Setting up to start

Set Up a Bank Account
One of the first things you must do is set up a Bank Account for your Business with one of the major banks. A bank is an institution, which collects funds from the general public, safeguards them and then makes them available back to the owner of those funds when required. It also loans out funds belonging to the owner (at interest) to other parties who are in need of them and can provide security, plus charge a fee for their use.

Basic Functions of Banking
The basic functions of banking are:

  1. The collection of funds from the public.

  2. The safeguarding of those funds.

  3. The transfer of those funds from one person to another without their leaving the bank (this is done by means of cheques or automatic transfer through the banking system, or via the Internet etc)

  4. The lending of that money to other parties for a return or reward called interest.

Dealing with Your Bank and it’s Managers

Your bank is a provider of services and because of this, you as the customer, is someone who is very important to them. Remember, without customers the bank cannot exist. Make sure you are not difficult to deal with because even though banks work hard to provide good customer service, one half of the problem is usually the customer’s.

If the service you receive is less than satisfactory, make it known to the bank in a pleasant manner. See if the problem can be rectified. When discussing any problems you are having, make sure you are not demanding and that you are courteous in all your dealings. If you can maintain this type of approach, then many potential problems may be easily defused.

It’s a good idea to make yourself known at the bank, so introduce yourself to the bank manager and some of the people you will be dealing with on a regular basis. As you visit from time to time, say hello to familiar faces, because this makes it easier when you have queries that often arise within your banking transactions.