To run a business, you generally need a bank account. However, that doesn’t mean you should just accept all costs associated with having a business bank account or credit card without question.
Even if you can’t ditch bank costs entirely, it’s likely you can reduce them significantly – and that means more profits for you and your business.
Compare banks’ fee structures before settling
Most bank accounts have a monthly account fee and then additional fees for various transactions. It might be tempting to go for the bank with the lowest account fee, but don’t forget to consider the transaction fees as well.
All the major banks release their fee schedules annually, making it easy to do a comparison.
Understand what you’re paying for
Make sure the fees for your account are properly explained to you and that you haven’t been given an account with unnecessary services by default. Also, investigate the different types of accounts on offer; aim to find the one that best suits the type and size of your business.
Reduce your transactions
Most banks charge per transaction, so the fewer transactions your business makes every month, the cheaper your bank fees will be. Where possible, also avoid expensive transactions, such as depositing cheques.
Go for bundled services
Accounts that bundle services into one overall monthly fee can work out cheaper. Ideally, go for an account that includes a certain number of free withdrawals, transfers and deposits in the monthly fee.
Also, make sure that certain services, such as internet banking, are included.
However, it’s easy to underestimate how many transactions you’ll need per month – don’t make the mistake of paying for a bundled package and then having to pay for multiple extra transactions too.
Consider alternative payment systems
If you need to accept credit card payments, consider some alternative payment systems before defaulting to your bank’s credit card point-of-sale machine. These machines can be expensive, and some banks have penalties if a minimum spend is not achieved each month.
Don’t use other banks’ ATMs
ATMs from banks other than your own will charge you extra to use them. Although this might not seem like a big deal at the time, the extra charges can add up fast.
Consider the accessibility and convenience of ATMs when choosing which bank to use.
Ensure your account is never overdrawn
Banks will often honour a debit from your account even if there aren’t enough funds to cover it. This is great at the time of the transaction but it also means you’ll be charged a fee later down the line.
Avoid additional cards
Additional cards or garage cards on your business account often carry fees. Extra cards can be useful – but to cut costs, have only as many cards as you really need.
Get rid of unnecessary add-ons
Check to make sure there aren’t any superfluous add-ons attached to your account, such as unnecessary insurance that’s already covered elsewhere.
Also, reward programmes can equal great savings in the long run, but only if they’re properly utilised.
Reducing business costs with The Workspace
Work from one or more of our branches nationwide, and you’ll avoid the high set-up costs and many of the running costs associated with traditional office space. Everything you need to run a business is already in place, from high-speed internet to meeting rooms and a range of onsite business services, including full reception.