The Best Business Bank Account For UK Dropshippers
E-commerce business owners have specific needs that need to be met by their chosen business bank account. It’s important that you choose wisely to ensure your business is on the right footing to grow and succeed.
What to look for in a business bank account
When searching for the best business bank account to suit your business, the first factor you may think of is the fees associated. It is one of the most important considerations as these fees can have a substantial impact on your business’s finances.
Of course, you should be looking for a business bank account with low or no fees. If you can find a business bank account with low fees, you will be making big savings over the course of the months and years you will be working with that account.
The majority of business bank accounts will charge fees of some description. This may come in the form of a monthly charge or a small fee for every transfer you make. It is unlikely that you will find a truly free business bank account so instead focus on low fees while considering how many transfers you will be making.
Initially, you will probably not be making as many transfers and therefore a bank account with a cost per transaction but no monthly subscription will suit you best.
Then, as your business grows, you will likely find that you are spending more in transfers fees than you would with a monthly subscription fee and that would be the time to switch.
My Recommendation: Tide Business Bank Account
The London-based team behind Tide, pride themselves on being the bank account provider for small businesses. Their business bank account is all about being a powerful and simple tool for UK businesses to utilise.
Their business bank accounts are provided by ClearBank, they are regulated by the Financial Conduct Authority (FCA) and they claim to be the leading provider of digital business banking services in the UK.
Fees
Below we will be focusing purely on the monthly subscription fees and the cost per transfer for Tide bank account products. There are other considerations including the speed of support you receive however we are just focusing on the main factors affecting your bank fees in this section.
At the time of writing, Tide of business 4 options to choose from:
FREE - £0 Monthly Subscription Fee - 20p per transfer
PLUS - £9.99 Monthly Subscription Fee - Unlimited free transfers per month
PRO - £18.99 Monthly Subscription Fee - Unlimited free transfers per month
CASHBACK - £49.99 Monthly Subscription Fee - 150 free transfers per month
For the full details of fees, click here for the Tide website.
Reasons for UK Dropshippers to use a Tide Business Bank Account
As an E-commerce business owner, you want to be able to run your business from anywhere in the world. The dropshipping business model offers incredible flexibility so you don’t want to be held back by your bank.
Fortunately, Tide offers you control over your finances from an app.
Here are some more features available while using Tide:
Direct Debits - See and manage any Direct Debits in the app
Scheduled payments - Set up or edit standing orders and one-off payments
Statements - Monthly and ad-hoc statements, download as PDF
CSV exports and more - Export your transactions in multiple formats or share with your accountant
Accounting integration - Instantly link your transaction feed to accounting software like Xero and QuickBooks
Manage limits - Easily review your account limits and request changes directly in the app
Get £50 when you open a Tide account today
If you use the button below, you can open your own business bank account with a £50 bonus.
The process only takes minutes and then once your account is approved, you can download the app and get to business.
Think about ways that this £50 could kickstart your business:
Cover your Shopify fees for the first few months of your business
Choose a Shopify paid theme to make your website stand out from your competition
Run your first Google Ads campaign to generate your first sales
What do you need to open your business bank account?
Here is a general list of 5 documents and information to have ready in advance. Being prepared will make opening your new bank account a seamless experience.
Key information
One document to prove your identity. Examples include:
Your full and valid UK or foreign passport
Your national identity photocard
Your full UK paper driving licence
Your full UK or foreign photocard driving licence as issued by a member state of the EU or the EEA
One document to prove your address in the UK. Examples include:
Your full UK driving licence
Your full UK or foreign licence photocard driving licence as issued by a member state of the EU or EEU;
UK or foreign bank or credit-card statement (must be less than three months old and not printed from the internet);
UK mortgage statement (less than 12 months old and not printed from net);
Council tax bill, payment book or exemption certificate (must be less than 12 months old);
A letter or bill from a utility company (less than six months old, avoid mobile phone bill).
Business-wise, you’ll need:
Your Companies House registration number (if you have one)
Details about your business including turnover, tax information and other capital
Details of all company directors or partners, including name, date of birth, address and National Insurance number
Can I just use a personal bank account?
Most personal bank accounts in the UK explain in their terms and conditions that the account is not be used for business purposes. Therefore if you were to use your personal bank account as a tool for your business, you would most likely be breaking the T&Cs that you agreed to when signing up.
Affiliate disclaimer - please note that if you sign up to a business bank account from Tide with my £50 referral offer, I will also receive a monetary reward.
