How to Switch to a Better Business Bank Account

You may be putting up with poor service from your business bank account provider because you assume they are all the same, or you assume that it’s just too complicated to switch all your banking details. Well both these assumptions could be costing you time, stress and money unnecessarily because from February 2008 it became easier to switch your bank accounts thanks to the Government Switching Package.

An overview of the Government Switching Package:

• Requires your existing bank to provide you with a list of all direct debits and credits for the last 13 months.
• Allows you to take that list to your new provider to have them set up the same payments and accept the same credits.
• Can provide letters to everyone who debits or credits your account, advising them of your new bank account details.
• Provides all Australians with one complaints hotline and enquires website.

How to Choose a Business Bank Account for the Switch

If you are frustrated about the fees you pay on your business bank account or you feel that the access you have to your business funds could be better, then there is likely to be a better business bank account out there for you.

Choosing a better business bank account:

• Determine your needs and what you’d like your account to be able to do. You need to know what you’re looking for to be able to find it, so carefully review your past business bank account statements and look for the places where you are charged an excess of fees to find the transactions which you need included on your new business bank account. Also think about the way you’d like to be able to use your account because chances are there are features available to make those ideals a reality. Also determine how much you will be processing through your business bank account in a month as some banks will be able to negotiate better deals for larger amounts, and if you have a smaller cash flow, you can find out from the beginning whether a bank can help you with a better account.
• Compare the fees, features and extras on a level playing field. As above, some banks will offer special deals for larger transaction amounts passing through your business bank account. As such, make sure you are comparing the fees and any bonuses or extras based on what your business will be processing in a month, rather than rates listed for a minimum balance or transaction amount.
• Look for room for growth with your business bank account. Hopefully your business is growing and will continue to do so; therefore you need to make sure your business bank account can grow with you in the near future too. While switching business bank accounts has been made easier, you don’t want to be making the switch every few months as your needs change. Instead look at your business needs now and whether they can still be accommodated in the future, for example is there room for good rates on international transfers if you expand operations overseas, and is there an option to add a credit card payment system for your customers down the track?

How to Switch Your Business Bank Account

Now you know what you’re looking for in a better business account, you can start preparing to make the switch as simple and painless as possible. In February 2008 the Australian Government announced their plans for their switching package and implemented those plans in the same year. This means that now you can make switching your bank account faster and easier, and this encourages the banks to remain competitive, work to keep your custom and allow you to negotiate a better deal.

The Government Switching Package:

• Requires financial institutions to provide customers with a list of all direct credits and debits for the previous 13 months. This allows you to get a complete picture of all funds which come in and go out of your business bank account, so you can have a central list to work from when changing providers.
• You will need to check whether your new provider allows for regular direct debit payments to leave your account, and make sure that the ‚Äòpay anyone’ internet transfer feature is activated on your new account.
• Opening your new account you can give your new provider the list of direct credits and debits from the last 13 months. You can also ask your new provider to set up these payments to be made automatically to and from your new account. Some financial institutions will also generate letters with your new account details which you can send to companies and individuals to advise them of your new payment details.
• There is a single customer complaint hotline established for the switching process. If you feel the bank or financial institution you are switching to or from is not complying with the government’s switching package, you can call 1300 300 630 for a first point of contact. The hotline is provided and maintained by the Australian Securities and Investment Commission.
• The government is also educating the public about their rights and choices. At www.understandingmoney.gov.au you can learn more about your rights when you switch business bank accounts and the government has provided information and downloadable brochures about the process.
• There will be an ASIC-led industry review of entry and exit fees on bank accounts. With switching made easier, you want it to be affordable too, and so the ASIC will be investigating the entry and exit fees charged on mortgage accounts in particular, to provide you even better information about your rights and what to expect when you switch bank accounts.

There is no longer any reason you have to put up with bad service or continuous fees on your business bank accounts. It is easier than ever to switch your personal or business bank accounts to get a better deal and intuitive service to make your finances easier to manage, and to simplify your life.