Small business owners have a lot to deal with to keep their business running smoothly, so any help is greatly appreciated. Today, UK Finance has helped them by making it easier to open or switch to a new business bank account. Now all they need is some time to consider the best business current accounts so they can pick a winner.
While UK Finance can't force small businesses to switch over to better bank accounts, they have made the process easier by requiring providers to request the same basic set of information from customers who want to set up or switch to them. So far, 18 business current account providers are on board.
This may not seem like a lot, but our own data shows that there are only 29 providers in the market overall, which means 18 accounts for almost half. To apply to any of these providers, all a business owner needs is the information set out in the 'Business Account Checklist', which is available on each bank's website, as well as the UK Finance site.
"Opening a business current account is an important step for any business and we want to help ensure that the process is as simple as possible," Stephen Pegge, managing director of Commercial Finance at UK Finance, said. "The new guide we've developed with the banks aims to make the process easier for businesses, saving valuable time and effort by ensuring that all the information required is available so they are prepped and ready before the initial meeting takes place.
"We believe that this will in turn help to promote greater choice and competition in the business current account market." The reason UK Finance has stepped in is because a Competition & Markets Authority investigation identified the account opening process as a significant barrier to switching.
However, business owners will still need to do a little bit of work. So, if you find that your current business account isn't giving you much joy, see if one of Moneyfacts' best business bank accounts could be for you.
Note that the checklist is not part of the application process, just a handy guide to prepare you and help it go smoothly. And while you're looking to improve what you get out of your everyday banking, why not have a look at the best business savings accounts too?
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.