Choosing a Business Account? Here Are 5 Things to Look Out For

Written by Prospa Team

Want to open a business bank account?

You’re in for many benefits like getting business loans, improving your business credibility, and more importantly, receiving payments from customers into a coprorate account. No more mixing of personal funds with business funds!

But how do you know what to look for when choosing a business account? That’s what this guide is about. 

Here’s what you’ll discover:

1.  5 things you should look out for in a business account

2. What you need to open a business account

3. How to open a business account in just 5 minutes

5 things you should look out for in a business bank account

When choosing a business bank account, how do you cut through the many options available today? Here are five things to help you narrow down your choices.

  • Features and benefits offered

What features do the business account come with and how do they align with your business banking needs?

Many banks now offer online banking services. So you have to choose a bank with a reliable online banking platform, access to a debit card, great customer service and and other features that are important to you as a business owner such as sub-accounts, payment automations, invoicing and loans.

Extra tip: Choose a business bank account with a banking app that features admin tools. This means you get to manage your business and banking all in one place.

  • Bank charges

In general, business accounts come with higher fees than personal accounts. Compare different business bank accounts to see which offers you the lowest fees. 

Also, look out for rates like transfer fees, cost of getting a debit card, withdrawal fees, SMS notification charges, and general maintenance fees. Excessive and unnecessary fees can be annoying and can eat into your business funds.

  • Transaction limits

Transaction limits can negatively affect your business operations. Imagine not being able to pay your supplier because you’ve exceeded your transaction limit for the day. If you make a lot of withdrawals and transfers, find a bank that suits your cash-flow or transaction requirements.

  • Integrations

What accounting software do you currently use and does the business account integrate with them? Will you be able to manage your banking and business finances together in one place? If not, you should consider other options. 

Choose a business account that syncs with your financial workflow. Having accounting software like Quickbooks, Zapier and Sage integrated into your business account will help to further streamline your business operations.

  • CBN approval

Many banks are springing forth every other day, some of which may not have obtained their full licenses or are not compliant with set standards. 

Every bank in Nigeria is required by law to be licensed by the Central Bank of Nigeria(CBN) and all deposits should be insured by the NDIC.

Ideally, you should choose a provider that is licensed by the CBN and insured by NDIC to ensure the safety of your business funds.

What documents do you need to open a business account?

To open a business account here in Nigeria, you’ll need the following documents:

  • Proof of identification: Any document that proves your identity. This could be your National ID Card, International Passport, or Driver’s License.
  • Proof of address: Any document that shows your business address. This could be your utility bills such as your electricity or waste bill. Your bank statement may also suffice in cases where your utility bill is not available. 
  • CAC Document
  • Valid Identification of Directors & Signatories
  • Bank Verification Number (BVN) of Proprietors
  • Passport Photo(s) of Signatories
  • Tax Identification Number (TIN)
  • Board Resolution
  • Two (2) References from corporate account holders

How to open a business account in 5 minutes

Prospa gives business owners access to a business bank account in 5 minutes.

A Prospa business account is nothing like a regular business account. Instead, it’s a smarter business account packed with all the tools you need to start, run and grow your business, all in one place.

When you open a business account with Prospa, you get;

  • Zero transfer charges
  • No cash/transaction limits
  • Great tools like; Webstore, debit card, POS 
  • Business management features like bookkeeping, customer management, inventory management, invoicing, virtual receipts, subaccount, budgeting, revenue goal, and more.
  • Seamless integration; Prospa integrates with Quickbooks, Zapier & Sage.

Want to open a business account with Prospa? Click here

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