7 minute read
20 Apr 2022

Top Business Banking Options for Your Singapore Trading Business

When you’re running a Singapore trading company, it’s important to have a business bank account that can support your needs. There are many different banks that offer accounts for businesses, and each one has its own set of features and benefits.

In this article, we will discuss the banking options available to Singapore trading companies, and help you choose the best account for your business.

1. What to consider when choosing a business bank account?

There are no set-in-stone rules when it comes to finding a business bank account. As a merchant, it’s your duty to proactively keep track of your own business’s financial situation in order to make well-informed banking decisions.

While accounts with low initial deposits and favorable maintenance fees can be attractive at first, they often lack the bandwidth to accommodate the future growth of your business.

Whereas going premium too soon would also decimate your business bottom line.

But opening a business account doesn’t have to be such a slippery slope.

The goal is to strike a balance between affordability and scalability. With that in mind, here is a set of core criteria that’ll help aid decision-making:

1.1. Fees

Be thorough with your banker in the first meeting, and describe to them your scope of usage. If you operate an e-commerce business that sends/receives high-volume transactions daily, then it’s probably best to favor accounts with low/no transaction fees. You’ll also not likely make much contact with the bank’s representative or need access to in-brand services.

1.2. Security

Even though most banks have ironclad in-house security infrastructures to protect users’ transactions – danger still lurks in this vast sea of digital data – with eCommerce data breaches making up 80% of payment-card-related solicitations. For this reason, it’s imperative to go with banks that are under the protection of the Federal Insurance Corporation or the National Credit Union Association.

1.3. Minimum Deposit and Balance

Some banks impose a fall-below fee in the event of insufficient funds, avoid this by talking with the consulting agent beforehand. In addition, ask for minimum and maximum limits for transfers.

1.4. Extra features

Although additional features may sound like a budget drainer at first, some are worth the extra dollars and can actually add more value to your account. The following are some add-on services that you should consider:

  • Bulk payment and invoicing tools
  • Accounting software integration
  • Automated expense categorization
  • Money tracker and analytics

1.5. Merchant account

For e-commerce businesses with small-scale operations, a merchant account should be a top feature to consider.

In layman’s terms, a merchant account has the same function as your typical bank account, with the only difference being in its ability to access funds from credit and debit payments.

In addition, you’re also allowed faster access time (usually within 2 days) after the transaction occurred. If you do decide to opt for one, know that there are prerequisite contractual agreements that you have to enter with your acquiring bank.

But if you’re just starting out and are not ready to get bogged down by contractual obligations, a payment service provider can be a good alternative: you can accept card payments right off the shelf without the extra steps!

To find out which type of provider is right for your business, visit our dedicated article below:

Merchant Account vs Payment Service Provider vs Payment Gateway

2. Top banks for Singapore trading business

2.1. Standard Chartered

With strong ties to Great Britain’s prolific banking prestige, Standard Chartered has been staying true to its “here for good” business motto. Standard Chartered is one of the top banks for Singapore’s trading businesses.

The bank offers a wide range of services, including an easy and fast account opening process, no minimum monthly balance requirement, and competitive rates on foreign currencies.

In addition, Standard Chartered has a global presence with more than 60 countries and territories worldwide. Some of the features and benefits that Standard Chartered offers to Singaporean traders include:

– A broad range of banking products and services to meet all your needs
– Fast account opening process – get started in as little as four business days
– No minimum monthly balance requirement so you can keep your costs down
– Competitive rates on foreign currencies so you can make the most of your trading opportunities
– Global presence in over 60 countries and territories worldwide

2.2. OCBC

As one of the big four banks in Singapore, OCBC offers a full suite of services for businesses, including those in the trading business. It has over 50 years of experience with all types of businesses and is able to provide a smooth banking experience for your company. In addition, it has no minimum monthly balance requirement and charges minimal fees for transactions. There is also a waived registration fee for new customers.

– Minimum initial deposit: S$500

– Monthly account maintenance fee: S$20 (waived if total average daily balance maintained is above S$5000)

– Fees for transfers: Free inward and outward transfers between OCBC accounts; SGD12 outgoing transfer to other banks within Singapore; SGD40 outgoing international transfer.

2.3. Citibank

When it comes to banking options for your Singapore trading business, Citibank is a great choice. It has a lot of experience with all sorts of unique business profiles, so it knows how to best work with trading businesses.

Additionally, its registration fee and initial deposit are both low, and there’s no minimum monthly balance requirement. Plus, transfers in and out of the account are generally limited to just S$25 each. All these factors make Citibank an excellent option for your Singapore trading company.

2.4. DBS

DBS is another excellent banking option for your Singapore trading business. It has a lot of experience with all sorts of unique business profiles, so it knows how to best work with trading businesses.

Additionally, its registration fee and initial deposit are both low, and there’s no minimum monthly balance requirement. It also has a comprehensive platform that grants comprehensive oversight into your finances; keeps track of expenses, and more.

Plus, transfers in and out of the account are generally limited to just S$25 each. All these factors make DBS an excellent option for your Singapore trading company.

3. Tips to Secure Your Chance To Open A Business Bank Account

When you are looking to open a business bank account in Singapore, there are certain things you can do to secure your chance of opening a corporate bank account. The first is to have all of the required documents ready and organized. This will help the process move along more quickly and smoothly.

The next step is to make sure that you have a good relationship with your banker. Building a positive relationship with your banker will go a long way in securing approval for your account.
Finally, be prepared to answer any questions that your banker may have about your business and its operations.

Having a clear and concise business plan can also be helpful in this regard. By following these tips, you can effectively up your odds of being approved.

– Having all the required documents ready and organized will help the process move along more quickly and smoothly.
– Make sure you have a good relationship with your banker.
– Be prepared to answer any questions that your banker may have about your business and its operations.
– Having a clear and concise business plan can also be helpful in this regard.

4. Conclusion

Opening a business bank account in Singapore can be a challenge, but it is definitely worth the effort. By following the tips listed above, you can give yourself the best chance of success. Contact us today to learn more about our corporate banking products and services.

 

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