Choosing a Checking Account For SMEs

By
Writers@Aspire
Published
November 19, 2020

Working on your business finances can be tricky, especially when you’re a new business owner. With a wide variety of business accounts available, how do you know which is the right one for you?


Well, most small and medium business owners opt for business checking accounts. These accounts make it easier to track and manage day to day expenses—a good starter account for new entrepreneurs. Let’s take a closer look at checking accounts and what they offer.


What exactly is a checking account?


Checking accounts are used for both business and personal finances. They allow you to make deposits, transfers, purchases and withdrawals with a debit card. Most checking accounts offer low fees—account holders only have to pay account opening fees, or monthly maintenance fees.


Unlike credit card accounts, checking accounts offer the most liquidity. They utilise funds that are available in your account, while credit card accounts use funds loaned to you by the bank.


Having a business checking account is great for managing your cash flow, especially if you’re just starting out as an entrepreneur. You’ll be able to monitor payments and expenses through your checking account in real-time, making it easier for invoicing and tracking.


How to choose the right checking account for your business


Choosing the right business checking account depends on your company’s needs. Current checking accounts on the market vary in terms of account features and fees which might be a concern to freshly minted entrepreneurs.  


Here’s a quick list of things you should look out for when choosing a checking account:


1. Account fees


Depending on how much cashflow your company has, account fees might be a point of consideration. Some checking accounts have higher monthly account fees than others, which can burn a hole in your already tight budget. On top of that, there are also minimum balances and additional administrative fees to look out for.


2. Account features


Being an entrepreneur means things move speedily. Choosing a checking account with features such as an online expense tracker or mobile application can help you to stay in the loop with your transactions.


Other things SME owners lookout for include possible partnerships and benefits that they’ll have access to if they do choose a specific checking account.


3. Branch banking and ATMs


Although most transactions can be done online, there might be times when you require to deal in cash. If you foresee yourself having to withdraw cash frequently, the number of physical bank outlets or ATMs might be  something you want to look out for in a checking account.  


4. Transaction limits


If you’re going to be dealing in big ticket items, you should consider the transaction limits of various checking accounts.


What are the available checking accounts for businesses in Singapore?


Here’s a quick look at a few of the most popular checking accounts in Singapore:


1. Aspire


Linked to the Aspire Visa Debit Card, Aspire’s Business Account is the top choice for SMEs in Singapore.


With no minimum deposit, monthly fees or account opening fees, this business account is perfect for startup and SME owners looking for a solution to their business finance problems.


Opening a business account with Aspire comes with the Aspire Visa Card, which offers 1% cashback on marketing and Saas spend—perfect for companies obsessed with running ads.


Manage your account through the Aspire app, which gives you real-time updates on incoming funds. You’ll also get to enjoy easy accounting processes through Aspire’s Xero integration.


2. OCBC


OCBC’s Business Growth Account is another popular checking account amongst business owners in Singapore. Tied to the OCBC Business Debit Card, account holders will have access to more that 1,200 ATMs islandwide.


This account ranks high with no initial deposits and a low monthly fee of just S$10. The OCBC Business Debit Card connected to the account offers 0.2% rebate on all local currency spend, and 0.5% on foreign currency spend, making it an ideal choice if you’re toggling between local and international dealings.


3. DBS


Last but not least, we have the DBS Business Digital Account. Similar to both the Aspire and OCBC Account, this account does not have any minimum deposits. However, it does come with a monthly account fee of S$18.


Account holders can apply for the Visa Business Advance Debit Card, which offers 0.3% cash rebates on all charges. Cardholders also have access to complimentary travel accident insurance.


Of course, these aren’t the only business accounts available in Singapore. Head on over here to find out more about the best business accounts in Singapore.

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