Benefits of a corporate account
A corporate account or a company account is a bank account opened purposely for an organization. The account is used to facilitate business transactions, receive income, and store funds.
Here are some of the benefits of opening a corporate account in online banking:
Separate finances keep books organized
One of the biggest benefits of having a corporate account is that it allows you to separate your business finances from your finances. This brings order and clarity to your accounts. With business and personal transactions separated, it is easy to prepare taxes and see exactly how your company is performing financially.
Build business credit over time
Having a corporate account allows you to establish a business credit history over time. As you responsibly manage payments and balances with your corporate account, you demonstrate to lenders that your business is financially responsible and stable. This paves the way to qualify for business loans and lines of credit down the road. Establishing good credit opens up opportunities for your business to grow.
Appear more professional to clients and vendors
Presenting a professional image is important when doing business. Using a corporate bank account displays that level of professionalism when transacting with clients and paying vendors. A dedicated corporate account shows that you are serious about operating your business successfully.
Gain access to useful business banking tools
Many banks offer useful account management tools, reporting features, and other services tailored specifically for business clients with corporate accounts. Take advantage of business budgeting templates, spending analytics, wire transfers, payroll services, and more – all under one convenient business banking solution.
Protect personal assets from business liability
Corporate banking establishes the legal separation between your business and personal finances. If a creditor sues your company for an unpaid debt, only the corporate account can be pursued for repayment – not your bank accounts or assets. This protects your personal finances and credit scores from any risks associated with operating your business.
Corporate banking brings many advantages to simplify the administration of business finances. The benefits of building credit history, gaining useful tools, and clarifying liability make opening a corporate account highly worthwhile. Take steps today to start reaping these rewards for your company.
How to open a corporate bank account?
Opening a corporate account online with a digital banking platform is a straightforward process and can be done entirely from your computer or mobile device. Here are the simple steps to get started:
Register your business information
Go to the bank’s website and fill out a new account application. Provide your business name, Tax ID number, physical address, and other basic identification details.
Upload business registration documents
Submit documents like articles of incorporation, business licenses or permits, and others to verify your business is properly registered in your country.
Provide identification for account signatories
Upload photo IDs for all individuals authorized to sign on the corporate account, such as the business owner(s) and officers.
Designate account signatories
Input the names and roles of people who will be signatories with access and permission to manage account transactions.
Fund the opening deposit
Transfer the minimum opening deposit amount required from your account. This deposit secures the account.
Confirmation and onboarding process
Expect a short review period before final approval. Then log in to your new online corporate account and you are ready to start managing business finances digitally!
With a few clicks, you will be up and running with an online corporate account tailored for business banking needs. Digital onboarding makes the process fast, convenient and fully accessible from anywhere.
Can I open a corporate account for any type of business?
Whether your business is an LLC, sole proprietorship, partnership or corporation, many digital banking platforms allow you to open a corporate account suitable for most business structures and operations. Here are some notes on account types for different businesses:
Sole proprietorships: A standard business checking account works well and offers liability protection as long as finances are separated from personal accounts.
Partnerships: Partnership business accounts function much like sole proprietor accounts but allow for multiple owners. All partners typically need to be account signatories.
LLC: Limited liability companies can open corporate accounts which provide legal protection of personal finances from business debts and liabilities.
Corporations: Incorporated businesses must open corporate accounts to legally separate the corporation as a distinct legal entity from shareholders.
Non-profits: Not-for-profit corporations and charities are equally capable of having corporate accounts while separately tracking restricted donations or grant funds.
Unless your industry has specific capital or account holder requirements, most forms of companies engaged in lawful commerce are eligible for affordable corporate accounts.
P.S. For foreigners looking to open corporate accounts, Afrilink Consultants facilitates the process remotely hence no need of travelling thus cutting significantly on the cost. Consult us for details applicable to your business structure at +254707280366 or send us an email at clientservice@afrilinkconsultants.com.
