Is there an alternative to business banking?
Many businesses have been hit hard by everything from unexpected bank penalties to only getting a loan if it was linked to controversial interest rate swaps that pushed a lot of businesses under(1).
With the constant criticism of banks in the media, it may seem like there’s little point in moving accounts because they all appear to be the same. Yet there’s a business banking alternative that more and more are turning to: a prepaid business account.
This relatively new option recognises that keeping account costs down is an important factor, so prepaid business accounts can work out much cheaper than traditional business banking. For example, the Cashplus Small Business Account offers many essential features for free. Customers can set up Direct Debits and Standing Orders for free, saving time and money on regular bills. It’s also free to send and receive bank transfers. And depending on the prepaid business account, cash withdrawals at ATMs can also be offered free of charge.
Perhaps even more surprisingly for customers used to dealing with banks, depositing cash into a prepaid business account is free at any UK Post Office® and at many exclusive stores. So anyone that handles a lot of cash could save a significant amount.
Prepaid business accounts can also help save money in other ways. For example, they come with prepaid cards that decrease the usual administration time and money spent on reconciling expenses, and reduce the risk of employee fraud. That’s because unlike most high street business accounts, with Cashplus, spending and balances can be monitored live online 24/7. This can potentially save businesses as much as £1,768 per person per year in exaggerated expense claims(2).
One or two prepaid business accounts also offer a Direct Debit service, which when used to pay regular bills such as for power, can provide very worthwhile discounts.
A handful of prepaid cards also offer a valuable benefit that bank debit cards generally don’t provide: free Purchase Protection. This makes them a particularly safe way to shop online for great value deals – on everything from office supplies to manufacturing materials.
What’s more, unlike with high street banks, approval is instant with prepaid accounts. Most offer a 100% acceptance guarantee, as long as the applicant is over 18 and the business is based in the UK. In fact, there are no credit checks needed just to open an account, which is ideal for businesses that are just starting out, or don’t have a great balance sheet.
So with all these advantages, anyone that’s frustrated with his or her business banking should take a look at the prepaid business account options available today. They’re not just a great alternative to traditional business bank accounts, for many they can be better and cheaper than the high street equivalent.
Sources:
1: http://www.independent.co.uk/news/business/news/barclays-faces-fresh-scandal-over-interest-rate-swaps-7897301.html (29/June/2012)
2: http://www.hrmagazine.co.uk/hro/news/1073438/employees-claimed-average-gbp1-768-personal-costs-expense-forms-reports-rsa
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