If you run your own small business then you may be rather astounded as to the cost of a business bank account. They can be extremely pricey, charging for withdrawals, deposits and transactions and paying no interest and so it can be tempting to just use a current account instead.
There is no reason why a business cannot be run in its own current account and in fact it does not even need a separate account, although it helps a lot to keep the money separate in order to help balance the books at the end of each month. If banks realise that you are running a business account in a current account they may ask you to change to a business account and it is likely that you will be reluctant because it is so expensive.
However, there are several very good reason why it is a good idea to put your business finances through a business account. Firstly if you get cheques made payable to the business name then you will only be able to cash them in the business account and so this could cause problems for you if you do not have one. Of course some people only have cheques made out in their name and many businesses run without ever receiving payments by cheque and so this is quite irrelevant to them.
However, all companies may need to borrow money at one time or another. To prove that you are a reliable company it may be necessary for the bank to take a look at your accounts and assess how good you are with your banking. If you do not bank under the business name, then they will not have any previous banking records to look back on which could mean that they may not consider lending you the money.
There is at least one bank that is currently offer a free business account. There are certain charges but basic banking is free and this could be worth investigating. Business banking is getting more competitive as more people are starting their own businesses these days and so it may be worth trying to negotiate a good deal.
So if you have a business or are thinking of starting one and have no business bank account it is worth thinking hard as to whether it is worth getting yourself one. It could make a big difference if the business ever needs to borrow money and that could be a likelihood, should you wish to expand in the future or should finance become a problem.