Opening a business bank account is one of the essentials for start-up success. It allows companies to efficiently keep track of their business assets and expenses, and take control of their cash flows. Hence, opening a business account as soon as the company has business funding is undoubtedly a key to business success.
Depending on the types of business you have, you may need banking services that differ from other companies. Here are some of the guidelines when choosing the most appropriate business account for your start-up in Singapore.
How to Choose a Suitable Business Account for your Start-up
While the process for opening a business, account is quite easy and painless, business owners need to give serious consideration to the bank’s reputation and services. The same goes for the type of business account to open, which should fit the company’s budget and needs.
Factors to Consider when Choosing a Bank and Business Account
Low vs High Volume Banking Transactions– Though several types of business accounts are available in the country, one can distinguish them as either of two major groups, namely:
- Account for business with low-volume banking transactions
- Account for business with high-volume banking transactions
Initial Capital DepositMost banks in the market will require business owners to make an initial deposit when opening their business account. The price range of the deposits will differ from bank to bank. Companies that have a low starting budget should opt for a business account with a lower initial deposit. They can always upgrade later as their business and funds get more prominent over the years.
Options to Waive Account Minimum Balance During the Initial Months The early stage of establishing a business can be financially intensive for most start-ups. Companies with e-commerce type of business, for instance, may need to invest a considerable amount of their business’ capital into paying their products in advance, before even selling them to the customers. Additional money may also be needed to get a working space, purchasing necessary equipment, and hiring employees. Hence, business accounts that allow entrepreneurs to waive off their minimum balance requirements during the starting months would be a wise choice for start-ups. This service will minimise the maintaining cost of their business account during the initial months and allow them to focus their capital on other essential areas.
Minimum Monthly Balance Just like the typical personal banking account, most banking accounts will require business owners to maintain a minimum monthly balance to keep it going. If the account owners failed to keep the necessary monthly balance, a monthly service charge might apply. New entrepreneurs that are just starting their business would be best to stay away from unnecessary charges. Hence, picking a banking service that offers a low minimum average monthly balance that can be maintained would be an excellent choice for start-ups.
Type of Services the Bank OffersAside from minimising the spending on business’ capital, start-ups should consider the types of services that each bank has to offer. The variety of services that are usually provided by banks in the country include:
- Internet banking for business
- Mobile banking for business
- Business debit card
Hiring an Accounting Service Provider for your Business
Setting up a business account and managing the companies’ assets may be overwhelming for start-ups. Seeking professional advice from a trusted accounting service provider in Singapore would help the company to set off on the right path. Corporate Services Singapore is a credible accounting service provider that delivers all-inclusive and efficient financial solutions for businesses.