Business Bank Accounts Losing Ground To Prepaid

The four biggest UK banks handle over eighty percent of the United Kingdom's small business accounts

. So everything's fine then? Well, not really because eighty-nine percent of businesses with less than ten employees say they dont have a good relationship with their bank. So, what's causing this lack of satisfaction? To start with, just opening a business bank account can be a bit of a pain, with banks often demanding to see everything from a business plan to information on credit history. High banking fees and overcharging are also causing many businesses serious headaches. In fact, research carried out on behalf of the treasury estimated that overcharging on banking fees adds up to about 5 billion per year. But with prepaid card accounts now offering tailored products for businesses, theres a brilliant alternative to a high street bank account.

Opening a prepaid account is incredibly simple. Usually the account can be set up online and no credit checks are needed. With a bank, depending on the number of checks that they decide to carry out, it can take up to four weeks to open a business account, but with a prepaid account you can generally start using the card within three to five days.

Prepaid business accounts can also offer value for money. For example, with most of the prepaid card business accounts there are no deposit fees, no UK purchase transaction fees and no UK cash machine withdrawal fees. There is also free 24/7 online banking, free Purchase Protection and they now automatically issue all customers with a unique Account Number and Sort Code to receive faster payments. This means that customers can set up Direct Debits to receive payments electronically and pay suppliers with ease.

This substitute proffers brilliant value and could easily save any business a significant amount of cash - which is especially important for start-ups, when the first few years are always difficult but integral. What's more approval is certain, despite the company's credit status so you can be up and running as soon as you apply for one. In fact, prepaid cards can benefit businesses in all sorts of ways, from cutting the time spent on expenses settlement and making bill payments, to receiving due payments and managing revenue streams.

Starting up a your own business can be a thrilling and gratifying journey, being in charge of yourself and having full responsibility for your businesses direction, but there are also a number of things to be aware of. A lot of small business owners feel as if they had to jump through hoops just to get a business bank account opened, all the red tape makes the process drawn-out and problematic. So anyone thats looking for a simple, convenient and cost-effective alternative to a typical high street business bank account should take a closer look at a prepaid card account.

by: zac colbert

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