It is safe to say that the current economic climate in the country is ripe for the growth of business. This is not just an assumption it is a statement borne out by the scores of start-ups mushrooming all over the country on an annual basis. And it is not just experienced professionals in the metros who are embarking on a business journey. Even youngsters are developing ideas and apps for businesses, or starting their own ventures with a little seed capital.
The fact is, the time to start your own business in India is NOW. The economy is steadying itself after a major shake-up last year when demonetisation was announced in November 2016. The Government offers many measures for the growth of businesses in the country, particularly in the burgeoning MSME sector. At the same time, banking and finance companies have also aligned their key products and services to suit the changing needs of the business world. Where most banks would earlier only service mid- to large-sized companies, today the most reputed banks also provide finance for village-based businesses.
How your bank supports your business
The primary interaction a business has with its bank starts from the time the company opens a current account in its name. A current account is a bank account that is operated by the business for its daily needs. It is different from the usual savings accounts in quite a few ways, namely
1) It is not opened in the name of an individual, but a company. This holds true even if the company is a sole proprietorship.
2) It does not earn interest on the deposits in the account.
Does your business need a current account?
The answer to this question is always Yes. There are many current account benefits one must take into account, such as:
* It keeps the business finances separate from personal monies. This holds true for companies that are registered on a residential address, small firms run by private individuals, sole proprietorships, and companies run by freelancers. Ordinarily, one would keep all their money in their savings account, but this is not considered financially prudent as it does not allow the business owner to map the companys progress or track company expenses.
* It improves the businesss credit history. A business operating a current account ends up improving its credit score, especially if the account is maintained properly (minimum balance is maintained, cheques do not bounce, etc.)
* It gives the company a professional touch. Clients will not issue payments to a business that takes money in a savings account. A company, however small, must have a current account to its name it tells clients that the company is a serious enterprise and not a fly-by-night operation.
Which is the best current account in India?
The most reputed banks in India offer current accounts to a variety of businesses, while also extending credit to them so as to help them achieve their business objectives. But not all current accounts are created equal there are more current account benefits offered by some banks as compared to others.
In the present scenario, we find that the IDFC Bank current account is more advantageous for companies. This is because:
1 IDFC Bank offers a variety of current accounts. IDFC Bank offers many types of current accounts, namely the Dynamic Current Account, World Business Account, Truly One Account, Dynamic Plus Account and Accounts for Non-Profit Organisations. The Bank also offers good business fixed deposits.
2 They offer many wonderful services. IDFC Bank offers such excellent services as a good mobile banking app, doorstep collection of payments and other services, instant money transfers using NEFT/IMPS/RTGS and Internet banking.
3 Online account opening facility. The business can initiate the process of opening the current account by logging on to IDFC Banks web portal. After filling out the online form provided, the bank gets in touch with the company owner(s) to take the application further and understand the companys needs. Post this discussion, the Bank recommends the right kind of account for the business and explains all its features and charges.
4 Every business can open an account. From sole proprietors to exporters, from educational institutions to start-ups, and from trusts to MNCs, every kind of business can open a customised current account with IDFC Bank.
Digitisation helps businesses in many ways
In the era of Internet connectivity, it has become possible for businesses to operate from any location in the world and maximise their efficiency. Digitisation is especially useful for managing ones finances in real time. With banks like IDFC Bank encouraging a range of businesses, it is possible to entrust a variety of financial management tasks to the bank itself.
When the bank handles cash management services on behalf of the business, it takes away a lot of pressure on the company to look into its own commercials on a daily basis. While the company focuses on business development, the bank handles payments and receivables, cheque disbursal, invoicing, forex, etc. Besides, the company can track all transactions in real time, using just a mobile phone or even a laptop. If the business requires a certain product to be included in its portfolio, it can discuss the same with the bank and get it. And there is no need to visit the bank too all instructions are issued in real time and a dedicated banker can interact with the company daily.