How can I easily change my business bank?

Why change your professional bank?

There are a number of reasons why a company or self-employed person might want to change professional banks:

High prices

The primary motivation for changing banks is to save money.

According to the OFE or Observatoire du financement des entreprises, 0,69% of company sales are devoted to bank charges. Although this figure may seem low, it represents an average of 1,700 euros in annual costs, i.e. 10 times more than a private individual.

This makes it all the more worthwhile to shop around. You can reduce your company's expenses with a more affordable bank.

Poor customer service

Customer service quality is a decisive factor in choosing a bank . All the more so in the case of digital banks that have no physical branch.

It's not uncommon to want to change banks because of poor or unresponsive customer service.

Unsuitable services

You may also want to change pro bank because you are looking for a bank that offers services better suited to your company's activities For example, your current bank doesn't authorize overdrafts, doesn't offer account management via your cell phone or doesn't guarantee deposits, so it's logical to want to switch to a bank that offers services better suited to your needs.

Whatever your reasons, switching from one professional bank to another is not a trivial decision: you need to choose wisely. Here's our advice to help you find THE bank that's right for you.

Analyze your needs and compare offers

Before you begin your search for the ideal institution, it's a good idea to analyze your own financial needs. This will help you identify the offers that best meet those needs.

Payment and collection methods

First and foremost, you need to draw up a list For example, if you have foreign suppliers or customers, you'll need a package that includes the following foreign payments .

On the other hand, if your business is highly connected, you'll also want to choose a bank that allows mobile payments, for example.

Financing and savings products

If you're planning to expand your business, you'll need to you need to ask yourself whether the bank offers any solutions for this. If so, what are the loan conditions, interest rates, monthly payments, etc.?

Similarly, if you want a savings account, you need to compare the different savings offers.

Management and accounting tools

To manage your employees' salaries or to facilitate the work of your finance department, you have need tools to facilitate your accounting management for example:

• Online account management

• Automatic declaration to URSSAF

• Dashboard production

• Etc.

Criteria for choosing a new business bank

Once your expectations in terms of banking offers are well defined, here are 3 criteria to take into account to make the right choice:

Bank charges

Several banks can offer the same services at different prices . So don't hesitate to compare and take advantage of the competition. The goal? Find the best offer at the best price.

In addition, choose a professional bank that matches the scope of your activities. If you're an SME, you won't have to pay the same rates as large corporations.

Accessibility and customer service

Would you like to manage your account yourself? If so, you can choose an online bank. This means you can manage your account via your computer or cell phone, with customer service available over the Internet.

You can also choose a bank that offers support from a bank advisor. This will enable you to delegate the management of your business account to an account manager and interact more directly with your bank.

Customer reviews

To avoid unpleasant surprises, consult customer reviews. Taking into account the reviews, you can have an overview of the bank and the quality of its services .

6 steps to opening a new business account

Once you've decided on a particular bank, there are 6 steps to making the switch.

Step 1: Gather the necessary documents

To save time, you can gather the documents in advance before contacting the bank. The following documents are required to open a new business account:

• Proof of identity of directors National identity card or passport

• Proof of company address : kbis, lease contract, invoices, internet subscription, etc.

• Proof of company existence Kbis extract

The bank may request additional documents. They may also vary according to your legal status.

Step 2: Open an account

Once you've collected all your documents, fill in the account opening form and wait for your account to be activated.

Online vs. in-branch

The main difference between a traditional bank and an online bank is that the latter does not have no physical branch Everything is done online, via your PC or any mobile device. Your pro account opens in just a few minutes.

With a traditional bank, on the other hand, you have to take the necessary documents to a branch yourself and sign the documents required to open the account.

What's more, online banks often offer you a bonus when you open an account, which is not the case with a traditional bank. Several neobanks even offer one-month free trial.

Duration and validation

Once you've signed up, you'll need to wait one to several weeks for your account to be activated with a traditional bank, whereas with an online bank, your account will be up and running within a few days. 24 to 72 hours .

Once you've opened an account, you'll be given an IBAN or Bank Identification Number.

Step 3: Inform your partners and customers

A change of bank implies changes in your activities. change your bank details in all your company's commercial documents such as general terms and conditions of sale, invoices and quotations, etc.

You must also notify third parties interested in this change of bank details:

• Your suppliers

• Your customers

• Your subscriptions

• Your landlords

• Etc.

This is necessary to ensure that any future transfers or payments will be made to your new pro account.

You can inform these interested parties of this change email pair .

