Who needs banks

One of the first meetings an entrepreneur sets up, is with his bank manager to discuss opening a business account.

Many still believe this partnership between enterprise and bank is a marriage that will guide and support the business throughout its life.

My own experience and that of most business people suggests this hasn't been the case for some time and its getting worse. Service levels have dropped drastically over the last ten years while charges have risen and in some cases become quite devious. For instance Barclays allegedly deduct daily debits first, potentially putting the account into overdraft before applying credits.

If you are about to start a business, before you commit your future to a high street bank take a look at what else is on offer;

• PayPal is becoming an ever more trusted way of paying online


• The Post Office will accept cash deposits without charging whereas banks penalise those depositing cash


• Online accounts that don't offer branch access are often free, Investec is worth a look


• Funding a new venture shouldn't be difficult in an era when savings interest is so low. You just have to let potential investors know you are looking for funding. Write a micro business plan and email to people who might either invest or recommend you to a friend.

I'd far rather invest some of my money in an exciting start up than leave it in the hands of the banks.