If you’re self-employed as an entrepreneur, freelancer or contractor – whether that’s a full-time venture or a side hustle, you may need a business bank account. It provides a smart way to organise all your business money matters and separate them from your personal finances. Kate, a guest banking publisher, has written this informative guide to help students and graduates who are starting a business, to choose the right bank account.

Photo by Austin Distel, Unsplash

Starting a business as a student or recent graduate can be an exciting endeavour. As you embark on this entrepreneurial journey, one crucial aspect to consider is choosing the right business bank account. A dedicated business account not only helps you manage your finances effectively but also presents a professional image to your clients and customers. Here are some key elements to consider when selecting an account for your new venture.

Business bank account features & fees

When choosing an account, it’s important to look at each option’s features and fees. You’ll probably want an account that offers online and mobile banking services so you can manage your finances on the go. Make sure you compare monthly maintenance fees, transaction fees and any additional charges like overdraft fees or international payment fees. You’ll need to think about your expected transaction volume and how your chosen account aligns with your business’s financial needs.

Eligibility & documentation

Before opening an account, ensure that you meet the eligibility requirements for your chosen bank. Some banks may have specific criteria related to business type, turnover, or company registration status. Prepare the necessary documentation, such as proof of identity, proof of address, and company registration documents, to make the account opening process as easy as possible.

Integrations & tech

We live in a digital age and banking technology can make a big difference in how your business manages its money. Lots of business bank accounts have accounting software integrations, such as Xero or QuickBooks, which automate bookkeeping tasks and streamline tax obligations. Seamless integrations with payment gateways and invoicing tools can also boost your business’s efficiency.

Overdraft facilities & credit options

Having access to overdraft facilities or credit options can provide financial flexibility for your business. Consider whether you may require short-term borrowing for cash flow management or investment opportunities. Compare the overdraft limits, interest rates, and fees offered by different banks to ensure you have the right financial support when you need it.

Business support & services

Choosing a bank account that is designed for small businesses and startups will be a real advantage when you’re starting out, especially as a student or graduate. Look for features like business planning tools, educational resources and networking opportunities. Some banks may also have specialist advisors to help guide you, but bear in mind this may come with a fee attached.

Choosing the right business bank account

Choosing the right business bank account is a critical step for anyone starting a new business. Take your time to consider what you need from an account and how it can best support your growth. Make sure to browse existing guides that compare all the different products on the market, to ensure you select the best business bank account for your needs.

 

About the author

Kate Anderson is a deputy editor at Finder, specialising in fintech, cryptocurrency and banking. She has previously written for The Motley Fool UK and Fitch Solutions, where she covered a wide range of personal finance topics and kept a close eye on market trends. Kate has a Bachelor of Arts in Modern History from the University of East Anglia. When not working, she can usually be found curled up with a good book or heading out for a run.

 

Find out more:

Business bank accounts
Find out if you need a business bank account for legal reasons, the benefits, how to choose the best option, how to open an account & use it effectively

Do I Need a Business Bank Account? – Nerd Wallet
Legal requirements for different business structures, benefits of using a business bank account & what to look for when choosing an account

Self-employment
Types of self-employment, pros & cons of working for yourself. Tips, tools & useful resources for practical help & advice