I need to open a bank account for new business but haven't registered a cc yet. Would I be able to open an account and what's the best bank to use?
I need to open a bank account for new business but haven't registered a cc yet. Would I be able to open an account and what's the best bank to use?
The best bank is the one that meets your needs the best. Service varies and the one that is best today may not be the best tomorrow.
What are you looking for in a bank? Convenience, price, professionalism, business support? Approach your local bank and see what they have to offer. Then look at a few more and make your decision based on the criteria that you set. Look at their websites to see what is on offer. Do your homework before visiting the bank.
There are some of the banks that will assist you in registering new businesses. FNB has a very efficient service in this regard and I think Nedbank offers a similar service.
Good luck with your venture.
Excellence is not a skill; its an attitude...
Standard Bank is currently the most expensive. The banks won't open a business account without your company registration papers.
I am in the process of moving from operating as a cc to sole proprietor. Capitec has by far the lowest charges, but only offer savings accounts. This suits me as I do all my banking online. They don't charge you any fees for purchases on your debit card.
As an aside, Capitec's credit card facility for POS is really cheap too. No minimum turnover. You pay a small monthly fee and then up to 1.99% on debit card purchases and I think 3.75% on credit card purchases. I got even better rates than that.
Can you tell I am impressed by them? I hope they eventually get the full spectrum of business accounts, home loans etc.
Sometimes the only transport available is a leap of faith
Thats interesting, I never knew that. Thanks.Originally Posted by Blurock
If your company doesn't exist yet, they can't open an account for it. Registration must happen first.
As Blurock said you going to have to determine what services your require and that will determine to a large degree where you go.
With Capitec I am not sure how easy it is to deposit large sums of cash if you are in a cash based business where as with FNB as an example you have ADT machines with reduced deposit fees, etc...
My CC (which I am trying to close down) account is with FNB. I have to second that FNB is really good and supportive for business with reasonable fees. My rave for Capitec is in personal capacity and will only work for sole proprietors.
I realise that I am small fry compared to most of you, lol!
Sometimes the only transport available is a leap of faith
Look at the costs for the services / features that you'll be needing.
I must admit, that when I read the first post heading, my immediate thought went to the struggle of a new business. This almost invariably involves cash flow problems and probable overdrafts.
If this is a possibility ( and it always is ), then take it from an old hat in the game ( hope others agree ) that you will NOT get a "special" helping hand from A, B or C -- no matter what they tell you now, or what they advertise in all the "how can we help you" type adverts. What they will want, in every single case, is surity from you in your personal capacity. This is going to involve putting your personal assets up as garantee for the loan / overdraft - and at a hefty premium to the loan you're asking for. Make sure that you KNOW and FULLY understand the implications of signing and unlimited letter of surity BEFORE you open that bank account - it will be used against you at the first sign of trouble with the business. And do not just sign any "standard" documents when you open that account until you fully understand them. If you don't, thank the clerk and tell them you'll be back in a day or 2 after your lawyer has checked the paperwork. Don't feel pressured into signing away - you may very well regret it in the future.
2c
Watching the ships passing by.
I prefer Nedbank for my Small Business. Very happy with their overall service and fees. But like Daveob said, you are pretty much just a number to them, and that is true.
At the moment FNB seems to be the most cost efficient for business accounts. And it sounds like Capitec is the winner for personal accounts.
Quite simply, don't sign unlimited sureties.
If it's for asset finance, make sure it's for the finance on that asset only.
If it's for an overdraft, make sure it's on that account only, and there's a celing value to the surety.
Whatever you do, make sure anything that resembles an "or any other debt owed to the bank" type clause is removed before signing.
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