These top advantages of current account are helpful for businesses with frequent and huge number of daily transactions.
In most cases, a current account serves to be the first choice of business entities wanting to carry out their transactions in seamless, quick, and transparent ways. While a zero interest current account continues to remain associated with organizations making many monetary transactions across the day, it is also very helpful for other entities such as freelancers, sole proprietors, and customers using their personal savings accounts for aiding business transactions.
Here are some top advantages of opening a current account:
Segregation of business and personal finance: Unlike a company that is a separate legal entity, a sole proprietor firm, or freelancing agency, is not different from its business owner. By opting for a separate current account for recording income and expenses of such setups, account holders can keep their personal finance separate from those pertaining to their business. Along with enabling better handling and planning of finance on the personal front, the act would showcase the exact picture about all business operations, and at any given point of time.
More professional business approach: Maintaining professionalism enhances the image and growth of business operations in all relevant circles. The opening of a current account is another positive step in the same direction. From issuing and receiving cheques in the name of the company, to signifying the seriousness of business transactions, a current account does it all.
Enhanced credit worthiness: Lenders and creditors may want to check the credit worthiness of a business prior to advancing any loan or other benefits. This process is facilitated when interbank connections reveal that a current account is in place; or the concerned bank issues a letter stating that a current account is being held by the business in question. This is especially beneficial in case of export/import businesses, wherein, a guarantee/letter of credit may be required by foreign counter parties.
Overdraft facility: Current accounts usually permit overdrawing of balance on a temporary basis for plugging any shortfall in funds. Similar to a short term borrowing, which may or may not attract any interest, this facility of overdraft is not offered by savings accounts.
Ease of transactions: With banks in India offering many value added services for being ahead in the race (often at no extra cost!) current account holders are now privy to many convenient and user friendly banking transactions. These include door step banking, mobile alert services, 24 hours phone banking, internet banking, and so forth. Additionally, current accounts also offer the facilities of demand drafts, free pay orders, and secure fund transfers via NEFT/RTGS, etc. In the case of zero balance accounts, it is not essential to maintain any minimum balance.
With deposits /withdrawals from any location, free inward remittances, multi location transfers, periodical statements, personal relationship managers, and plentiful other benefits to boast of, current accounts enable quick and convenient business transactions at all times!
Go for the many advantages of opening a current account – you will be glad you did.