Imran Qureshi
Having financing is essential for any business, both for the start and for it to be able to stay in operation; since the lack of financing can cause a business to sink into debt. However, there are different ways to finance a business that depend on the solvency of the owners and the business plan they have drawn up.
In this way, some of the most common ways to finance a business is through investments, savings or applying for a bank loan. The initial capital of a company is used to launch it. When you are working you will need resources to pay salaries, services, insurance and other necessary expenses for the company.
The money to pay for all those expenses, for a new company that does not yet have significant profits, comes from business financing. Small businesses can get loans from traditional banks or even present their business plan to potential investors. This is when business banking becomes relevant.
What is business banking?
Financial entities and traditional banks offer a series of financial services which they call Business Banking. This financial option is aimed exclusively at legal entities or companies, and includes a wide range of operations and services. Among them, the financing of projects, opening and maintenance of accounts or transfer operations stand out.
One of the main services of business banking focuses on the maintenance of accounts or funds. This service tends to be taken for granted and some entities do not even offer it, but it is extremely important for the operations of a business. In this way, business banking is guided according to the activity of a bank account.
Next, the business banking service offers different types of operations related to money transfers and movements. Here the bank transfer, the transfer of funds and the bank receipt are highlighted.
Corporate banking financing services are divided into two classes: long-term and current. Long-term financial services are commonly loans that are invested in the purchase of materials, appliances, among others. Current financing facilities are used to pay for day-to-day business operations.
The importance of having a business bank account
Every business should have a bank account in its name. This is important to ensure the independent and legal operation of the company. Having an account in the name of the company also serves to ensure the responsibility of the company that makes it up.
To open a business bank account, an authorized person must carry out the management following the requirements demanded by the institution. Some of the requirements include presenting the seal of the company where data such as its legal name, the date of foundation and the company status that describes it appear.
Once the company account is created, it is important to decide who will be able to use it. Those who are authorized to operate and manage the business account need current photo IDs. Persons authorized to operate this account need, along with their photographic identification, a company employee number.
Why should they open a business bank account?
A company manages large amounts of money and having a bank account helps to better manage expenses. For this, it is essential to analyze what type of bank account is best suited to the needs of the company. Regarding this, some banks offer business accounts specially designed for these cases.
Business accounts are current accounts that allow all kinds of financial operations to be carried out. The peculiarity of this type of bank accounts is that they offer a series of complementary advantages for companies. The beneficiaries of the business accounts can be self-employed workers, SMEs or property communities.
In the case of larger companies, business accounts offer the possibility of creating different user profiles. This means that there are different users of the same bank account who have limited management of the business account. This option is very useful so that the different departments or areas of the company have access to the same account, although not completely.
Advantages of having a business bank account
When a company has a bank account, it can access all the financial services offered by the bank to which it belongs. However, some banks offer exclusive benefits to business customers. Among these advantages, services such as loans, financing lines or credit policies stand out.
In some cases, business accounts offer special benefits designed for different types of customers. These benefits include the issuance of free cards, the waiver of administrative and maintenance fees and they even offer complete service packages for a modest annual fee.
Requirements to open a business bank account
Banks request a series of documents in order to manage the registration of a business account. First of all, an official identification must be presented with current photographs of the legal representatives, proof of addresses (of the company and the representatives) are also necessary. They can also request the articles of incorporation of the company, the telephone number of the representative, among others.
Business banking is necessary when it comes to good management of business resources. Having a business bank account allows you to properly manage the company’s capital and access different benefits and financial services.
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