Step 4: Communicating with organizations

Entities that must make direct debits from your bank account must be aware of your account change . The organizations to be informed are :

• URSSAF

• The treasury

• Insurance

• Etc

Step 5: Transfer banking operations

Since there's no such thing as bank mobility for a pro account, you have to handle the transfers yourself.

Transferring funds

The easiest way to do this is to look at your bank statements for Last 13 months current transactions for identify recurring operations . You can then transfer your credit or debit transactions from the old account to the new one. This may involve :

• Pre-authorized debits

• Recurring transfers

• Cheques not yet cashed

• Etc

Account balance

Transferring your account balance should not be complicated. However, it is not advisable to empty your old account completely.

Leave some leftover which will be used to cover pending operations such as :

• Cheques not yet cashed

• Bank cards not debited

• Etc

Make sure you cancel unnecessary services on your old account such as insurance and bank loans.

Step 6: Close your old business account

Once you've ensured that all your transactions in the old account have been transferred to the new one, you can move on to the final step. With the exception of differences specific to each bank, here are the general steps to follow to close your business account:

The closing letter

Usually, the bank requires you to send your letter by registered mail with acknowledgement of receipt. an account closure letter .

Return of means of payment

You must also hand over to the bank all means of payment in your possession :

• Bank cards

• Checkbooks

• VSEs

• Etc.

For added safety, you can cross out the numbers and your name on the checkbook with a pen . Don't forget to cut up your bank cards before handing them in. The easiest way is to enclose with registered mail .

Downloading documents

Think about download all the documents you need for your business before the effective closure of your old account as :

• Account statements

• Transaction history

• Bank details

• Etc.

After receiving the letter, your account will be closed after one month. approximately 10 days . Please note that closing an account can generate costs at some banks, even if it's quite rare these days.

Can I open a second business account?

Legally, nothing prevents you from holding several business accounts in different banks. For a self-employed person or a company, this can be a strategic choice.

The advantages of a second account

Having a second business account has many advantages. Here are 4 of them:

Risk diversification

Dividing your funds between two separate banks allows you to reduce risks if one of your banks malfunctions:

• Locked account

• Ceiling limit

• Computer problem

• Etc.

Opening a second pro account will guarantee more safety .

Negotiating bank charges

Banks will offer you more advantageous services if they know they have competition. You'll be able to renegotiate the terms of your banking contracts.

Regulations and obligations

As you now know, French law permits the opening of several accounts for a single company. There are, however, other obligations concerning pro accounts.

Dedicated accounts for micro-entrepreneurs

Any company with over 10,000 euros in sales is obliged to open a business account dedicated to its activities.

In fact, according to 2019 Pact Act If your annual sales exceed 10,000 euros in two successive years, you must open a business account dedicated to your professional activities.

Sample business account cancellation letter

Here is a sample account closure letter:

(Section with items to be written at top left)

Last name / First name

Address

Postal Code / Ville

Phone

(Section with items to be written on the right below the previous section)

Bank name

To the attention of [name of your former consultant].

Address

Zip code / City

Done at [City], on [date].

(Part to be written on the left below the previous part)

Object : Closing a bank account

Dear Sir or Madam

I hereby inform you that I wish to cancel the account n*[account number] opened with your branch and of which I am the holder.

I would therefore be grateful if you could take all the necessary steps to close my account definitively. If necessary, please transfer any credit balance to the following account: [RIB details of new account].

You will find enclosed all the means of payment linked to this account, i.e. a bank card and a cheque book. The current balance is available until the account is closed to cover future payments and direct debits.

Thank you in advance. Yours sincerely

[Signature] (on the right)

How much does it cost to change professional banks?

In general, this will cost you nothing. However, it is possible that some banks charge fees for certain operations such as PEA transfers or account closure.

Which professional bank to go to?

Hero is an ideal choice if you're looking for a pro 100% online and 100% free .

We stand out from other neobanks for one particular reason: we offer payment facilities.

Your bank pays your suppliers on your behalf, leaving you free to concentrate on your core business. 60 to 90 days to pay or the option of repayment in 3 or 4 instalments. With Hero, you get a free pro account with 3 payment methods: credit card, direct debit and bank transfer. It's the ideal solution for micro-entrepreneurs and very small businesses.

In short, Heropay is :

• A free pro account with physical and digital bank cards and a deferred payment option

• An online payment solution at unbeatable prices

• Flexible, no-obligation financing solutions (BNPL in B2B, accelerated payment on marketplaces (Amazon...), receivables and debt financing)

So.., change business account is a common operation if you want to find a more suitable or affordable offer for your activities. All you need to do is comply with the necessary formalities. Hero is an ideal choice, thanks to its 100% free online account and easy payment options.