Why Is It Important to Have a Current Account for Your New Business?

Why Is It Important to Have a Current Account for Your New Business?

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A Current Account is a zero-balance bank account that allows the account holder to carry out large number of transactions on a daily basis with ease. A Current Account is a must-have for business owners as it can help them manage their funds efficiently and keep a track of their transactions in a smooth and hassle-free way. With reputed banks, it’s possible to open a Current Account instantly without much paperwork. In this article, we have outlined some of the features of a Current Account and its importance for new businesses.

Separate business transactions

To run your business efficiently, you must segregate your business finances from personal expenses. Opening a Current Account will help you manage business expenditures and keep a track of the cash-flow easily. This will give you a better idea about the status of your business, and you can take timely measures to avoid losses or optimise gains.

Professionalism in business

A Current Account in the name of your business will not only reflect professionalism but also signify your seriousness towards running your business. In case you wish to avail a business loan, having a Current Account with a reputed bank will help prove your creditworthiness to the lender. This, in turn, can ease the overall process of availing a business loan.

Ease in banking transactions

Delayed transactions can hamper your business activities. By opening a Current Account, you can carry out unlimited number of transactions instantly and effortlessly. Additionally, phone banking, door-step banking, internet, and mobile banking are some of the major Current Account benefits. The transactions made through a Current Account are completely safe and secure.

Overdraft facility

In case your business is running short of funds, and you require instant money to meet immediate business requirements, you can rely upon the overdraft facility that banks offer on Current Accounts. The overdraft facility is like short-term borrowing on which the bank may or may not charge interest.

Additional benefits

You can also enjoy additional benefits such as free Demand Drafts/ Pay Orders, NEFT and RTGS transactions, free inward remittances, unlimited withdrawals and deposits, multi-location transfer, etc with your Current account.

To sum it up, a Current Account makes banking transactions easy, which is crucial for running a business smoothly. Here’s a step-by-step guide on how to open a Current Account for your new business.

How to open a Current Account?

Step 1: Visit the bank’s website and check your eligibility criteria for opening a Current Account.

Step 2: Download the account opening form available on the bank’s website.

Step 3: Fill up the form with all the necessary details. Make sure that the details entered are accurate.

Step 4: Gather all the required documents. Some of the basic documents required are PAN Card, proof of existence of the business, address proof of the business, KYC of the proprietor, and identity and address proof of all the partners.

Step 5: Submit the form along with the necessary documents. The bank will get in touch with you once your Current Account has been opened.

So, if you are looking forward to starting your own venture, do not forget to open a Current Account to manage your business transactions and keep a record of the same.

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