If you have recently started a business of your own, chances are that you are frequently being told that you need to get a current account, which begs the question: how can a current account help your business? To understand that, it is important, first of all, to understand what exactly is a current account and how is it different from your regular, personal bank account. 

What is a current account?

A current account is a bank account generally used by businesses for their day-to-day transactions because it is more suitable for their unique needs than a savings account. Current accounts are also used for a variety of other purposes such as salary payments and bulk payouts to vendors. 

Opening a current account provides businesses with a certain level of legitimacy along with better organization of business finances and a higher chance of successfully raising capital in the future. 

Advantages of a current account 

No balance? A current account is cool with it

At times, you may find yourself waiting for a bunch of payments due at the end of a month, even as you need to pay your vendors right on time. Expectedly enough, that leaves you in a lurch, and a regular bank account wouldn’t be much of a help. On the other hand, a current account can come to your rescue with its overdraft facility. 

An overdraft, essentially, is an amount you can withdraw from your current account even when you have no balance in it. Think of it as a small line of credit extended to your business by the bank to help you meet your working capital needs. Depending upon your transaction history, the bank you are associated with, and your rapport with that particular bank, you will be charged interest (or, in some cases, no interest at all!) on the overdraft. 

At the end of the day, with its overdraft facility, a business current account helps ensure that you always stay afloat.

Unlimited cheques to match your unlimited growth 

You must already be used to getting a chequebook with your personal/savings account that you use to write cheques for various purchases. When you run out of cheques, you need to revisit the bank to get another chequebook, and some banks may charge you if you get chequebooks quite frequently. 

In the case of a current account, you will face no such problems. You get plenty of cheques with current accounts from any bank, and every month (in the case of most banks), you can get a chequebook issued for your account so that you can keep making payments without any worries. 

The frequency and size of the transaction are never an issue

A common sign of a healthy business is a high transaction frequency (though, of course, there are many exceptions to that general rule) and, as a business owner, a fixed limit on the number of deposits and withdrawals you can make from your bank account can be quite irksome. 

Savings accounts generally have such a limit and therefore are unsuitable for most businesses. In addition, they also have a limit on the size of an individual as well as per-day transactions, which means that a company will not be able to make or receive amounts above a specific arbitrary limit that does not make any exceptions. 

Current accounts are a lifesaver for businesses primarily because of the absence of such limits. With a current account, a firm can make any number of transactions and pay or receive any amount of money—something that proves to be of great value as a business scales up and finds itself handling increasingly large sums of money. 

Legitimacy translates into easy credit

As discussed earlier, having a current account imparts legitimacy to a business, which is a game changer when raising funds to accelerate business growth.  

By analysing the statements of your current account from the past, a financial institution can evaluate your business’s health and future potential based on parameters like transaction history, debt repayment, etc. 

Helping businesses easily score credit is an important yet often overlooked benefit of getting a current account.

Advantages of getting a current account with Open

Apart from these major benefits of getting a current account for business, neobanks such as Open sweeten the pot further with added perks. For example, with Open’s Current Account, you can:

Initiate your application process in seconds

Your time is precious and best spent focussing on business growth, not commuting to banks, waiting in queues, and going through cumbersome processes. 

Get started immediately 

Waiting is boring, and we get it. So you can immediately add beneficiaries to your current account and start collecting and sending payments right off the bat with your Open account. 

Say goodbye to tedious accounting chores

All your transactions are auto-reconciled at your OPEN dashboard, saving you hours in manual reconciliation. You also get a complete overview of your Payables & Receivables.

Always stay on top of your business finances 

OPEN provides your business with the financial clarity it needs through insightful reports like Cashflow, Profit-Loss, and many others. The cherry on top? You can connect all your bank accounts to the same dashboard and get a bird’s eye view of your cashflow. 

It does not stop there. When you get a current account with Open, you also get automatic access to a bunch of cool features that can help you manage your business banking and finances so much better. Among many other features, you get

    • Unified tax solution for direct and quick GST and TDS tax payments, along with challan history and management, and 
    • Payroll solution with salary disbursement, leave management, & 100% statuary compliance. 

    To achieve your dreams of phenomenal growth with our current account, you can also apply for term loans up to 30L at attractive interest rates and minimal paperwork. So, get a current account pronto and ensure that you get the best in business out there!