Insights by Linda Chen – Relationship Manager of BBCIncorp
Featuring Laura Huang – Relationship Manager of BBCIncorp
Last time, following the journey of our case study founders, we discovered the ‘the background’ in establishing a business bank account.
As part of the bank application process, you’ll start thinking about all the challenges that may arise. In this article, let’s meet Linda Chen – our Relationship Manager once again and explore ‘the problems’ in a bit more detail.
Are there any common issues that businesses face when applying for bank accounts?
“There are some frequent issues that business has to deal with. For instance, some banks would request a deposit and application review fees prior to the bank account opening, which can be quite inconvenient for some businesses.”
“Notarizing documents is also a big issue. Specifically, notaries in China tend to only stamp the documents without putting their names on the notarization records, making it difficult to process the documents.”
“Companies that have no foreign counterparties or professional reference letters from their personal bank normally have an issue with the bank application process as well.”
“For startup companies, the application can be challenging because of high deposit requirements and the lack of business trading proof. Some newly established companies do not have a specific target market or oriented business plan, so most banks would not prioritize their application.”
How do the issues mentioned above affect business?
“As we all know, a bank account is very important to your business. It ensures business transparency and helps you keep track of expenses and financial situations. So any issues in the application process can lead to payment difficulty, delay of production, and even contract termination.”
How do companies deal with problems from banking applications?
“Most companies would contact the bank directly, hoping to solve the issues with their opening application, but the bank will never disclose anything or provide direct guidelines to complete the application or to prepare the supporting documents.”
“To be honest, it would take a lot of time and effort for businesses to deal with these problems on their own. That’s why many companies tend to look for support from banking application service providers.”
Are there any other problems that you’d like to bust?
“Most companies seek professional support for banking options and applications from us very early on. However, there are many cases where companies come for consultation only after their application has been rejected by the banks.”
“Some companies failed their application with other service agents, and they came to us requesting a 100% success rate for bank registration. Unfortunately, that’s not something we can guarantee, because the final decision will come from the bank after they review the application, business background, and bank policy.”
“We always recommend our premium package, which includes 5 times of banking application. We also evaluate thoroughly and choose the banking options that best suit your business profile, so the final results could be positive.”
You’ve gained an overview of common issues and problems that can affect your bank application. So, what step should you take next?
Look out for the next article in our case study series where we will be focusing on ‘the solutions’ needed for the bank application process of startup.