Businesses are always evolving. Over time, as the business grows, so will its needs. One of the factors that might change is the business’s financial needs. Ideally, when starting, many businesses just need a central location to collect payments and pay for services. But, as your business grows, these needs may change, and you might find that your current business account is not offering the features and services that will adequately serve your business.
Some banks are notorious for resisting to grow with the times. Unfortunately, your bank could be one of them, and you might be looking to move to a more convenient and technologically advanced finance partner. So how do you do that without affecting the cash flow of your business?
Why Change Business Bank Accounts?
Every business will have different reasons to switch bank accounts, but some common signs indicate that your business might have outgrown your current bank, and you should consider switching your business bank account.
Insufficient banking services
Over the last few years, the banking industry has grown tremendously. Adopting technology has allowed banks to offer more features and convenience to their business clientele. Your current bank might not have been among the banks that welcomed digital technology, meaning essential services like organized cash, expense-dedicated accounts, cards, and team spending limits may not be an option. If that’s the case, you should consider switching banks.
On average, running a business account is costlier than a private account. However, some banks rack up costs, making it extremely expensive for the business to run the account. This might put a strain on the business’s finances. Hidden charges, recurring monthly fees, and minimum balance requirements can deter the growth of the business. Opting for a more business-friendly bank with lower fees and is easier to run can be a great decision for your business. It allows you to access funds more easily and increase the amount of money available to your business.
Dependence on physical locations
Again, this goes back to some banks’ refusal to adopt essential services like digital banking, forcing businesses to rely on going to the actual physical bank branch for most banking tasks. It’s not only traditional but time-wasting for business owners to spend their time in long queues instead of growing their businesses and interacting with customers. If you’re tired of heading out to the physical location of your bank for the slightest transactions, it’s time to explore other business banking options.
You should always look for a banking partner that will grow with the needs of your business. The ideal bank should offer seamless integration with accounting services, allow for unlimited accounts, and not impose fees that will erode your savings. A good bank should support your growth at every level, giving you control and clarity in how you run your accounts.
Poor customer service
Poor customer service can be overwhelmingly frustrating and is a leading reason for many businesses wanting to switch their business bank accounts. A competent financial partner should provide hassle-free support and timely and effective assistance.
What is a Business Banking Switch Scheme?
The business banking switch scheme or the Current Account Switch Service is a UK government-back initiative designed to make switching business accounts easy, simple, and hassle-free.
This process ensures your new bank will handle the process of switching and ensures all payments into and out of your old account are redirected to your new account. Your customers, employees, and suppliers are notified of the switch and provided with additional bank details to help with the processing of payments and revenue.
On average, the switch is completed within seven days. You can continue using the old account as usual during this time, meaning businesses retain vital access to financial services without downtime.
The scheme is free to use, and because it is government-backed, it provides peace of mind because you’re assured the switch will be handled professionally and your business is not impacted during the transition.
What is a Current Account Switch Guarantee?
The Current Account Switch Guarantee is a guarantee provided by the UK’s Current Account Switch Service (CASS), which facilitates business account switching, ensuring that your switch will be completed within seven working days. The guarantee also automatically redirects all direct debits, standing orders, and incoming payments from your old account to your new account.
Under the guarantee, if anything goes wrong during the switch, your new bank will rectify the situation and compensate you for any losses.
How to Switch Your Business Bank Account
Switching your business account is a simple process that can be broken down into four simple steps;
Research your options
The last thing you want is to find yourself in the same position after a few months, looking to switch your business account again. Start by researching your options to identify a new account your business can grow into for the foreseeable future. Compare the business accounts that meet your needs, paying attention to fees, accessibility, and services.
When considering the various options, you can also ask about funding options, whether the bank can integrate with accounting or other business software, and whether it offers dedicated account managers for small business accounts. These are pivotal factors that will help you pick out the right financial partner.
Open a new business bank account
Once you identify the right bank, open a new account with the new bank. Usually, this can be done online or over the phone, depending on the bank. You will need to provide personal and business information to facilitate the opening of the account. Some of the required details include the business’s name, trading address, Companies House registration number, HM revenue and customs certificate, proof of identity, certificate of incorporation, and memorandum and articles of association for limited companies.
This process will take 7 days to complete, and your new account will be up and running. Once the account is running, you can proceed to the next step.
Transfer your business to the new account
Update your customers, suppliers and employees on the change in your account provider. If you’re an online business, update the details in your payment gateway to ensure money is channelled to the right account.
Before switching, quickly audit your outgoing payments to ensure all your direct debits and standing orders are updated.
Cancel your cards
Don’t forget to cancel any cards associated with your old account and destroy them. If you have a credit card, have the balance transferred to the new provider? It should be a quick and painless process.
Why Switch Your Business Bank Account to Pay it?
Challenger banks are emerging as the preferred option for businesses because of the many features and technologies they offer their business clientele. Pay iO has been leading that pack, and switching your business account to Pay iO comes with many benefits, including;
- It’s free – Requesting the switch will only take a few minutes and doesn’t cost a penny. The payments associated with our business bank accounts are minimal and transparent, so you will save money while enjoying revolutionary features.
- It’s easy – Our banking services are fully digital. We offer a mobile app and web access to your business account customers, providing you with the ultimate power of banking and financial freedom in the palm of your hand. You can also use our digital platform to request the switch, so you don’t have to worry about spending a long time exchanging details with customer support representatives. It’s quick and easy!
- It’s seamless – We take up the donkey work of making the switch happen so you can continue focusing on your business. We will handle communications with your old bank and have your new account set up and ready to go. Also, if anyone pays money into the old account, it will be rerouted to the new account.
- You get all business account features in one place – Switching your business account to Pay iO means you get all our business account features in one convenient place. The account can be integrated with multiple accounting tools to help you understand and manage your business from one central location.
- Perfect for small and big businesses – We offer an extensive range of features suitable for small and large businesses. The features range from getting bank payments directly from your customers to managing transactions and expenses and receiving global payments conveniently in one place. These features help you reduce costs as well as administrative time and effort.
- You’re protected – The CASS guarantee covers almost 99% of UK current accounts. All banks and building societies in the UK follow the same switch process, so you can rest assured that it will be a swift and easy process.
- Multi-currency options – With Pay iO, you will have the flexibility of receiving and sending money globally. You can receive money in multiple currencies, which will help you lower conversion costs when sending money to suppliers accepting payments in different currencies. We make it easier for businesses to trade across borders.
Switching a business bank account is not the tedious or risky process that you’ve always thought it was. It’s relatively easy and secure, so you shouldn’t continue holding back the success of your business by working with a financial partner that is not adequately equipped to help your business get to the next level.