The to-do list that one makes while setting up a startup seems never-ending. Those disturbing thoughts with the hint of stress and tension always prevail. In all this chaos, the task of choosing the best bank for your business account is no less than a nightmare. Here we are, to make this nightmare of yours a little easy.
When setting up a startup, the business bank account helps the owner to keep a separate record of business transactions. This helps in preventing the mixing of personal transactions and business transactions.
Several financial institutions in the UAE provide this service to their customers. These institutions range from local banks such as Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), and RAKBANK to international institutions such as Hong Kong and Shanghai Banking Corporation (HSBC), Standard Chartered, and Barclays.
Here are some of the things that you should remember while choosing a bank for your setup:
- The priority in this is to first know your requirements as well as the requirement of the business that you are planning to set up – Before you start searching for a good financial institution, it is required to know your own needs first. Gather all the required documents and keep them ready. Some of the essential documents that are asked by most of the financial institutions are:
- A photocopy of the company’s certificate of incorporation.
- A photocopy of the trade license.
- Photocopy of the share certificate.
- Passport photocopies of the partner of the company.
Keep all these essential documents ready in photocopy and original form. Keep the vision of your company clear and do not mix up the ideas.
- Compare all the small as well as the large banks – Once you are aware of your requirements, you should compare all the banks from small to large. National banks can give good interest and offer a wide range of products while on the other hand, small banks promote local business and offer better opportunities. Visit multiple financial institutions to know them more clearly. Before visiting any financial institutions, be prepared. Note down the list of questions that you want to ask and communicate more to have a clearer vision regarding the policies and complications.
- Be more vigilant in analyzing the fee structure – Closely analyze the fee structure regarding ATM usage, application for getting the monthly account statement, credit card processing, and fees for check usage. This all will help you in the long run so be careful while choosing a bank.
- Bank’s reputation can also be a matter of concern – This is a very important aspect while working in a business field. You will be in touch with many people and questions related to banks are very common. This is the case the reputed banks gain more limelight. Look if the bank you are going to choose has never been engaged in any fraud, etc. Consider the employee and customer engagement, the work culture, etc. This all will help you as you will process in your field of work.
- Consider the cash flow of the bank – Look into the type of bank schemes because consider a ‘zero’ balance account is much more useful in a business type than a regular account. During transactions and stock market issues, one can face low balance. In this case, a normal account can start to deduct the balance from the owner’s account if its type is ‘minimum balance’ or ‘regular account’. Choosing a zero balance account is hence beneficial.
- Taking advice over these matters has no harm – People who are in the same business field as yours can prove to be the best advisors. Take help, conclude problems, and find good solutions. This will help you grow your business as well.
- A final thought – After you have worked in all these fields individually, gather up things and try to look at this matter with a collective approach. Compare and consider things on a common platform and try coming to a specific solution. You can choose one main bank while keeping one or two as alternatives.
- Establish a prosperous relationship with the bank – After you have completed the formalities and document-related work, try working out more personally. Take advantage of the customer and staff support system and make full use out of it. Look for new schemes and add to keep updated with the financial developments. You never know which scheme can come in need at what time. Your bank can also help you in growing your business apart from providing financial help.
Now you know what to do while planning for a startup. Make the to-do list wisely and try not to forget the main aspects. Try to analyze everything before each step because even one step can lead you to the wrong path.
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