Why should you have a business bank account for your small business?
Well, to start with, you will earn and work better, as well as save more. You will also have the benefits of having an institution that cares and works as fast as you do on call, and newer digital solutions and products to streamline your work.
Entrepreneurs are the lifeblood of South Africa’s economy and with enough support, they will be central to reaching our full potential. Small and medium enterprises represent 98% of businesses and employ more than half of the country’s workforce, but they also carry the most financial risk.
Financing and consultation are key to building bigger, better businesses, says Naledzani Mosomane, head of enterprise development at Standard Bank South Africa. “The Covid-19 pandemic and the recent economic downturn has led to lower demand and cashflow, which means these businesses need as much financial stability as possible.”
Across the country, informal businesses employ over 3 million workers and many still rely almost exclusively on cash to operate, but in times of financial instability, cash is definitely not king and getting banked means businesses can become more secure, profitable and efficient.
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“Using a bank account is one of the most important steps in becoming a formalised business and as we said in the past, an account will keep your money safe, let you earn interest on your earnings, make money more accessible and help you work towards your financial goals,” says Mosomane.
“We understand that enterprises face a myriad of challenges ranging from a lack of access to finance, markets, skills to resources. That is why we are constantly identifying new ways to support businesses beyond just banking,” says Mosomane.
“Therefore, we have been deliberate in building and creating a range of non-banking solutions that aim to strengthen enterprises. You may not know all your options, but through our Enterprise Direct virtual environment, entrepreneurs can consult with a team of business bankers and specialists who understand unique business needs and match them with the right set of solutions.”
“At Standard Bank, our top priority was allowing our business clients to manage their financial commitments and honour payments to their employees. We then offered a 3-month moratorium on loan payments, loan extensions, restructurings and payment holidays. It was difficult, but we knew we had to work as fast as our clients do to make sure they were safe,” says Mosomane.
“Digitization of key SME client journeys” was vital to customer satisfaction and many local banks were noted in the report as having adopted this as a business strategy. More mobile credit options and other sector specific solutions are already helping SMEs and even smaller enterprises to succeed and they are usually only available through financial institutions.
“Our digital enterprise model has virtual capabilities, meaning that regardless of the size, turnover, or location of a client, they are always able to access a direct team of business bankers and specialists who proactively address their needs. Banks across the country are always trying to develop new, innovative digital solutions to ensure South Africa’s economic success,” Mosomane says.
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