Opening a business account is a crucial element of starting up a business. While it is not a legal requirement, the benefits listed below must be considered by all fledgling businesses. Please, don’t forget it.
• Some banks offer a period of free business banking upon opening your account.
• Your account will often be supervised by a named business manager. This means that you will have a valuable working relationship with a business specialist who will be familiar with, and sympathetic to, your unique business needs.
• Your business manager may recommend business insurance, which could offer valuable support if the unexpected happens.
• A business overdraft or business loan may provide you with much more scope and flexibility to raise finance than a personal banking account ever could.
• A business credit card is another flexible solution to developing your business, and could come in handy for making large one-off payments or for handling expenses.
• Allowing multiple employees of your business to access a single personal banking account would be a complicated procedure. However, this is a simple process with a business account, which could prove particularly useful if you are planning on growing your business and taking on more members of staff.
• If you are thinking of buying property for your business you could ask your business manager about a commercial mortgage. Commercial mortgages can usually be arranged directly through the business service of your bank.
• As well as providing you with internet banking, your bank may also offer you special deals on accounting software and other IT needs.
Keeping a business account separate from your personal banking account is a very good idea for several reasons. To begin with, your cashbooks will be a lot easier to balance. And, if you choose to employ an accountant, it will be simpler for him, and cheaper for you, to organise your finances. More crucially however, opening a business account, like registering your own business name, is a significant step in getting your business off the ground, and turning your great business idea into a reality.
Running your own business can be very rewarding however it is certainly challenging too. You’ll find yourself working long hard hours and making difficult decisions day in day out, so it is definitely not an easy option. A heavy dose of realism and plenty of research is a must before you take that first step and approach your bank manager for finance.
In addition it is sensible to create a good business plan when you are starting up and it cannot be overstated how important a business plan is. Although the initial objective of the document is to help you raise finance for the business, it will also help you understand what you wish to achieve from the business and is an essential document to review the performance against your projections and can alert you to anything that is not going according to plan.
Use this link for more useful information on Business Banking.
For a first time home buyer, you are taking on a monumental task, undoubtedly the largest task you will ever venture upon, financially speaking that is.
Unfortunately, most of us don’t have huge sums of money sitting around in our bank accounts to go out and pay for a house in cash. We must find a lending institution that will allow for us to borrow the money. The fun part of buying a home is going out to look at various houses for sale, and walking through what could very well be your dream home. But before you spend all of your time visiting open houses and walking through homes for sale, you will want to figure out how much you can afford.
The last thing you want happening to you, is finding your dream home, making a bid, having your bid accepted by the seller, than finding out a week later that you will not be purchasing the home because you don’t have the income to back it up.
To avoid this heart breaker, you will want to acquire a preapproval from a lending institution.
The preapproval process involves an in depth look at your financial situation. The lender will examine your credit, verify your employment and annual salary, take a close look at your outstanding debt as well as your assets, and determine what money if any you have available for a down payment.
The preapproval process could take as long as a week, but it is time well spent. Once you are armed with a preapproval, you will know exactly how much you can spend.
The preapproval is also very powerful because the seller of the home wants to be sure that you have the financial backing to purchase their home if they decide to sell it you.
The preapproval is not to be confused with the pre qualification. The pre qualification is determined by a quick conversation with a loan officer who determines your spending power from a verbal standpoint. You are asked a series of questions about employment, outstanding debt, credit, assets, etc. Once this information is taken, the process pretty much stops right there. What the lender believes you can afford is merely an estimate on their part, no verification of is done on the information you provided them with.
Be careful, this estimate could come back to haunt you if it was over estimated, so take the time and get a preapproval.
When purchasing a home, allow for time to be on your side. Take your time and find the right lender and realtor for you. And most of all, take your time, so that you may find the perfect home for you.
Business Banking - a Crucial Element of Your Business + Getting Pre-approved For A Loan