BEST SME Banking Services 2023

All businesses are different, different businesses require different banking services depending on what they do and the products or services they sell and how they trade e.g. a virtual business, an online trader, mail order, via bricks and mortar (a physical office,  shop or outlet) or a combination of these.

If your business is already trading you will have a good idea of the banking services you need. If you are a business startup, it’s worth working out what you think you will need from your  business bank. One of the best places to start is to to write down your requirements.

Business banking – What do you need?

Payments/Receipts – Are your sales paid for by card or by electronic transfer? Are sales online? Will your business take any cash payments?

Paying in / withdrawing cash – Do you need to pay cash into your business bank account? Is withdrawing cash important for running your business?

Transaction size & frequency – Will you take lots of smaller electronic payments or fewer larger value payments?

Local physical branch or online – Do you need a physical branch close by, or are you able to do most business banking online/electronically?

Overdraft – Will your business need an overdraft? Some business are able to survive by having a good cash flow, other businesses need to hold a significant value in stock, so an  overdraft is often vital. NOT all business accounts offer an overdraft, so this can be an important consideration when assessing suitable business banking services. 

All these things are important as they will have an impact on the best type of bank account for your business and the most cost efficient way of banking.

We have listed some of the best offers in terms of free business banking, it is important to understand that some of the newer digital online/app based banks are not registered under the FSCS (Financial Services Compensation Scheme). The FSCS currently covers balances up to the value of £85,000. If a provider is not FSCS registered your money could be at risk as it is not covered and if the bank fails for any reason you would not be eligible to make an FSCS claim.