Best bank account for small start-up

[LimaDelta]

I have personal accounts with Lloyds and Barclays, but we are looking to set up a small business this year. Does anyone have any recommendations on accounts, preferably one which offers a decent advisory or accounting service as we are pretty new to this sort of thing?

[LimaDelta]

Guess that's a 'no' then.

[Whoozit]

I've had a Barclays business account for seven years. It was easy to open as I had a personal account.

I've not been offered any access to advice. For the accounting, you're better off getting recommendations for a local high street bookkeeper.

[Luke.]

Tide.

[Louis Balfour]

LimaDelta said:

I have personal accounts with Lloyds and Barclays, but we are looking to set up a small business this year. Does anyone have any recommendations on accounts, preferably one which offers a decent advisory or accounting service as we are pretty new to this sort of thing?

High street banks don't offer, as far as I know, advisory or accounting services. Generally, they struggle with the business of actually banking.

Depending upon what your business does, perhaps look at an app based bank like Starling. I gather they are cheap and efficient.

In terms of advisory, see if there are any free local business development organisations available. The local Chamber of Commerce may be able to point you in the right direction.

Accounting - for a start up I would not be looking for an accountant. I would look for a good book keeper, who will likely have a "pet" accountant for the more complex stuff. But decent book keepers can usually do most stuff a start up needs.

In terms of the two banks you mention. We've used both for business and personal. We binned one and are soon to bin the other.

[LimaDelta]

Luke. said:

Tide.

Louis Balfour said:

perhaps look at an app based bank like Starling.

I also use Revolut for all my EUR, but thought perhaps a bricks-and-mortar bank might be better for business use. I'll take a look at those two though.

[Louis Balfour]

LimaDelta said:

Luke. said:

Tide.

Louis Balfour said:

perhaps look at an app based bank like Starling.

I also use Revolut for all my EUR, but thought perhaps a bricks-and-mortar bank might be better for business use. I'll take a look at those two though.

As a start up you need to keep costs low, usually. The banking relationships that will offer any kind of advice are very expensive and you will need large sums under management.

UK bricks and mortar banks have, in my experience, long since stopped being of any use to small businesses - and we've used most of them at some point.

[Crook]

Luke. said:

Tide.

20p per payment transaction / no fee if you pay with card. That's the only cost. They have accounting software (limited and I don't use it) as part of their app.
I've been with them over three years - no issues.

They don't give advice. With the highstreet banks FWIU you need to be a larger account value holder to get an actual advisor these days. What advice they actual give I couldn't tell you.

[LeFredQuoi]

Starling Bank 100%, they have a great business bank. Easy to set up and use, check out the review online its the most highly regarded bank for Ltds.

[andyxxx]

Watching as I keep meaning to change to another bank.

Been with Barclays business for 25 years and they have gone from bad to worse. It’s Impossible to get an appointment with a manager within a month. Terrible call centre that is hard to get through to and useless when you do.

[andya7]

Lloyds do a free 'day to day' business banking for 12 months, then £7/month (providing that is the type of account you need).

They also have Lloyds Business Accounting, which works for me. I am sure it doesn't do 'everything' but as a small start up it should be suitable.

It is free for 3months then £5/month. You can raise invoices/quotes/etc and it links to you business account and then you tally everything, allocating it to relevant in/outs. After a while it seems to 'learn' regular payments (i.e. wages, charges, etc.) and 'auto populates' for you to review.

I am sure there are far better accounting software packages, but for a small (not vat registered) business I went through a few of the smaller 'free apps' (invoice to go, etc.) but they then either chose to charge of simply disappeared. Hopefully Lloyds aren't going to disappear...

[22s]

I've used Starling and Revolut, and tried to use Tide and Barclays.

I prefer the UX of Starling as I have a few businesses and a personal and joint account with them, so easy to flick between.

Revolut is good too and fine for a single business. Probably better if you trade in multiple currencies. Their payroll feature is pretty slick too.

Tide I couldn't get set up with - woeful customer service (this was a few years ago, though) - and ditto with Barclays.

Unless you're dealing with a lot of cash payments, I don't see the advantage of a legacy bank.

[OutInTheShed]

LimaDelta said:

I have personal accounts with Lloyds and Barclays, but we are looking to set up a small business this year. Does anyone have any recommendations on accounts, preferably one which offers a decent advisory or accounting service as we are pretty new to this sort of thing?

I would say, if you think you need advice from a bank, then don't go into business.

Over the years I've had free business banking from various smaller banks.
As a small business they provide a basic service in return for you being in credit.

There are loads of places for advice, depending on what line of business.

[plenty]

Another vote for Starling. Great app, decent customer service, integration with most accounting software and unlike Tide no fees per transaction.

If you can find a bank that offers accounting software bundled with an account that might save some money. Note that accounting software is not the same as an accountant. No bank will do the job that an accountant does. And many accountants also offer bundled software subscriptions as they get discounts for multiple licences.

[JagYouAre]

My wife also uses Starling for her small business banking and it seems great. I think it's free, and you can link accounting software (Xero, Freeagent etc.) to it. Definitely worth a look. We also have Starling for personal banking and I've been very pleased with it in general; although it doesn't offer some of the bells and whistles you might get with others, for simple banking needs it's hard to beat.

[Rob_F]

Starling linked with an accountant who uses Freeagent has worked really well for us.

[MisanoPayments]

I said the below earlier in a similar thread on the Business forum:

MisanoPayments said:

I use Starling for my company bank account (NOT my client-segregated accounts, I hasten to add - that's all separate, different bank). Have also just opened Starling for a personal account in order to take up one of their "connected" cards to give to the childcare. Not needed them much, but their in-app chat facility has been fairly good when I've needed to use it.

[HammyHamster]

Another vote for Starling - we've used them for about 18 months and very happy.

[jgrewal]

+1 for Starling - all free and easy set up

[Ari]

andyxxx said:

Been with Barclays business for 25 years and they have gone from bad to worse. It’s Impossible to get an appointment with a manager within a month. Terrible call centre that is hard to get through to and useless when you do.

Agree with this 100%!

If it weren't for the aggro of getting all clients pointed at a new account I'd ditch Barclays like a shot!