Best Bank for Small Start+up Business

bunkr on 10/09/2021 - 20:36

Hi OzB,

Looking for suggestions.

My wife recently started a small business operations as a sole trader. She had been using her personal bank account (ING) for all transactions.

However as the business has started to grow, she is looking for a business bank account for her business. In terms of things which are important for her, she needs a bank account which allow her to make international transactions at no cost (like her personal ING account). And obviously looking to pay zero or close to zero fees.

Would you have any recommendations. Anything else we need to consider when looking for business bank account?

Financial

Comments

  • Mechz on 10/09/2021 - 20:42

    Just get another account with ING?

  • Indomietable on 10/09/2021 - 20:45

    Commbank and I use wise to transfer

  • Platinumtelecom on 10/09/2021 - 20:52

    Airwallex for international transactions on a business account seems good

  • mini2 on 10/09/2021 - 20:56

    You sure the transfers are really free though? They could hide behind the facade of fee-free but giving your wife a shit rate thus ended up being a hidden cost.

    OFX should be alright. I've only used them when they were called OzForex.

  • jpl on 10/09/2021 - 21:09

    It is hard (or impossible) to find a Business account that will act or behave the same is your personal ING card in terms of international transactions.

    Unfortunately services like Wise and OFX are quite troublesome if your wife has lots of transactions and the suppliers only take credit / debit cards.

    Maybe she can have one Business account from any bank handling inbound payment so that it appears professional to customers and for outbound overseas payment, open another ING account and force herself only to spend the money from this account for business so that it will not mix with personal expenses.

    In accounting software, setup 2 bank accounts in current asset.

    • bunkr on 11/09/2021 - 13:05

      Thanks. That's helpful. If she performs many business transactions in a "personal" bank account, does it matter? Will a bank hold her up and say that this account is not meant for business?

      • jpl on 11/09/2021 - 23:50

        Bank doesn't care how you spend the money.

        Lots of sole traders use "personal" bank account. Just keep good records and make sure to resist the temptation to use the money for personal use. Not because it is illegal, just very tedious when she does the accounting.

    • Indomietable on 11/09/2021 - 19:50

      Unfortunately services like Wise and OFX are quite troublesome if your wife has lots of transactions and the suppliers only take credit / debit cards.

      Make sure you use wise for business : https://wise.com/au/business/

      Wise allows you to create debit cards across multiple locations. Not sure what problem you are facing but wise have no issues in doing hundreds of outbound transactions in a day.

      • jpl on 11/09/2021 - 23:44

        You must be the more lucky one. Others were not so lucky.

  • Kyle-K on 13/09/2021 - 15:41
    +1

    Just remember OP a lot of the companies recommended while are good options are not banks. You should definitely supplement them with a real bank account.

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