If you already established your first startup, you’ve probably noticed how many initial costs there are. Therefore, it’s better to save money on where it’s the easiest to do in order to fully focus on growing your business.
1. Online Platforms or Mainstream Banks?
It all depends on the type of your business.
Which are the most popular business accounts?
When it comes to regular business banking - HSBC Business Banking and CitiBank Business Account seem to get frequent positive reviews. However, if you already have your personal account in a particular bank, you can set up a meeting with a representative and discuss business account opportunities, because it may be convenient for you to handle all of your finances in one place and they may also get you some discounts for being a loyal customer.On the other hand, online financial platforms got very oriented towards startups and small companies. They offer features such as mobile apps to handle your transfers on the go or let you connect their systems to your site to keep track of the sales and deals.
What are the most popular online business accounts?
PayPal is currently the most popular platform, however they are not the cheapest on the market, so maybe it’s worth considering some alternatives?Another popular choice is TransferWise, you can read a review of TransferWise for Business account here. Their main feature includes support for multiple currencies, which you can hold in one “borderless account”. With good exchange rates it makes it easy to run business internationally with them.
2. Check if you will be able to extend your business
For now you might want to settle only for local operations, however nowadays, with so many people around the world having an internet connection and with a well-developed international shipping market, an online store can easily get traffic from potential clients all over the world.Just make sure your account supports various currency conversions and check if the rates are good, because what’s the point of receiving overseas payments if the fees eat up half of your revenue. Also remember to check if you will be able to send and receive international payments. While online platforms usually don’t make it too complicated, mainstream banks can charge you even just for receiving a payment from other country.
3. Watch out for account monthly costs
At first your business might not generate too many sales, which is okay. However, some banks or platforms add “inactivity” penalties and charges if there are not enough transactions on your account each month. It may generate great costs especially if your business takes breaks at some parts of the year or simply have worse sales periods.
4. Make sure it has API support for e-commerce
Depending on the character of your business you may want to check how good the platform’s API. It will be very useful if you plan on setting up an e-commerce store. Some platforms let you automatically track the sales or handle customers transactions and invoices.This makes it easier for your customers to pay for your products or services. But it also makes it easier for you to do the accounting and keep track with everything. That is the primary reason for PayPal being that popular. You can find their logo at almost any checkout online. Payment gateway allows users to conveniently pay for your item or service using their credit card or paypal account.
5. Research and compare the offer
Last but not least remember to compare the offer and fee structures from the companies that caught your interest. It may sound obvious but don’t forget to read some first hand experience comments and reviews from other business owners.There are various platforms which let you do this research conveniently.
For example, a site like TrustPilot.com collects customers’ ratings and reviews of different services. You can read both positive and negative reviews to get a full picture of the company of your choice. There are also places where you can read expert articles and research about certain companies. Here you can find some popular in-depth overviews of various money transfer and business services and platforms such as TransferGo review, MoneyGram Review, Remitly Review or WorldRemit Review.There is also Finder.com which provides convenient cost tables and comparisons and Wirly.com, which combines both expert and user reviews and lets you filter the offer available on the business account market depending on the features you are interested in.
With these few essentials in mind, you are now ready to save some money for your business by choosing the best and cheapest account for it.