Reasons Why Every Start Up Should Get A Current Account

A current account has a specific set of functions that are most useful to businessmen and business institutes. Although it is not used for the purpose of investment or savings, it provides several other benefits. 

These factors play an important part for any business venture, especially for start ups. It is very common for new businesses to run into losses in the initial period. 

However, with the proper planning and strategy this can be easily overcome.

A current account will go a long way to aiding any financial problems which include the following:

Get An Overdraft For Fiscal Emergencies

In the first few years, there is a high possibility that start up ventures will not get much business. Additionally, if they have taken prior financial aid in the form of loans or other borrowed funds, it will be a priority for them to repay these funds as soon as possible. 

A current account goes a long way in aiding these new ventures. As this account allows multiple withdrawals with no limits, there is a high possibility that the funds will be depleted. 

If an additional transfer is made during this event, the feature of the over draft facility comes in. By this feature, you can transfer or withdraw additional funds from your account that has been borrowed from the bank. 

However, you will need to pay back this overdraft in full or with fixed installments.

Freebies Save Funds

Most of the banking institutes provide additional free benefits. For example,free demand drafts, free NEFT collection and payments, etc. 

You can use the free demand draft facility for an unlimited value. The payable at par cheque book facility allows you to pay the amount required, without any additional service charges. 

In addition to these facilities, there is also internet banking and mobile banking that will help in carrying out important business transactions. 

These facilities provide a quick and speedy transaction between the start up ventures and their respective clients. Thus, these freebies provide an ideal way to save funds in the long term.

Additional Services to Manage Funds Better

With a current account, the account holder can deposit or withdraw funds from the home branch with ease. In addition to this, the account holder can perform the same functions at any other branches of the bank with a small additional charge.

Thus, if you have a client, business partner or an entire new branch in another city, you can handle the necessary transactions without having to be physically present.