One of the key decisions every startup owner must make is what type of account to open for his or her startup. If you are considering opening an account for your startup, you should consider opening a Startup current account. ‘
The benefits of using this type of account for your business can not be overly emphasized. In this article, you will discover what a startup current account is and why it is the best way to bank for Nigerian startups. Let’s find out what a current account is first.
What is a current account?
Current accounts are interest-free accounts that come highly recommended for small or medium-sized businesses or startups that need ongoing banking services.
An American banker discovered in 2014 that many legacy banks still use more than 40-year-old systems. Due to this, it has been challenging for these established institutions to change and provide digital advances for the modern day, especially to meet the needs of the growing and emerging startups across the globe.
This is why several neo-banks, or challenger banks, have emerged during the past ten years. These financial firms do business through a digital platform as they lack a physical branch. They aim to make it easy for startups to set up current accounts for their businesses or startups.
Innovations abound and outpace conventional infrastructure because they are created using quicker and lighter programming languages. These online banks offer everything from mobile debit cards to high-yield savings accounts, all through a single smartphone application, making it easy for startups to create current accounts.
Some of these banks also offer other complimentary services, such as providing loans, creating inventories for their customers, and providing services that make it easy to pay their staff, such as payroll features, etc.
Startup current account
Opening a startup current account is your first step toward organizational legality and more accessible and organized financial activities. This type of account helps startups succeed and maintain proper structure in their finance.
The company’s validity is weakened if corporate funds are used for personal purposes. Your company won’t even be recognized by the Internal Revenue Service (IRS), which will result in needless headaches regarding taxes. This is why it is important that you open a Startup current account.
Every startup should have a startup current account to pay their employees and receive finance. This type of account is also required to process all transactions made using the startup’s credit card.
Some of the features that most startup current account offers that makes it a perfect account for modern start-ups are:
- Customisation of accounts to suit startups’ needs,
- Unrestricted transactions,
- Unlimited cash withdrawal at home and non-home branches,
- Smooth and fast-paced banking anytime and anywhere.
Why are startup current accounts the best way to bank for Nigerian startups?
People often wonder why startup current accounts are highly recommended for Nigerian startups. Here are a few reasons:
- A current account separates your personal account from your company account.
- It assists startups in proving their business creditworthiness.
- An added advantage is that it allows startups to transfer large sums of money during their business.
- The money generated in a startup current account is not subject to any limits. You can also pay fees to deposit cash.
- Some startup current account also has an overdraft feature.
You can’t just choose any bank to open your startup current account and hope your business succeeds. You must examine the services to see whether they complement your company’s objectives. You must pick a bank with features supporting your company’s expansion.
This is where we come to play at Lenco. Lenco is a digital-only bank that issues easy-to-open and free-to-operate current bank accounts for startups and SMEs without any hassle.
Are you trying to find a straightforward method that will let you accept and send payments? Perhaps you’re looking for a full-service bank that can take care of all your needs for business financing, including providing you with business loans.
Then Lenco should be your go-to option. You can visit our website at https://lenco.co/ to create your startup current account today!