Difference between revisions of "Bank account"
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You can't get credit easily with no trading history. Luckily you don't need it. Loans from previous BJCs will cover your initial expenses, and soon after that you can open pre-reg. Once pre-reg is open you will quickly have enough money to pay all your bills in cash if you need to. | You can't get credit easily with no trading history. Luckily you don't need it. Loans from previous BJCs will cover your initial expenses, and soon after that you can open pre-reg. Once pre-reg is open you will quickly have enough money to pay all your bills in cash if you need to. | ||
| − | This means that you don't have to waste time asking the bank for credit, or trying to open an account with the hire company. | + | This means that you don't have to waste time asking the bank for credit, or trying to open an account with the hire company. (Though some hire companies do offer much better rates if you can open an account with them). |
When working with companies you don't know well, they may want you to pay up front and you may not want to. In this case you can offer them a partial payment up front, and the remainder on delivery or by invoice afterwards. | When working with companies you don't know well, they may want you to pay up front and you may not want to. In this case you can offer them a partial payment up front, and the remainder on delivery or by invoice afterwards. | ||
Revision as of 03:05, 13 May 2010
You need a bank account that belongs to your limited company. To open it, you'll need to provide your certificate of incorporation, ID of all your directors and no doubt a sheaf of carefully filled in forms.
Many banks offer business banking free for 18 months.
You may consider getting
- internet banking, so you can pay bills online by BACS
- a bank card for someone who will have time to run to the tool hire store during the event - i.e. not the main organiser.
- a bank card for someone who will be on site the whole time and can order things over the phone - probably the main organiser.
- the facility for the person who is running pre-reg to pay in large amounts of cheques easily, and get a receipt.
Past BJC experiences
BJC 2010 had an account with Alliance and Leicester. A&L do not have business banking facilities in-branch - it can be done at machines (if you have a bank card) and at the post office. This meant that for Emily to pay in pre-reg cheques without a bank card, she had to go to the Post Office with the cheques in an envelope. If the post office had lost an envelope with £1000 of cheques in, there would have been no comeback whatsoever.
In contrast, BJC 2009 used Nat West and they were happy to take cheques over the counter with no bank card, and give a receipt with the amount of the cheques written on it.
BJC 2008 used the Co-op and had no problems (except that the account took a VERY long time to open). They were given some lovely paying in books that had the facility to write all the cheques individually to keep proper track of them.
Invoicing
If you make out invoices to people, put your bank account details on there. Then they can pay online and don't have to send you a cheque. The easier it is for them to pay, the more likely they are to do it promptly.
Credit
You can't get credit easily with no trading history. Luckily you don't need it. Loans from previous BJCs will cover your initial expenses, and soon after that you can open pre-reg. Once pre-reg is open you will quickly have enough money to pay all your bills in cash if you need to.
This means that you don't have to waste time asking the bank for credit, or trying to open an account with the hire company. (Though some hire companies do offer much better rates if you can open an account with them).
When working with companies you don't know well, they may want you to pay up front and you may not want to. In this case you can offer them a partial payment up front, and the remainder on delivery or by invoice afterwards.
