When most small founders start on their entrepreneurial journey, their first instinct is to use their personal bank account for all their business transaction. While this may seem reasonable in the beginning, it’s only a matter of time before you end up moving to a 'business bank account' or a 'business account' from a payment services provider.
Here’s everything you need to know about making the switch.
If you’re not sure when to make this transition, here are some of the most common warning signs that may encourage you to seek better alternatives.
Did any of these pain points look familiar to you? Then maybe you’re ready for a new 'business bank account' or a 'business account' from a payment services provider.
Now that you’re halfway through the door, here are 3 benefits that will convince you to completely take the plunge.
One of the most obvious benefits of making the switch is being able to separate your personal and business expenses. No matter how much you convince yourself that you’re perfectly fine handling both personal and business funds together, it is not sustainable in the long run.
You can avoid potential mishaps during the accounting process and keep track of all business expenses more efficiently, which will be especially useful during tax season.
Try putting yourself in the shoes of a potential investor. Are you more likely to invest in a startup that still uses its personal bank account for business transactions? Or would you invest in one that has taken the time and effort to use a professional option.
Regardless of which industry or sector you are in, credibility is your best currency. Having a clear separation of your personal and business transactions, allows you to project your professionalism to clients and shareholders.
Financing a small business isn’t an easy feat, especially if you’re relying mostly on out-of-pocket expenses. On top of that, acquiring a loan can be challenging when your finances are all mixed together.
With your transactions for business clearly separated from personal ones, banks and other payment service providers would become more willing to grant loans as they now have an overview of your cash flow and general financial standing.
Most small businesses looking to expand and scale their business need access to working capital. But with factors such as limited cash flow and poor credit history, most traditional banks turn small businesses away from obtaining loans.
Fortunately, there are payment service providers offering loans specifically catered towards the needs of entrepreneurs. On top of that, traditional banks are also revamping their current service offerings to include small businesses in the narrative. Look for a solution that comes with a flexible credit line and allows you to grow your business without giving up equity.
Sometimes, opening a business bank account in Singapore is associated with negative branch experiences. From long lines to inefficient customer services, making the trip just isn’t worth it at times. But now, the times have changed.
Most banks allow interested customers to apply directly online where they can skip the branch visits altogether. You can also consider opening a 'business account' with payment service providers that offer full digital services.
Modern entrepreneurs of today are go-getters who are always on the fly. While they still exist, physical branch visits and manual ATM transactions are no longer the default. In this digital age, most companies conduct their business activities online.
For tech-savvy founders, find a solution that is specifically made for online use, allowing them to do everything from making international transfers to approving pending transfers with just a click of the button.
When searching for your ideal solution, you should look beyond the basic features. Consider a solution that can also provide smart features and business tools to automate, integrate and delegate your work.
Look out for accounting software integrations, expense management features and automated invoice payments so you can save time and focus on growing your business.
Aspire is the all-in-one finance operating system for growing businesses that can provide you with a 'business account' as a payment solution provider. A smooth transition and a completely digitally onboarding process; that’s the Aspire guarantee.
To give you a glimpse of what to expect, account users can get access to virtual corporate cards for teams, expense management features, automated invoice payments, and software integrations.
And that’s just the tip of the iceberg.