Cashflow can make or break any business, especially in the early stages of setting up a business. So it’s crucial to find the best bank to support your company when you’re starting out, building a relationship with them that will see you through any barren spells.

Look at the overdraft the bank will extend to you and the credit facilities on offer to new businesses. Indeed, the best strategy might be to handle your business finance with the same bank that holds your personal accounts, as they might look more favourably upon you. This isn’t guaranteed, though, so check carefully.

Other things you should look into include invoice financing, which can really take the load off your company in the first year when late payers and the odd bad client can make the difference between success and failure. You should even see how long it takes cheques and BACS payments to clear as these differ from bank to bank.

Ask what your bank can do to support your business, too. You might be surprised that a business-friendly bank will offer everything from an overdraft to business mentoring in extremely helpful cases.

Whatever you do, make sure you talk to a variety of banks and always remember that cashflow is one of the biggest issues facing a new business. Keep this in mind when you shop around.

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