The ongoing pandemic didn’t stop the world completely. Many Singaporean businesses have survived the hardest pandemic months with many now well-adapted and have even capitalized on the situation. As a business owner, you’re likely thinking about updating many aspects of your business, one being the separation of your personal from a business account or perhaps even looking to transfer to another bank for better sme rate and security.
But how do you know when it’s the right moment to take action? If your business has grown into a decent size, then it may be the right time to consider one. Let’s quickly discuss the signs that you should consider a business account for your sme Singapore business, regardless of your industry and offer.
Your business gets too many transactions for a personal account
Start-up businesses usually can make do with transactions being run through a personal account. However, growing businesses need to have an account focused specifically on the business. You reading this article means that your sme business grew enough to warrant a thought for its business account.
A good sign would be when it reaches a point where business transactions far outweigh your personal transactions. Separate business accounts make it easier to manage your business from collecting account receipts to writing checks for expenses.
You want to give your business a serious, professional image
Image matters in a business. Your image can suffer if you’re seen as unprofessional and your personal account checks won’t help one bit. You need to convey professionalism, confidence, and strength to your customers.
Having a dedicated sme Singapore account gives you an instant boost in authority saying you mean business. Your business name appears on checks and payment methods.
You’re wary of your personal identity being shown in public
Businesses ran using personal business accounts are not exactly secure, especially since it’s your name being shown for every transaction. The potential for fraudulent activity and theft rises as your business grows.
You’re looking to establish a business banking relationship
Growing businesses need a working relationship with banks, which becomes even more important as the business grows. For instance, you’ll also require a dedicated account to handle income payments, sales, or payroll taxes. You can also start establishing a strong relationship for credit purposes. This includes applying for financing to buy equipment or expand the business. You will most certainly need a business credit card, particularly for employees of partners for whom you need to provide a card. Having a relationship with a sme bank will make all of these easier.
You’re looking to begin accepting credit card payments
Perhaps this is the single most important reason you’re looking to go to a bank to set up a business account. Because the entire world uses credit cards for trades, you’ll need to start accepting them to expand your business.
It’s not possible to accept credit cards via a personal bank account since this is only possible using a commercial account – these cards are created specifically to accept credit card payments.
As you may have noticed, opening a business account for your sme business is not a question of want, but rather a must. Owning one just makes sense for the above reasons and more. When you’re ready, simply go to a bank that specializes in sme Singapore business accounts and either find more information or proceed with an application. Best of luck!