Transferring business accounts between banks
Negotiate improved terms with your existing bank
Once you have compared your current bank account with others on the market, either you'll know that you already have a competitive deal or you'll be aware that better options are available.
Even if the latter is the case, you shouldn't necessarily have to switch banks. Instead, you could take the opportunity to negotiate better terms with your present bank.
Increased competition in the business banking market and the greater ease of switching accounts will make it more likely that your bank will be willing to discuss revised terms with you. If you have got a long-standing history as a good customer you'll have far greater leverage than if you have a record of continuing cashflow problems.
Approach your bank - ideally through your relationship manager - and set out the results of your research. Explain why your current arrangement falls short of others available, illustrating how other banks' deals could deliver greater benefits to your business.
Ask your bank if it's prepared to amend the terms of your account before you consider taking your business elsewhere. Banks will often consider changing specific charges or the interest rates on a loan or overdraft.
The advantage for the bank is clear - it retains your custom. The advantage for your business is equally significant - you'll have managed to improve your business banking package without risking the disruption of switching accounts.
Subjects covered in this guide
- Introduction
- Advantages and disadvantages of switching bank accounts
- Comparing different bank accounts
- Negotiate improved terms with your existing bank
- Make your business attractive to other banks
- How to switch banks successfully
- Use different banks for different services
