Running a small business means wearing many hats – and whilst banking might not be the most glamorous part of the job, getting it right can save you time, money and a serious headache or two. Natalie Ford, our local New Business Relationship Manager for Allica Bank, joined an NCF meeting to pass on some practical tips to help us all make the most of our business banking.
Your current account isn’t working as hard as you are
Most business current accounts pay little to no interest on the money sitting in them. If you’re holding a healthy cash balance – whether that’s a tax reserve, a rainy-day fund or working capital – it’s worth exploring whether a savings or deposit account could put that money to work. Every bit of interest earned is money back into your business. (An Allica Bank Instant Access Deposit account will earn you at least 2.83%, for example).
Making Tax Digital means a dedicated bank account isn’t optional
If you’re subject to HMRC’s Making Tax Digital (MTD) requirements – and increasingly, most of us are – you’ll need a separate business bank account to keep your records clean and compliant. Mixing personal and business transactions doesn’t just make your bookkeeping a nightmare, it can create real problems when it comes to submitting accurate digital records. A dedicated account keeps things simple, clear and audit-ready.
Fraud is more sophisticated than ever: stay vigilant
Business accounts are an increasingly attractive target for fraudsters. Authorised push payment (APP) fraud – where you’re tricked into transferring money to a criminal – is on the rise and small businesses are frequently in the crosshairs. Always verify payment requests through a known contact number (not one provided in the suspicious message), be wary of urgent requests to change supplier bank details, and make sure your team know the red flags too. A quick phone call can save thousands. Natalie noted that the run-up to a Bank Holiday weekend seems to be a popular time for fraudsters to try it on, when we’re all focussed on the long weekend rather than work!
Know your borrowing options before you need them
Too many businesses only start thinking about financing when they’re already under pressure. Understanding what’s available to you – whether that’s an overdraft for short-term cash flow or a business loan for investment and growth – means you can act quickly and confidently when opportunities or challenges arise, rather than scrambling at the last minute. (Allica offer overdrafts and financing options for large purchases, to give small business flexibility).
Your bank should feel like a business partner
Perhaps the most underrated banking tip of all: don’t settle for a bank that treats you like a number. The best business banking relationships involve a real person who understands your sector, your plans and your challenges.
That’s something Allica Bank pride themselves on: “How business banking used to be – just better” is their strapline. Established in 2019 and now with around 900 staff, Allica was built specifically to serve SMEs. Their approach combines the technology you’d expect (full online banking, integration with all the major MTD-compliant accounting platforms) with the kind of human service that’s largely disappeared from the high street.
Natalie is a good example of that service; she brings years of high street banking experience – including 15 years at Santander – and takes the time to hold an annual review with each of her clients. Allica also offers cashback on debit card transactions and operates under full UK financial regulation so your money is in safe hands. Click here to drop Natalie an email if you’d like to find out whether Allica could be a good fit for your business.