Surely its not just me, but I'm having a little trouble getting my head around the way business banking works in general...

I currently have a business bank account with Barclays, who I chose simply because they've always been good to me in the 14 years I've held a personal account with them. The new account I set up is identical to my personal account in terms of features etc - so its just basic; cheque book, debit card etc - no overdraft or lending on it.

However, on top of paying a monthly fee for using the account, I also pay additional fees on specific types of transactions/"services" that are free with my personal account.

On top of that, I recently enquired about a business loan from them, and found out that the APR is around 22%, with a lending fee on top - while a loan for the same amount put through as personal borrowings is much cheaper.

So theres two basic things my bank provide for businesses - identical in pretty much every way to the free/lower cost personal versions - except on price/cost.

Surely I'm not alone in thinking that this simply doesn't make sense?! (not from the perspective of us "consumers" anyway)
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Hi,

I dont know how big your business is - but I use HBOS Bank of Scotland Business Banking which suits my small business fine - especially if you are happy with telephone and internet banking. I pay ?5 a month business fee and thats about it. You get a cheque book and a Link card (no debit card.) Also, deposit book and enevelopes - no overdraft, & their staff are very helpful. I believe they offer loans at competitive rates.

I find their business banking very easy to use and you just pay that one monthly fee - there are no more hidden fees etc.
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Hi
I've used HBOS too, and they used to be free and then started charging the ?5 fee.

There are several Banks out there will give you free business banking - I joined Alliance and Leicester Commercial Bank who offer free banking, and a cracking rate of interest too in their current and linked deposit accounts, for those of us lucky enough to have spare cash. They do have the most annoying systems I've ever come across however - they bought the old Girobank you see - which would drive you mad if you weren't prepared for it. Their online banking for example is anything but simple, and is also 24 hrs out of date - bizarre eh?

The co-operative bank have some good offers, especially if you're a member of the Federation of Small Busineses, but their normal offering is good too, and they are the most ethical bank around at the moment. Move from Barclays though - you're quite correct to say they are doing the same thing as with your personal account, and charging you heaps more. Chuck em.
Best of luck
Xsailer
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Can't think of a good thing that I'd like to say about Barclays Bank apart from bye bye.:D I'm glad they are having a hard time at the moment, I wish them many more problems.:D:D

A second vote for the Co-operative Bank, which we use as FSB members, not looking for some bank manager to give business advice (haven't met one that could), so no contact with them at all but also no complaints. I like their ethical bit as well, glad they don't boil young kiddies and all that stuff.
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I'm just setting up with Abbey as my personal account is with them and they offer free business banking so long as I stay in credit.

Alliance and Leicester also offer a free business banking deal, I think.

Obviously if you go overdrawn, pay in/out a lot then they'll start chargin by the cheque, etc. - take a look at their sites though, they seem a lot more switched-on than other business banking offers.
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17 years of banking with Barclays as a personal customer and 3 years as a buiness customer. Had overdrafts but never done anything wrong. Had a letter saying a new business manager was taken over and would be saying hi in the next week or so. Next day I had a letter from him saying they were withdrawing both my overdrafts and wanted repayment within 7 days - completely strange, wierd and a right stressful time to find ?k to repay.

So went to see him as thought it was some sort of mistake. He said no. So physically chucked cheque book, debit card etc at him and moved on after getting Lloyds to help me.

Barclays - well I am sure they are flying close to the wind and if they did go under I would call in to see said manager and laugh at him.
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Hi

The co-operative bank have some good offers, especially if you're a member of the Federation of Small Busineses, but their normal offering is good too, and they are the most ethical bank around at the moment. Xsailer

Surprised at you mentioning the Co-operative bank and the FSB as you would probably know that while the FSB promote the Co-op bank through advantageous conditions but whenever the subject is brought up the FSB forum members continually report problems and dis-satisfaction with their Co-op business bank accounts.
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Also (seperate reply here), one of my clients in which I am quite active with has an account at Natwest. Its a club/society account and qualifed for free banking. We make very little suplus and at the moment its hard to keep our head above water. Well natwest has just withdrawn free account and will be charging us. Since we run a bar there is a lot of cash banked and a guess at the fees natwest will charge in one year will be over ?000. Told them that it would send us under and they don't care - just want there money. So moving to A&L or Abbey which still charge but much cheaper.
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The horror stories are coming out here! :(
Always has perplexed me - I pay all my money from the business into the bank who presumably invest it and make a profit, i've never been overdrawn, never requested an overdraft. Get 0% interest but it's a current account so what?
Then I get a letter - we are introducing monthly management charges !! what? I only make half a dozen transactions every month! I now have to pay 90p for the privilege of queueing 15 minutes to pay a cheque into my account.
It's all wrong - maybe we should all take our money out of the bank and trade in cash, it would certainly get their attention. From what I read on other sites there are many high street banks who can't even cover the deposits by their customers!
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Very happy with my free account with A & L. I can't fault it.
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No complaints with my Abbey business account, but then my banking affairs are very simple.

I agree that business banking is a rip off- all you can do is shop around and get the best one for your circumstances.
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The 'high street' (retail) banks are not the answer for business, firstly we advise all clients who are suitable to use Abbey, then after that we prefer clients to use the corporate banking side of the 'high street' banks.

What a lot don't realise is if you go into a high street bank and open a business account you are dealing with the retail side of the bank when ideally you will be better suited to the corporate banking side.

If you don't need a counter service then the likes of Abbey are a perfect fit for small business.

Jason
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