6 Benefits of Current Account for Small Business
Every business, big or small, requires a Current Account to manage its day-to-day transactions. For start-up businesses, it is important to understand the value of managing a Current Account in the early stages.
Here are six benefits of Current Account for start-ups:
- Conduct your day-to-day transactions with ease
As mentioned before, Current Accounts work best for traders, entrepreneurs and businessmen who need to access their account on a daily basis to manage their business transactions. Withdrawal limits vary depending upon the type of Current Account you opt for.
- Make higher transactions without a worry
Current Accounts have a higher transaction limits compared to other accounts. This allows you to conduct a larger volume of transactions. And when you’re dealing with business transactions, such flexibility can be very helpful in making sure a deal goes through.
- Keep track and protect your transactions
Since you will have to make large transactions for your business, it is important that the process is carried out safely and under constant monitoring. Banks will provide you with that safety and security for any digital transaction you make out of a Current Account.
- Conduct Bulk Payment transactions with Collection Services
You can make bulk payments for your start-up through a Current Account. Further, some banks offer electronic collection services where you can make your payments digitally. Another added aspect to this collection service is that the bank can help you in collecting payments from others who have to pay you.
- Conduct foreign transactions
Rather than having a separate account for foreign exchange, some banks offer Forex facilities with their Current Accounts tailor-made for start-ups, such as HDFC Bank SmartUp. You can acquire the services of an expert to help guide you through the legal regulations in matters of foreign trade and investment.
- Boost your credit rating
Your start-up may be unable to get a loan in the early stages, but Current Account plans like the HDFC Bank SmartUp actually provide you with a Credit Card against a Fixed Deposit. This can help boost your credit score for future loan applications. Further, Current Accounts have an overdraft facility which allows you withdraw beyond your account’s balance. The overdrawn amount is simply taken out of the next transaction you make into the account.
HDFC Bank SmartUp is a current account for start-ups, specifically designed to provide new businesses with the right environment to grow and develop. The account caters to all the banking needs and necessities of your start-up business. You can read more how SmartUp will benefit your business here.
Looking to open a Current Account for your business? Click here to get started!
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.