a business current account but would like to switch to our Business Directplus Account, we offer the Current Account Switch Service. This is a free service that enables you to switch your business current account from any participating bank to ours in just 7 business days, once your account with us has been opened. It’s simple and stress-free, and the full switch option is backed by the Current Account Switch Guarantee.

The Co-operative Bank reserves the right to decline or accept any application.

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