Corporate banks and building societies are the UK commercial banking industry's two main types of financial institutions. Your first choice when looking into UK commercial banking would naturally be corporate banks like Barclays, HBOS and Alliance & Leicester, but the lesser-known building societies sometimes offer less expensive, more secure commercial loans. With a commercial bank, UK businesses may pay higher rates.
The main differences between United Kingdom commercial banks and building societies are:
1. Shareholders own and run UK commercial banks. Building societies are mutual banking institutions; opening an account gives you ownership in the society.
2. Money from commercial banks in UK regions translates into payouts of dividends to shareholders; building society funds traditionally mean lower-rate mortgages and higher interest rates on savings accounts.
3. Shareholders vote on policy and practice changes for commercial banks in Britain; account holders have that privilege in building societies.
Action Steps
The best contacts and resources to help you get it done
Decide between commercial banks in the United Kingdom and building societies
Research the benefits each specific UK commercial bank and building society offers. If you work with a small budget, focus on saving money and appreciate the security of exclusive commercial banking in the UK, partner with building societies. With a commercial bank, UK lenders work with high credit risk clients and provide larger sums of money.
I recommend: Find a variety of options from Barclay’s Commercial Bank, which includes commercial solutions for
private finance initiatives and
global operations. Visit the website for Cheshire Building Society for
financial planning or to review
personal loans and other lending options.
Find the loan package that's right for you with UK commercial banking
Search the hundreds of different packages offered by commercial banks in the UK. Many different types of loan packages exist, like commercial real estate loans, commercial mortgages, income property loans and seasonal commercial loans. It should be easy to find a loan package that fits.
I recommend: Look at the
types of loan options available with Decision Finance. Answer a few questions on The British Bankers Association website’s
Business Account Finder to browse commercial banks in UK areas and accounts they offer specific to your needs.
Meet personally with potential business partners at commercial banks in London
Know what type of business environment you are entering before you set up meetings. Meeting face-to-face with a financial representative at both institutions can solidify or change your decision. Tell your adviser you are looking into both options; they may be more willing to negotiate terms.
I recommend: Commercial mortgage specialists like B2B Mortgage, which provides
quick quotes, work as your go-between with commercial banks in the UK. Contact
Commercial Loan Advice for information on commercial loans, mortgages and advice.
Tips & Tactics
Helpful advice for making the most of this Guide
- Many UK commercial banks are now taking on their investments in US sub prime mortgages; have a solid financial package ready when you approach United Kingdom commercial banks.
- If you opt to use a building society to do your commercial banking in the UK, ask about possible demutualisation and future plans.
The official source of Commercial Banks in the United Kingdom is
the Commercial Banks in the United Kingdom page at Business.com
Featured Vendors
Small Business Credit Cards0% APR Business Cards. Use our search engine to find the best cards for rewards, cash back, travel and other benefits. Compare and Apply Now!
CreditCardApplications.com
Related Resources from Business.com
Comments
Is any content on this page inappropriate? To let us know, please 
