There are many small businesses that mix the management of income and private issuance with business.
Doing so will create confusion since it will be difficult to distinguish between personal assets and business assets. Therefore, it is very important to separate personal finance from business finance with having a business account.
A business bank account is different from a personal account since it has a relatively higher interest rate and the amount of money that can be transferred is also greater than a personal account. However, a business account has several requirements including a large initial deposit and a large minimum monthly deposit.
11 Things to Consider when Choosing a Business Account
1. Bank’s Reputation
The reputation of the bank matters. You don’t want to apply to a bank with a bad reputation and history. So the first thing you should consider when opening a business savings account in a bank is how about the bank’s reputation.
How much the capital they have? How about their profit each year? This is important because when the global economic recession occurs, the bank will remain strong. How the bank is developing in a few recent years? Are they have a good name on stocks exchange? Make sure you get the best business bank account to rely on.
2. Their Network
It is a good thing to have if your bank could be integrated with other banks inside and outside the country. You can easily join a business with other business owners and not worry about the remittance, etc.
So, the next is to seek out whether your bank has a wide spread of branches all over the country? How about its network overseas? Is it easy to do transactions across areas and countries? Anticipate this if your business might collaborate with overseas companies in the future.
3. Services Offered
Now, you already found the bank with a great reputation and extensive network. But how about the service they provide? That includes both in-branch, online, internet banking, ATM and other services.
At the branch, you can do activities such as: saving money, withdrawing in cash, making a checkbook (which is very useful for entrepreneurs), etc.
Pay attention to how the services are delivered. Do the employees give solutions to your problems? Do they implement service excellence? Also, do they provide the 24-hour call center service, so you can contact your bank anytime you need it?
Next, does the bank have branches abroad? Is it easy to make transactions through the bank abroad? This is important if your business doing a collaboration with other companies overseas or if you travel abroad. Choose the bank with an international business bank account.
4. In-person or Online services
Some banks require physical presence when customers open an account, but some don’t. Would you prefer a bank with this provision, or do you want a bank that gives you flexibility through online services? Finally, it depends on you! Which one is more convenient for you to do?
5. Online Banking
In a digital world, conducting bank transactions through an online platform is a necessity that cannot be ignored. With online banking, you can check your account activities whenever you need them. Checking balances, making transfers, making payments to printing account statements; you can do it while sipping your coffee at your favorite cafe.
So make sure your business account provides these facilities for your own convenience. Checking out their mobile application, internet banking, mobile banking, and other related apps that you can integrate into your daily gear.
6. The Costs
Well, some other people may ignore the amount of small administration cost that banks put on their savings. To determine which bank should you choose to have a business bank account, you should consider about it. Make a comparison to see which one is the best bank that offer minimal costs.
As you know, that some banks apply lower fees compared to other banks with the same facilities and services. Also pay attention to ATM card fees, credit card fees, a certain amount of withdrawal fees and other fees related to your account.
7. Limitation of Money Withdrawal
Some banks provide restrictions limit for drawing down money in one day, while other banks provide smaller limits. It’s okay to adjust it to your necessity. But the consideration that choosing a bank with bigger withdrawal limit in one day, is certainly more profitable, right?
8. Bonus Given
Not a secret: some banks give bonuses for their customers who open a business account with their bank. So, if you’re still confused about determining which bank will you choose to open your business savings, just choose the one who will give you more incentives.
9. Minimum Account Balance Fees
Perhaps not too crucial because your balance will never touch the minimum level, but you should also consider the fees that will apply if happen so.
10. Flexible Debit Cards
This feature is very useful once you give trust to employees to manage your business finance. With low supervision, all you need is a bank that apply flexible debit cards for your business account.
With this feature, you can limit debit card facility and amount of money withdraw in a day so that your business finance is kept in good maintained.
11. Interest rates
Bank interest is no longer the main investment instrument at this time. But as a comparison and consideration, it seems okay if you choose a business account with higher interest rates than others.
In the end, you will find that some banks have similar offers and services. What distinguishes them is the financial institution, amount the fund they manage, assets that they have, and the services they offer. If you have a small business, a local bank might be adequate to meet your business needs. But for medium and large scale business, you might need a bank with stronger assets and wider network.
Choosing the best Bank to start a business account is also one of the business strategies you have to apply. With this account, you can manage your assets, liabilities, cash flow, as well as monitoring your business’s financial health. With a good decision, hopefully, your business can run better and develop.
We envision a world where business owners have fast and simple access to the funding they need to grow. That’s why we’re on a mission to re-invent banking for SMEs across Southeast Asia.
Our current product provides SME and startup owners in Singapore with financial flexibility through a line of credit of up to S$150k. Which, can also be used to make business payments to enjoy 60 days free credit terms.
With no monthly fees or obligations to withdraw, you only pay interest on the amount you end up using. Opening an account is free and can be done online here.