a) Business account

Nearly all small businesses need to have a business account.

If you have dealt with a bank in a personal capacity for any length of time, then you have a track record with them and they would be more likely to favourably consider your request for a business account.

It is important to use the business account only for matters relating to the business – keep your personal banking totally separate from the business.

With a business account you will receive a monthly bank statement, which sets out all your deposits and withdrawals.

You need to check this against your own books and make sure that it is correct

(b) Overdraft and short-term loan

An overdraft facility is a formal arrangement where the bank agrees that your account may go into debit (overdrawn). It will usually be for a relatively short period of time and the interest rate may be negotiable to some extent

A short-term loan is usually for a specific item, for example, a vehicle or equipment, and is repayable over a fixed period of time (usually three or five years).

Capital with interest has to be repaid, but you may be able to negotiate the interest rate.

You may need a short business plan, with a cash flow projection (CFP), to convince the bank of the need for and ability to repay, a loan.

(c) Online banking

Banks encourage customers to bank online.

This provides a convenient 24-hour banking service which allows you to do almost anything except deposit or withdraw money.