If you’re just starting up a business, you’ll find that most business banking UK providers will offer the first year or two of banking free. That means cheques, paying in, BACS payments and transfers will all cost nothing for the first year or two. But, don’t forget to look beyond the first year, because when the charges do come in, business banking can be expensive.

Even if you have an existing business banking account in the UK, it’s always a good idea to look around. Many of the banks will offer incentives to switch, or may be able to offer you preferential terms on your business banking as an incentive.

In the end it all depends on what services you really need. For example, if local counter service is important, that may dictate your choice. If on the other hand you need funding, then an individual who believes in your business and is prepared to back it at the right rates may be much more important than the day to day cost of your business.

Prior to the credit crunch, banks and building societies were happy to lend to solvent small businesses at competitive interest rates. However, their appetite for lending to this sector has now diminished drastically.

Two-thirds of small businesses in the UK believe that they will have to look for an alternative provider of funds when loooking to raise finance in 2012.