How to switch banks: A step-by-step guide for UK startups

Running a startup means having to constantly optimise your operations. Sometimes this will mean switching your current startup bank account in the UK for one that offers better benefits and lower rates. If you’re thinking about changing your startup bank account, here’s everything you need to know.

Before we get into switching startup bank accounts, let’s address the question that some might have: do you really need a startup bank account?

Why startups and small businesses need a bank account in the UK

Beyond the regulatory requirements, there are proven advantages to opening a startup bank account. For starters, it separates your business life and makes your business more professional. It will also help you to better understand your startup’s cash flow and make it easy to manage and claim your expenses.

A startup bank account also makes it easy to accept payments from several sources. Finally, it will be easier to file your taxes since your business revenue and expenses will be separate from your personal finances.

Why switch to another business bank provider in the UK?

End of freebies: There would have been several free services for a period when you opened your startup bank account. You now realise how high those fees are once they start kicking in and that’s when you should look at other startup bank accounts.

Better products: Some startup bank accounts have a better understanding of the needs of startups and small businesses. You might find their account features friendlier than those of some other banks.

Scaling needs: Your banking needs would have been different when you were starting your business. With growth comes different requirements for which you might need a new startup bank account.

Introductory offers: Maybe the new bank will offer you lower or no fees on certain services. Or maybe you can negotiate for better rates for a longer period when you switch.

Customer support: Another reason to open a new startup bank account is customer service. If your current bank can’t be there for you when you need it, it’s time to look elsewhere.

When shouldn’t you switch banks?

You shouldn’t think of opening a new startup bank account if you’re planning to get a loan or open a line of credit. These will be easier with banks that have known you for years.

Chalkboard: Supporting your startup from day one

As a virtual number app, Chalkboard is in the business of supporting small businesses and startups. With Chalkboard, your startup can:

• Reduce costs since you don’t have to pay for additional phones, PBX or hefty monthly charges.

• Reach international customers with a virtual number in their country.

• Improve your brand equity with a dedicated second line for work.

• Engage in cost-effective group conversations with contacts.

• Use auto-reply to send pre-written messages for missed calls.

• Get an advanced and flexible digital phone system suited for remote work.

Download Chalkboard and try it now. Your new startup bank account will be happier with your exceptionally low phone bills!