How To Open Up A Business Bank Account Online – Business and career Why open a business bank account? “Traditional” local banks in Singapore are just as, if not more, digitally advanced than online-only platforms.
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How To Open Up A Business Bank Account Online
As a new business owner, there may be downsides to running a successful start-up. The important thing is that you are now responsible for all aspects of the business rather than just being a good operator or managing part of the business.
Steps To Start Your Business
Getting a business account is usually one of the first things you do, as you use your account to collect revenue, pay employees and suppliers, and for legal and accounting purposes.
There are several business accounts offered by banks. While a good business account is essential, you don’t want to spend unnecessarily on it, especially since it will be a recurring expense for your business. All things being equal, try to keep all fees and charges as low as possible.
You may have a preconceived notion that a business account usually requires a large initial deposit. However, this is not always the case. For example, OCBC’s Business Growth Account only requires a minimum initial deposit of $1,000 to open. Plus, you don’t pay lower fees (or require a minimum balance). It charges a $10 monthly service fee (which is waived for the first two months). Additionally, you get the OCBC Multi-Currency Account for free. You can transact in up to 13 major currencies with no initial deposit and no fees involved. This is great if you need to make and receive payments from your suppliers or partners in a foreign currency.
OCBC Business Growth Account is also the only bank with free FAST and GIRO transactions that you can use. Another increasingly common feature that many businesses are looking for is international money transfer. Typically, when companies send money overseas, there can be high and non-transparent costs – which OCBC International Automated Clearing House (IACH) wants to make easier. With IACH there is certainty in i) fees (a flat fee of S$30 per transaction), ii) speed (2 to 3 business days) and iii) accurate payment value (the recipient receives the full amount). You can make foreign transfers in nine major currencies.
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While this summarizes the OCBC Business Growth Account, each business bank account offers slightly different fees and charges. To choose an account that best suits your needs, you need to carefully consider the nuances.
In addition to just zooming in on account fees and charges, here are 4 other things that will affect your bottom line.
With the rise of fintech, a corporate bank account is no longer just a place to hold your company’s funds and collect and pay. Operating against the backdrop of a local and global economy still affected by COVID-19, the topic of digital financial and banking instruments has become more relevant than ever.
Today, most banks are online and offer a variety of digital tools that go beyond just their internet banking or mobile banking. The three local banks have deployed a host of digital tools to provide greater convenience and better equip businesses to digitize and grow.
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For example, business bank account holders can keep a close eye on their finances through the OCBC Velocity platform. They can use a free business financial management toolkit to track their cash flow—such as periodic monthly payments, future cash receivables and payables, and more—and use the information to forecast their future cash position. This can reveal periods of potential financial strain and allow companies to act earlier to avoid such cash flow strain.
Another pain point for many companies is billing. Many companies spend countless hours invoicing customers and processing payments. This can involve messy documentation and is prone to human error. Not only will this affect your billing processes and efficiency, but it can also lead to cash flow management issues for your business.
By introducing e-invoicing, this can be made more flexible. InvoiceNow, a national e-invoicing network, helps businesses create invoices in a standard digital format, send them directly to InvoiceNow customers, and automatically process payment requests. Some corporate bank accounts, such as those with access to OCBC Velocity, can also help you integrate InvoiceNow for free.
Certain features can also be very bank specific. For example, OCBC OneCollect is a contactless digital commerce solution provided by OCBC. It allows customer-facing businesses to collect payments from their customers via PayNow or SGQR. This means you will receive a notification when a payment has been made at the point of sale and payments will be sent directly to your business account. Collection data is also conveniently broken down by collection point and, if you own more than one business, across multiple businesses. For businesses that want to use the service, there are no startup or subscription fees, and the only fee charged is a 0.25% transaction fee. Additionally, users can enjoy the first 3 months free on new registrations until December 31, 2021.
Reasons Why You Need A Separate Bank Account For Your Business
Opening a business bank account can also give you access to a debit card that you can use for business expenses. Starting and growing your business will likely incur a significant amount of business expenses that can be difficult to keep track of. With the OCBC Business Debit Card, which you can get after opening a business bank account, accounting becomes easier as your card transactions are debited directly from your business account and shown on one consolidated statement.
You also get other perks like 0.5% discount on foreign currency spending – the highest of the 3 local banks – and 0.2% discount on local currency spending with no minimum spend. For companies, this can be a cost-effective way to reduce operating costs.
Starting a new business can be daunting. You can spend a significant amount of time researching and talking to other business owners about licensing, hiring, accounting, etc. In certain cases, your bank may appoint a relationship manager who will advise you and put you in touch with the right specialists to guide your decisions.
When you open an account with OCBC, you get instant access to a dedicated team of specialists who help you get started easily and efficiently. You also get a free business starter kit; a guide to help you avoid common pitfalls, get your books in order, and get things done on the first try.
Do I Need A Business Bank Account?
Banks in Singapore are highly regulated, and for good reason. None of us would want to open and keep money in a bank that does not have a great reputation.
When opening a business bank account in Singapore, you’re usually looking at one of three local banks, including OCBC. This is because almost everyone in Singapore would already be familiar with local banks as we use them for our personal banking. Since you already understand the service standards and interface, it may be wise to open a business bank account with the same bank as well.
However, if you want to go beyond just local banks, there are currently 10 eligible full-fledged banks in Singapore that are licensed by the Monetary Authority of Singapore (MAS). You can also consider the network and global presence of the banks for the business you run.
For example, OCBC is deeply rooted in the Singapore market with its own unique features that customers can turn to. Beyond local shores, OCBC is also well established in ASEAN and China. This makes them very suitable for Singaporean companies who may want to expand into these regional markets.
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Every company has its own preferences for a suitable business bank account. Hence, you should review the features offered by the various business bank accounts offered in the market.
A brand new e-commerce business may require very different features compared to an established F&B hub. However, the OCBC Business Bank Account is packed with useful tools that business owners in various industries can use.
Nor is it always about costs and digital tools. Ideally, you want to work with a bank that you can grow with. This means you need to consider whether they have a footprint in the regions where you operate or expand.
Those who open the OCBC Business Growth Account can rest assured that you will be able to open your business account fully online and instantly (for locally incorporated businesses owned by up to two Singaporeans and PRs only), subject to bank approval.
Request Letter To Bank For Opening A Current Account (sample)
SMEs can avail of additional financial support of up to $3 million through the Temporary Bridging Loan Program when you apply online at OCBC. Terms apply.
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