Which Business Bank Service provider?

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HSBC

Services for SMEs HSBC offer three tiers of banking – Business Banking, Commercial Banking, and Corporate and Structured Banking: most start-ups will fall into the first category, with turnover less than £2m. There is little choice as to the accounts you can go for (although this is not necessarily a bad thing). For businesses with an annual turnover below £500,000, HSBC provides a Business Direct Account; for businesses with annual turnover below £1m, they have the Business Current Account Manager. The dedicated business manager was happy to talk me through the options and would be my point-of-contact, providing me with his email and a direct phone number. HSBC will undertake regular business reviews with customers, and promise to set new customers up with cards, PIN, standing orders and direct debits within 7 days of applying.

Charges HSBC offer 18 months of free banking for start-ups with a projected turnover of less than £1 million. After the free banking comes to an end, you can either go onto the Business Direct Tariff, which gives free online and telephone for businesses with a turnover less than £500,000, or onto the Small Business Tariff (for Business Current Accounts), for businesses with turnovers less than £1m. The latter tariff is good for those who prefer to use the Internet and telephone banking and who rarely use cash or cheques – charges for cheques and withdrawing or paying in cash are higher than on the Small Business Tariff. Online Their online banking facilities are award-winning. The Business Network online connects you to other businesses online, and the Knowledge centre provides online support and information to run your business. They also provide telephone banking and text alerts. HSBC also offers new business customers a £75 voucher for Google AdWords.

he Royal Bank of Scotland

Services for SMEs Services aimed at SMEs with RBS include the Royalties Business Account, which gives you a fixed monthly fee of £25 for businesses with an annual turnover of up to £100,000, or a monthly fee of £55 for an annual turnover of between £100,000 and £250,000. The Royalties Business Account includes: - Breakdown cover with Green Flag’s Roadside Assistance. - Life insurance, with 5% off premiums for the term of the plan. - Travel insurance can be upgraded from personal travel to include businesses, with the Royalties Gold account. - 25% off the monthly fee for Streamline Online – this is Streamline’s web-based financial planning business tool. - A discount of 1% off the standard rate for Small business loans. - 5% off RBS’s mentor service for advice on employment law and health and safety. - £50 bill credit on each Vodafone connection. - Plus, £75 worth of free advertising with Google AdWords! This offer lasted until 31st December 2010, for anyone setting up a new business banking current account online with RBS who are not currently registered as a Google AdWords customer.

Charges RBS offers 2 years free banking if you’ve been in business for less than a year. After this the standard tariff is £10 per month unless transactions exceed this, in which case you pay above. There is no limit on transactions, although there are charges for transactions that come to over £1 million in a 12 month period. There are fixed charges. RBS also offers industry-specific services. For example, a guidance service for women in business that makes available contacts within a network of Women in Business Ambassadors, for support and advice on running a business. Another example of this impressively tailored advice is the guidance aimed at those in the agriculture industry, with benefits including a specifically tailored farm current account; loans; and insurance. It is made very clear by RBS that for all areas security will most likely be required and your home or property may be repossessed if you lag behind on mortgage repayments. Recognising that franchising is specifically very different to other businesses, RBS offers franchises advice from experienced Specialist Franchise Development Managers, who also have access to solicitors and accountants with experience of franchising. The help geared towards franchisors includes insurance of up to 20% no claims discounts, and loans of typically up to 70% of the total project cost to cover equipment, vehicles, initial franchise fee, and working capital. RBS suggests franchisors consider their Enterprise Finance Guarantee; an initiative whereby the government Department for Business Innovation and Skills (BIS), guarantees 75% of your loan, meaning less security is needed to back up borrowing money.

There is also a team tailored to give advice to those setting up in the healthcare sector; mentors for advice on tax, compliance, and health and safety; and a service package for reducing risk priced from £29.99 a month plus VAT, to help avoid visiting the solicitors. Manager At RBS you will have a personal manager who manages your account, you are given the mobile number, email and direct line to your dedicated manager, and on top of this business advisers are available twenty-four hours a day. Online Online facilities include online banking with a daily payment limit of £20,000 with the free digital banking service or alternatively a daily payment limit of £30,000 for the “banking lite” option, which entails a monthly payment of £5. A Clients’ Monies Service helps to manage clients’ funds with minimal effort. The SWIFT Service Bureau makes automated payment and statement reporting more efficient through a single connection, so there is less need for an in-house system. Business Status Alerts, ranging from £25 to £216 monthly, enables customers to check the creditworthiness of customers on a continuing basis. Available online there is software with advice for start-ups, and Streamline – the card services subsidiary of RBS. As well as online banking, there is the option of telephone banking, and mobile phone banking. General Approach The general approach to small businesses is really impressive. RBS readily provides really good, personal service, with a personal dedicated manager who will assess every case and tailor advice on an individual basis. For start-ups looking for a loan the emphasis is really placed on the individual’s experience and working knowledge of the field that they are looking to set up a business in, as well as a fully viable business plan, security to pay money back, and how much of a financial contribution the individual will be contributing to the business. They will assess whether you come under the bracket of SME or push you up into the corporate band if that becomes more appropriate, which is looking towards the £1 million plus turnover point. When we walked into our local branch and asked to talk to someone about setting up a new business account, there was immediately someone on hand with the time and expertise to help. RBS are great for advice, perhaps not entirely targeted towards SMEs, but really impressive for service.

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