Complete Guide to Opening a Business Account in the UK

A business account is an essential resource for any company. With dedicated features and cost-efficient transfer options, the right business account can transform your financial management, reduce your costs, and accelerate revenue streams.

However, not all business accounts are created equal and finding the right account for your organisation is essential. Here, we’ll cover the important things to look out for when you’re choosing a business account for your company and tell you everything you need to know about opening a business account in the UK.

Complete Guide to Opening a Business Account in the UK: What to Look For

Before you start applying for a business account, consider what features and functionality you need and compare different account providers to find the best solution for your company. Important things to look out for include:

Eligibility Criteria

First and foremost, you’ll need to make sure that your business meets the account providers relevant eligibility criteria. Some banks or financial institutions will only enable you to open a business account in the UK if your company is wholly based in the UK, for example. Checking the eligibility criteria in advance will confirm which accounts are available to you and streamline the process of finding the right account for your business.

Transfer Options

As a thriving business, you’re likely to have a high volume of incoming and outgoing funds passing through your business account. To ensure the account will fulfil all your needs, double-check what transfer options are available.

Choosing a business account that offers a wide range of international payment options will mean that you’ll face no barriers as you scale your business. With SEPA, TARGET2, and SWIFT international transfers, for example, you can send and receive funds to virtually any country in the world.

Multicurrency Transactions

When you’re trading globally, you’ll need to accept and/or send funds in various currencies. By choosing a multicurrency business account, you can avoid having to open multiple different accounts in varying jurisdictions and avoid the costs and complexities associated with making multiple cross-border transactions.

Instead, you can rely on currency-based subsidiary accounts that operate under the umbrella of your main business bank accounts. This acts as a centralised location for all of your transactions and gives you complete transparency and visibility over multicurrency transfers.

Fees

When you’re looking for a complete guide to opening a business account in the UK, you’ll encounter various fees that accountholders are subject to. In addition to monthly and/or annual account fees, for example, you’ll need to confirm whether your account will be subject to additional charges, such as transaction fees.

The charges associated with business accounts may be a flat fee and/or a percentage of a transaction, so you’ll need to consider your potential usage to determine which fee structure is most advantageous for your company.

While low fees shouldn’t take priority over features, functionality, and security, you can certainly reduce your company’s expenditure by choosing a UK business account that offers cost-effective financial management.

Additional Services

Opening a business account in the UK might be your first priority but it’s worth considering what additional services you might need now or in the future. If you want to accept online payments via your website, for example, then choosing a business account provider that can also deliver payment gateway and processing services will be beneficial.

Security and Compliance

When it comes to business accounts, there are plenty of providers to choose from, but how do you know who to trust? High street banks may be well known but they don’t tend to offer the most versatile financial services or the best rates. Fortunately, an evolving financial services sector means that are alternative options that give you access to secure and fully compliant business accounts.

As an Electronic Money Institution (EMI), PayAlly is fully licensed to deliver a wide range of financial solutions, including electronic money disbursements. Compliant with all relevant regulations, our clients’ funds are held in secure accounts with reputable credit institutions – and are never lent to third parties. As both a member of The Payments Association and a Principal Member of the MasterCard network, we’ve gained the confidence of both the industry and our client base.

Account Access

Traditionally, account access was mainly handled in a branch environment, but the tech revolution has changed the way we manage finances. Now, you never have to visit an in-person branch to manage your company’s finances. Instead, you can rely on online and app-based financial management to track your account, send, and receive funds or set up online payment gateways.

However, not all business account providers offer seamless account access, so it’s worth checking whether your preferred provider can deliver a secure, user-friendly online portal along with an intuitive and reliable mobile app.

Transaction Limits

It’s not unusual for some banks and financial institutions to impose transaction limits on their clients. Clearly, this can be damaging to your business if you’re unable to process transactions at will or if you encounter higher fees when you exceed set limits. While smaller businesses may not be concerned with transaction limits initially, they can quickly become problematic as your company grows.

To ensure you’ll always have access to the account functionality you need, check whether the account provider imposes transaction limits before you apply for an account and, if so, what fees are applied if limits are exceeded.

Opening a Business Account in the UK with PayAlly

Our extensive range of financial services allows us to offer solutions that are tailored to your business needs. From straightforward domestic transactions to complex international payments, we make it easy to manage your company’s finances on a global scale.

Whether you’re setting up a multi-currency payroll, launching a subscription-based revenue stream, or introducing online payments, our bespoke financial solutions will provide the flexible functionality you need.

To find out more or to open a business account in the UK now, talk to our experienced team of Relationship Managers today.