One of the first things you must do when starting a new business is open a bank account for your business. You will have to consider several things including transaction and borrowing costs, what facilities the bank offers, and the type of relationship you want with a bank. A business account is essential if you are setting up a Limited Company or Partnership. While you can use your own personal account if your business is a sole proprietorship, it is advisable that you have a separate business account to manage your business finances.

Now that you are aware that you have to open a bank account, how do you go about it? Can you use the same bank that you use for your personal accounts? Of course, you can! But they may not offer the best deal for your business. The considerations for opening a business account are quite different from a personal account - you could be missing out on lower charges and higher interest on a credit balance. Over a long period, you could be depriving your business of a significant amount of money. Before you sign up with anyone, look around and understand what’s available out there.

We’ve put together the 5 most important factors to consider before choosing a bank account:

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