As a business owner, it’s essential to have the right financial tools in place to help your business succeed. A current account can be one such important tool to give you and your organisation the financial flexibility to support growth. It is a type of bank account that allows all types of businesses to easily manage day-to-day transactions, such as regular deposits and unlimited withdrawals.
However, besides higher transactions and fluidity of operations, there are certain critical features of a current account that can contribute towards the growth of your business. Have a detailed look at each of these aspects.
- Separation of personal and business funds to track financial transactions
Generally, when you have all of your expenses and income listed on one statement, it can be difficult to track where your money is going and how it is being spent. By having a separate current account, you can easily distinguish between personal and professional expenses, allowing you to streamline your budgeting process and better understand where you should be investing or cutting back to maximise profitability.
- Helps establish legitimacy and build a professional image
By having a business current account, you can establish its credibility and enhance your professional image. Such legitimacy can open up doors for more opportunities, such as obtaining lines of credit from banks or other lenders. Having a separate account also helps demonstrate financial responsibility, which is essential when pitching potential investors or partners who may want assurance that they are making the right decision by trusting their funds with you.
- Overdraft facility
Another valuable benefit offered by many current accounts is an overdraft facility – which allows businesses to spend more than what they have in their accounts. This feature helps you stay afloat during times when cash flow is low or unexpected costs arise without having to worry about hefty fees or late payments on bills due to insufficient funds.
- Conduct bulk payment transactions and foreign transactions
A current account also makes it easy for businesses to conduct bulk payments at once such as paying salaries instead of having to make multiple payments one at a time, which can be time-consuming and tedious. Additionally, a current account helps facilitate international transactions with ease and expand your business internationally without having to worry about foreign exchange transactions.
- Get additional value-added features
Besides a higher number of withdrawals and transactions, additional benefits of current account for startups and businesses include free NEFT/RTGS/IMPS transactions, free demand drafts, higher pay order limits, etc. These value-added features can make a real difference, especially for businesses starting out and those looking to expand, offering them essential support in their growth phase.
Opening a business current account gives you easy access to the right set of banking tools, allowing for greater financial management and strategies for success. From keeping track of payments and records to making informed decisions based on clear data-driven insights, dedicating a current account to your business can significantly contribute to its growth.
And if you are wondering how to open a current account without hassle, the most convenient way is going digital. Simply visit your selected bank website, fill out the form, upload the documents required, and post approval, you can have instant access to your current account.