Why separate your business and personal accounts
There are a lot of things involved in setting up a business, from creating the business idea, to preparing a business proposal, and working out how your business will run. A lot will depend on the size of your business and the way in which you want to operate.
The cost of setting up and running a business depends on a number of things, such as the size and structure of your business, and any overheads your business needs to get going and stay running.
Businesses can be financed a number of ways. We provide a range of products including accounts, loans and credit cards, specifically with business needs in mind.
Your business needs will determine how much money it will cost to set up and run your business. Consider these needs:
This will depend on your business needs. Determining the amount can be tricky so you might like to seek advice if you’re feeling in over your head. Business Queensland suggests a number of ways you can go about researching the cost of setting up your business. These include:
Cash flow is simply the money coming into your business via revenue and money going out via costs. While it is a simple concept, it is important to practice good cash flow management to ensure your business is successful.
Cash flow can be affected by:
Poor cash flow could mean you might not have enough money in your account to pay expenses when they are due. This could result in issues such as suppliers cutting supplies, or foreclosure by a bank.
There are a number of ways to finance the start up and running of a business. The size and type of your business may determine how much you’ll need and whether you will need to seek extra funds via a business loan or overdraft.
The benefit of using savings is that you will not pay any interest or loan fees, helping to keep your debt as low as possible. You might like to consider ways to save money before you launch into your business, or think about continuing on with your current work to give yourself a financial boost while you set up.
Once you have worked out a business plan, including a budget, and how much of your savings you can use, you will have a better idea on whether you will need to borrow money and how much. It’s important to understand how much taking out a loan will cost you in interest and other fees, and what this will mean for your business. Our article on Tips for Applying for a Business Loan could help you get prepared to borrow.
Browse our range of specifically designed business accounts.
Our business loans are designed to help you reach your business goals. Whether it be for a vehicle, or to help with cash flow.