
The company making or taking the payment using the old account details will also get a message instructing them to update their records with the new account information. On top of that, the service is backed by a guarantee which means that if something should go wrong during a switch, any charges or interest will be refunded.
Until the service was brought in, changing from one account to another could be a lengthy process, with the switch typically taking between 18 and 30 days after the new account had been opened. That was a huge hurdle for small businesses heavily reliant on cash flow, with worries about missing out on invoice payments landing in the right account or suppliers not being paid according to terms, with the possibility of late payment charges being incurred.Do I need a business bank account at all?
If your business is either a limited or incorporated company you must have a business account. If you are a sole trader or partnership, you could use your personal current account but that can make your finances messy – keeping personal and business accounts separate is the better option.Am I spending too much on bank charges?
What if I need an overdraft?
Costs can be quite high but will vary between banks – check interest rates, set up fees and the amount you can borrow this way.And what about a business debit card?
Lots of business accounts come with these facilities but ask if you’re eligible for a debit card – and a cheque book, if you need one – before changing to an account where you might not qualify for these.What if I’m not happy with the service at my new bank?
With the new Current Account Switch Service, you can change your provider again quickly and easily.Will switching bank accounts affect my business credit rating?
No, as long as you repay any outstanding overdraft with your old bank or building society. If there are any problems with payments as part of the switching process, your new bank or building society will put those right and make sure your credit rating is not affected.Share this story