Best bank for Small businesses

[Abdi]

I need to open a bank account for new business but haven't registered a cc yet. Would I be able to open an account and what's the best bank to use?

[Blurock]

The best bank is the one that meets your needs the best. Service varies and the one that is best today may not be the best tomorrow.

What are you looking for in a bank? Convenience, price, professionalism, business support? Approach your local bank and see what they have to offer. Then look at a few more and make your decision based on the criteria that you set. Look at their websites to see what is on offer. Do your homework before visiting the bank.

There are some of the banks that will assist you in registering new businesses. FNB has a very efficient service in this regard and I think Nedbank offers a similar service.

Good luck with your venture.

[Newretailer]

Standard Bank is currently the most expensive. The banks won't open a business account without your company registration papers.

I am in the process of moving from operating as a cc to sole proprietor. Capitec has by far the lowest charges, but only offer savings accounts. This suits me as I do all my banking online. They don't charge you any fees for purchases on your debit card.

As an aside, Capitec's credit card facility for POS is really cheap too. No minimum turnover. You pay a small monthly fee and then up to 1.99% on debit card purchases and I think 3.75% on credit card purchases. I got even better rates than that.

Can you tell I am impressed by them? I hope they eventually get the full spectrum of business accounts, home loans etc.

[BusFact]

There are some of the banks that will assist you in registering new businesses. FNB has a very efficient service in this regard and I think Nedbank offers a similar service.

Thats interesting, I never knew that. Thanks.

[BusFact]

I need to open a bank account for new business but haven't registered a cc yet. Would I be able to open an account and what's the best bank to use?

If your company doesn't exist yet, they can't open an account for it. Registration must happen first.

[AmithS]

As Blurock said you going to have to determine what services your require and that will determine to a large degree where you go.

With Capitec I am not sure how easy it is to deposit large sums of cash if you are in a cash based business where as with FNB as an example you have ADT machines with reduced deposit fees, etc...

[Newretailer]

My CC (which I am trying to close down) account is with FNB. I have to second that FNB is really good and supportive for business with reasonable fees. My rave for Capitec is in personal capacity and will only work for sole proprietors.

I realise that I am small fry compared to most of you, lol!

[daveob]

Look at the costs for the services / features that you'll be needing.

I must admit, that when I read the first post heading, my immediate thought went to the struggle of a new business. This almost invariably involves cash flow problems and probable overdrafts.

If this is a possibility ( and it always is ), then take it from an old hat in the game ( hope others agree ) that you will NOT get a "special" helping hand from A, B or C -- no matter what they tell you now, or what they advertise in all the "how can we help you" type adverts. What they will want, in every single case, is surity from you in your personal capacity. This is going to involve putting your personal assets up as garantee for the loan / overdraft - and at a hefty premium to the loan you're asking for. Make sure that you KNOW and FULLY understand the implications of signing and unlimited letter of surity BEFORE you open that bank account - it will be used against you at the first sign of trouble with the business. And do not just sign any "standard" documents when you open that account until you fully understand them. If you don't, thank the clerk and tell them you'll be back in a day or 2 after your lawyer has checked the paperwork. Don't feel pressured into signing away - you may very well regret it in the future.

2c

[mother]

I prefer Nedbank for my Small Business. Very happy with their overall service and fees. But like Daveob said, you are pretty much just a number to them, and that is true.

[Dave A]

At the moment FNB seems to be the most cost efficient for business accounts. And it sounds like Capitec is the winner for personal accounts.

Make sure that you KNOW and FULLY understand the implications of signing and unlimited letter of surity BEFORE you open that bank account - it will be used against you at the first sign of trouble with the business.

Quite simply, don't sign unlimited sureties.

If it's for asset finance, make sure it's for the finance on that asset only.
If it's for an overdraft, make sure it's on that account only, and there's a celing value to the surety.

Whatever you do, make sure anything that resembles an "or any other debt owed to the bank" type clause is removed before signing.

[AmithS]

Dave, are banks really willing to remove clauses from their contracts?

[Dave A]

Well, I've always been given the option of an open surety or a specific, limited one by Standard Bank.

Of course they punt the open surety first, arguing it's so much easier to increase limits and add new deals - but the specific limited surety format is a standard option. You just need to insist on it.

[Pap_sak]

FNB used to allow you to deposit unlimited amounts of cash into a normal savings account at the ATM....the about 6 months ago they changed that to 5 times a month. That was still ok (I could get 130 notes into an envelope for the one ATM in town, funnily enough only about 120 in the other!)...now, last month, they have dumped that altogether, now you are paying a percentage on everthing - bank fees for me are going to rise about 700-800 p/m.- ie chew up another 2.5k of sales* Even then, they are still probably the cheapest bank offering business banking - Capitec is the best for personal as well as merchant services, unless you are turning over quite the cash mountain in which case the big boys might look at you.

* I will now be paying as many suppliers as possible with cash and making my problem theirs, lol

[AndyD]

FNB also allowed you to deposit cash into your home load without charges then you could transfer it across into your business electronically also without charges. Not sure if this is still the case, they probably plugged this hole already.

[wynn]

I have hated cash deposit fees with a passion for years, the banks close the loopholes faster than you can find them.

Depositing cash into your home loan would be poetic justice as the bank won't charge themselves a cash deposit fee, I hope they don't penalise you by crediting your account by less than you deposit for doing it?

Yes I have found that paying suppliers with cash is the easiest way to avoid fees, but they are even getting shirty now and refuse to give a settlement if you do pay cash, the secret is to spread it around a bit so you don't use one supplier all the time.

Insurance policies, unit trusts, telephone accounts, L&W and rates accounts, anything that has an 'Easypay' number, are other great way of getting rid of cash and making your problem someone elses, provided you have a bank PnP or Checkers close by.