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JennyB
16-02-2004, 05:36 PM
Hello - I am currently looking to set up a business bank account for my first business which is still in the start up stage. I'm confused as to which order to do things in. I will need funding by a bank at some point. Now - do I wait to see which bank will lend me the money and set up an account with them, or can I set up the account and still get funding from a different bank. Obviously the bank who agrees to give me financing may not have as favourable terms as the next bank for business banking...see how confused I am! Help!

DrueJohnson
16-02-2004, 07:46 PM
Hi Jenny

Getting funding from anywhere (but particularly banks) will require some thought - what is the funding for ? How will it be used ? When can it be repaid? are just a few of the questions which you may need to think about.

Some careful planning and cashflow forecasting before you launch your business will undoubtedly help you.

A good starting point maybe to gather as much free information that you can (this site, a few of the banks, your local LiveWIRE Co-ordinator) and start to draft a business plan, this will help you to anticipate your financial needs.

When you have your plan, and you know how much you are likely to need, then consider all aspects of funding. Are there any start up grants in your area ? (your LiveWIRE Co-ordinator should be able to help you, or your local Business Link) If no grants are available, then consider the more expensive forms for borrowing (ie from banks)

Banks usually like to see a business plan, and in some cases may require some form of security (depending on the amount) before lending money. It will help if you have your business bank with the same bank as your personal account (particularly if your personal account has been run well, and not overdrawn) - but do shop around - as you correctly point out there are some attractive deals with some banks at the moment.

Good luck with the business planning and I hope your business is a success.

Drue