Business banking (also known as commercial banking) refers to a company’s financial dealings with the institutions which maintain their credit, savings and checking accounts. These institutions typically
It depends on what you are trying to achieve. With an ongoing business relationship, your bank may be able to assist you in different ways. However be careful of cross-collateralisation. On the other hand, with borrowing with different banks you may be seen more about the numbers.
You would be hard-pressed finding a story where one of Australia’s big banks supported an entrepreneur from start-up to a public listing. The Global Financial Crisis coupled with changes to the...
There was a time when if you needed money you went to the banks. But unless you have residential or commercial property, there is no point. The banks simply aren't in the business of lending money on an unsecured basis in any meaningful way because the reality is a lof of business fail in the first two years. I don't really think that is ever going to change, regardless of how profitable they are. Thankfully financial innovators have moved to fill this void - there are now more options available to obtain finance: peer to peer lenders, on-line unsecured lenders, invoice finance, crowd funding, the list goes on. I agree with Brian that the borrower should have some / all of their own money at risk (;skin in the game') - why should the lender fund 100%. Cheers Lachlan @ Fifo Capital
If you are a small business owner, and just want to collect payments, have a look at both PayPal and Stripe. Neither of them have monthly charges, just a set percentage of the transaction, and both are easy to integrate into a website, especially if you use Wordpress to build your website, which you should do. :-)
All Australian banks charge a setup fee, plus a monthly fee regardless whether you actually make any sales or not, so I strongly recommend looking at Stripe in particular, but you may already have a PayPal account, and it is easy and free to upgrade it to a business account.
What are our options?
For years now small business owners have said one of, if not, the biggest challenge they face has been obtaining sufficient credit to manage growth. No doubt that will not change in the near term....
We are looking at business transaction accounts, and it seems that Bankwest's Business Zero Transaction Account is the best. We were wondering whether the following are possible: 1) Export...
From personal experience Rosella, be careful - while Bankwest do offer a "fee free" account, you will get hit with fees for almost everything else. Not to mention that they take a LONG time to get an account opened - they took just over 6 weeks for me.
I have used it for one of my companies and I really regret doing so.
CBA have a better offering... even though you pay $10 a month for the account, it ends up being cheaper in a lot of cases, particularly if you are transferring money overseas (via paypal for example) plus you get an automatic $500 overdraft... quite handy when you are starting out.
As for Credit cards, direct debit and BPay - these are not managed by your bank account directly, these are from a Merchant facility.
It also depends on whether you intend to have a physical shopfront or an online only one...
Hope that helps...
Due to a recent court decision, small business owners are being urged to have a look at how their home loan account has been structured. A small business owner has been handed a huge tax bill after...
If you're like many other small business owners, chances are you've used a credit card to help fund your business and ease cash flow. Whilst it’s true that there are a wide range of SME solutions...
Andrew, thanks for the prompt. I will be following up very shortly. I needed this prompt - have been thinking abouth this exact thing for ages! Craig