What’s business banking and why should you consider it?

When you’re running a business, whether it’s a brand-new start-up or a growing enterprise, money management quickly becomes more complex than simply sending and receiving payments. That’s where business banking comes in. If you’re wondering what a business account is or if you need one, you’ve come to the right place.

In this guide, we break down the basics of business banking and why they’re important. Plus, we discuss why providers like iFAST Global Bank* are offering features designed to make things easier for businesses. 

What is a business account and why do companies need one?

A business bank account is an account specifically created for business transactions. It’s similar to a personal account, but it’s designed to help companies:

1. Meet legal requirements

If you run a limited company in the UK, you must keep the company’s finances separate from your personal finances. A simple way to do this is to open a business bank account in the company’s name.

2. Keep finances organised

Mixing personal and business money gets messy quickly. A dedicated business account gives a clear view of cash flow, profits, and expenses.

3. Make taxes easier

When all business transactions are kept in one place, bookkeeping is far simpler – making life easier for both business owners and accountants.

4. Build credibility

Clients and suppliers are more likely to trust and take a business seriously when payments come from and are made to an official business account.

5. Access business-specific financial tools

Business accounts provide access to services not usually available with personal accounts, such as payment processing, invoicing tools, and international banking.

Why business banking isn’t always straightforward for start-ups and SMEs

Opening and using a business bank account isn’t always straightforward. Start-ups and SMEs often face challenges such as:

1.  Difficulty opening an account

New businesses, especially those without long trading histories, can struggle to meet traditional banks’ requirements.

2.  “Free” business banking that isn’t always free

Some providers offer free banking for a limited time or with usage caps. Exceeding those limits can mean unexpected charges.

3. Hidden or confusing fees

Domestic payments, international payments, currency conversions, and ATM withdrawals may come with unexpected extra costs.

4. Managing money across different currencies

For businesses operating globally, receiving payments in multiple currencies can often be slow and costly. In some cases, banks only offer GBP-only business accounts, creating additional barriers for companies that need to transact internationally.

How iFAST Global Bank supports start-ups and SMEs

At iFAST Global Bank, the priority is to offer solutions that feel accessible and transparent – especially for growing businesses.

Here are a few ways iFAST’s approach supports SMEs and corporates:

1. Interest-bearing Multi-Currency Business Current Account

Global operations aren’t just for large corporations anymore. Many SMEs work with international clients or suppliers.

iFAST’s Multi-Currency Business Account allows businesses to:

• Hold and receive funds in multiple currencies
• Earn interest on balances
• Avoid unnecessary conversion until it’s beneficial
• Simplify international operations

This means businesses can manage global payments with less stress and fewer added costs, which is ideal for travelling employees, international suppliers, or online global purchases.

2. No charges for receiving international payments

Receiving money from overseas can be unexpectedly costly with some providers.
iFAST removes this barrier by not charging fees for incoming international transfers, offering clearer cost expectations for business owners. While ATM providers may add their own fees, iFAST aims to keep their own charges simple and transparent.

3. No hidden fees

Most start-ups are working with tight budgets, so hidden fees are never welcome. iFAST’s goal is to ensure business owners understand costs upfront and aren’t surprised by add-ons for everyday banking activity. You can find their fee schedule on their website.

4. Key features and benefits businesses may find useful

Here are some features that can support many SMEs:

• Multi-currency banking for international operations

Make and receive payments around the world without constant conversion fees. iFAST offers multi-currency access to GBP, EUR, USD, HKD, CNY, JPY, SGD, AED and CHF. All nine currencies are protected by the Financial Services Compensation Scheme (FSCS), up to £120,000 per person per institution.

• Interest-bearing current accounts

Earn interest on business balances – something not all providers offer.

• Streamlined onboarding

A digital-first process can make it easier and faster for new companies to open an account.

• Clear pricing

Transparent fee structures help businesses stay in control of their finances.

 Is business banking right for your company?

Having a business account is more than a box-ticking exercise. It helps you to keep on top of your finances and gives you access to tools designed to help your company grow. If your business deals with global payments, an interest-bearing multi-currency business account might be a smart way to handle international transactions efficiently and reduce conversion costs.

Be sure to do your homework and check out customer reviews before opening a new business account. Reading other people’s experiences can help you make a smart choice that you feel confident about.

*This article is a paid advertisement in collaboration with iFAST. It's intended for informational purposes only and does not constitute financial advice. 

**The rate in the image was correct at the time this blog was published on 18 December 2025. Rates may have changed since then, so please check the iFAST website for the latest information.