During the initial stage of running a business, entrepreneurs often facilitate transactions using their personal bank account to ensure minimal cost. While a business bank account may not seem that different from a personal bank account at first sight, the differences become more apparent once your business grows. Here is why a dedicated bank account is key to unlock the full potential of your business for future growth.

3 reasons why you need a business account

1. Separate personal and business finances

   As your business expand and transactions multiply, managing your finances will become more complicated. Having a dedicated business account allows for a clear separation of personal and business transactions, improving all processes that involve accepting and making payments. This leads to more accurate bookkeeping, which saves time and accounting costs especially during tax season. Having a separate account also enables you to link with automated business software, further streamlining your financial processes.

2. Sense of security for customers

   Opening a business bank account is an essential step to officiate your business. Having a business bank account not only conveys professionalism, but also projects commitment and seriousness in running a business. It establishes credibility and trust in financial exchanges for products or services when dealing with customers and vendors. As your business name appear on payment touchpoints, customer confidence increases knowing that your business is legitimate.

3. Growth potential for your business

   A business bank account not only serves as a transaction log but also provides tools to help manage your finances better. With features such as internet banking, cash flow management, and invoicing, you can manage your day-today transactions efficiently and make real-time data driven decisions. Additionally, a business account facilitates card payments, providing customer convenience and increasing successful conversions. As business capital is one of the biggest challenges for small businesses, using a business account can help build business credit and provide access to financing facilities.

Things to consider when choosing a business account

When selecting the right business account for your start-up, consider finding one that offers a suitable combination of benefits, cost-effectiveness, and features that align with your business needs.

4 key factors to consider when choosing the right business account:

1. Nature of the bank

   While general account features and interest rates do not vary significantly between banks, it is crucial to understand the banking services tailored to your business requirements. Look for a bank that is experienced and well-equipped to understand the needs of start-ups, and offers specialised products designed for them. Building a strong relationship with a bank that understands your business can prove invaluable, facilitating future access to business loans and credit facilities.

2. Deposit considerations

   Start-ups often prioritise the minimum deposit balance required to prevent their capital from being tied up. The OCBC eBiz Account, for instance, caters to start-ups with a low initial deposit requirement of just RM500. Considering the maximum cash deposit limits and total balance limit of your business account is also essential.

3. Digital banking solutions

   As the business world continues its digital transformation, the digital needs of start-ups are on the rise. OCBC Bank is the first to offer a complete digital application process with its business account, allowing customers to skip the queue at branches and to apply from the comfort of their homes. Business owners can register for an OCBC business account in just a few minutes and verify their identity through the eKYC verification portal. Ensure the bank you choose provides reliable internet banking services and evaluate their functionality and system stability.

   The OCBC business account offers complimentary business internet banking services and free business mobile banking app, allowing you to manage your business finances anytime, anywhere.

4. Business management features

   Beyond day-to-day transactions, consider the additional features and tools provided by your business account to support and grow your business. The OCBC business account offers several features designed to enhance competitiveness. The OCBC Merchant Terminal enables multiple contactless store payment methods, improving the customer experience.

   Another useful feature is OCBC OneCollect, a QR code-based payment collection service that has gained popularity due to the COVID-19 pandemic. For businesses engaged in international transactions, FX Online allows you to view and book live exchange rates with competitive pricing. Additionally, the business account provides a Business Debit Card for convenient cashless transactions with vendors worldwide.

   Overall, the OCBC business account is a fitting choice for start-ups, with a simple digital application process, low initial deposit requirements and a range of digital banking solutions and business management features, it is ideal for those looking for convenience, flexibility and support to fuel their growth.

Owning a successful business is not only financially rewarding but also a journey of self-discovery. New business owners often underestimate the challenges they may face, both from internal operations and the external environment. However, entrepreneurs with a long-term view prioritise the right mindset over their bottom line. This mindset provides them with the strength and perspective to remain resilient and overcome any hurdles that come their way.

As you embark on your entrepreneurial journey, opening a business account with the right financial institution, such as OCBC Bank (Malaysia) Berhad, is a crucial step. By understanding your business needs, considering the available options, preparing the necessary documentation, and making informed decisions, you can set a solid foundation for your startup’s financial success.

Ready to Open Your First Business Account?

Embrace the opportunities that lie ahead, stay determined and remember that successful businesses are not solely defined by their beginnings but by the passion, perseverance, and vision of the entrepreneurs behind them. Start your entrepreneurial journey on the right foot with a business account that aligns with your needs and sets the stage for future success.

Sign up for an all-in-one SME business bank account today.