Friday, September 14, 2018

How a Current Account Helps in Transacting Business in a Secure Manner

business finance
A business owner should be able to distinguish between his personal finance and business capital under all circumstances. You may open a business current account just to keep track of your business incomes and expenses separately from that of your personal finance.

Apart from improving your financial planning on the business front, a current account will help project your entire financial situation in details. Ascertaining a true and fair view of your business will help you to keep your personal finance segregated from that of your business finance.

Know how a current account helps a business owner:

• Helps in proving creditworthiness

Your creditworthiness may be checked by lenders prior to offering a credit-line. This process gets facilitated once you open a current account. The fact that you hold a current account can be proven very easily when you produce a bank letter stating the same. Creditworthiness can even be checked with the help of inter bank connections. You must continue to pay your bills on time even when you’re seeking a new personal loan. You may calculate the amount that you can afford to repay each month with the help of a personal loan EMI calculator. Your current account will even come to your rescue when you need to show a guarantee to a foreign counterpart, especially when you’re into import or export business. Maintaining your current account with a reputable banking concern will help in simplifying the entire process while proving your creditworthiness.

• Promotes a professional image

Maintaining professionalism is truly important while running a business. It helps in developing your business network, promoting your image, and expanding your business. You can prove your point by using a current account for your business dealings. All cheques that are received and issued by you while transacting business will mention your current account. The seriousness and responsibility with which you conduct business get symbolized by your current account.

• Simplifies banking transactions

Compared to a savings account of an individual, a few extra benefits are offered under a current account. Few effective value-added services are now offered by banks as the competition is becoming stiffer with each passing day. All current account holders are now eligible for these offers as they come at no additional charge.

Current accounts are considered as favorites by all banking concerns as these accounts don’t yield any interest for the account holder. However, most of the current account kits come with benefits like cell-phone alerts, online banking, and doorstep services.

Apart from this, a good number of free demand drafts and pay orders are offered to the account holders. He can even utilize NEFT/RTGs for availing the instant fund transfer facility. Although you don’t need to maintain a certain balance, few banks tend to support you with a zero balance account.

In order to ensure a personalized service for each of these current account holders, a bank provides them with benefits like that of multi-location funds transfer, multi-location withdrawals, monthly statements, free deposits, relationship managers, and free remittances. However, you might need to ensure a minimum balance although each of these services comes in handy with your savings bank account.

The primary objective of opening a current account is to transact business in a simplified manner. This, in turn, helps in running a business more smoothly and accurately.

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