Current accounts are best suited for banking solutions for businesses. They are zero balance accounts, with no charges on inward remittances. Further, they are capable of handling huge volumes of payments regularly, without any cap on withdrawals. One can also avail the host of benefits of a current account, like 24×7 mobile and internet banking.
If you have recently launched a business or are thinking of launching one, here’s why you must consider opening a current account.
1. Online Banking
In the wake of the coronavirus pandemic, online banking has become the most efficient way to conduct business transactions. Since everything can be done online, there is no need to visit a physical branch at all. Instead, you can receive and send funds from the comfort of your home or office through NEFT and RTGS. You can also use online services to pay and receive from your vendors and clients.
2. Professional Approach
A current account in the name of your business reflects ultimate professionalism. It helps in building trust and confidence in your customers. It is a positive step towards improving your image in the industry and showcasing your commitment to the business. Clients will have a better impression transacting with your business account, rather than a personal one. In fact, they will know that you are here to stay for the long term.
3. Overdraft Facility
Business current accounts offer overdraft facilities too, which can be useful when cash flow is uncertain. This way, you can ensure vendor and salary payments, even if your receivables are delayed. This is a temporary solution to cover for any fund deficits and keep the organisation running.
4. Business Ease
To help you flourish, banks offer countless value-added services on business current accounts. At no extra cost, you can benefit from free pay orders and demand drafts, unlimited deposits, doorstep banking, mobile alert services and internet banking. In fact, you can have a personal manager who will help you work with the account. With unlimited current account benefits, one can smoothly conduct day-to-day business, without any hiccups.
5. Protecting Personal Finance
Having a separate account for your business can segregate your personal and professional finances. This can help you track expenses and income separately and focus solely on the real picture of your business, including profit, loss and overall growth. It is a great way to organise your business transactions without mixing them with your personal expenses. Further, a dedicated current account can limit the damage caused by fraudulent activities, since it won’t impact your personal savings.
6. Multi-City Banking
Online banking services are particularly proving useful during difficult times, such as through the COVID-19 crisis. You can operate your business account effortlessly, from anywhere. In case you have offices or sales outlets in other cities, you can carry out seamless transactions at your nearest bank branch.
Simple documents are required for a current account, which can also be opened by any societies, trusts and individuals. It is a safe and efficient way to keep all your business finances in place.