It is important to have a Singapore business bank account that meets your needs when you run a Singapore trading company. The features and benefits of business accounts vary from bank to bank, and each offers its own set of features.
It is recommended that you gain a deep understanding of the Singapore market beforehand, regarding vital factors such as free-trade agreements (FTAs), targeted customers, trade barriers, taxation, and more for a preferable outcome.
In this article, we will discuss the banking options available to Singapore trading companies, and help you choose the best account for your business.
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, you must proactively keep track of your business’s financial situation 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. On the other hand, going premium too soon would also decimate your business’s bottom line.
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:
Be thorough with your banker in the first meeting, and describe your scope of usage to them. If you operate an eCommerce business that sends/ receives high-volume transactions daily, then it’s probably best to favor accounts with low/ no transaction fees.
Additionally, you won’t need access to in-brand services or contact the bank’s representative as much as expected.
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.
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.
Although additional features may sound like a budget drainer at first, some are worth the extra dollars and can 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
For eCommerce 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 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!
How to pick the right payment gateway?
See our list of top 5 payment gateways for more reference.
Top banks for Singapore trading business
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 helps save costs
- Competitive rates on foreign currencies
- Global presence in over 60 countries and territories worldwide
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 can provide a smooth banking experience for your company.
In addition, it has no minimum monthly balance requirement and charges minimal transaction fees. There is also a waived registration fee for new customers. For SGD Deposit Accounts:
- Minimum initial deposit: S$1000
- Monthly account maintenance fee: S$2 if the average daily balance for the month falls below S$3,000 (waived for the first year)
More information on current fees of specific OCBC services.
When it comes to banking options for your Singapore trading business, Citibank is considered a rather beneficial 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.
DBS is another excellent banking option for your Singapore trading business. Due to its experience working with all kinds of unique business profiles, it knows how to handle trading businesses effectively.
Additionally, DBS’s registration fee and initial deposit are both low, and there’s no minimum monthly balance requirement. You can also keep track of expenses with its comprehensive platform, which grants complete oversight of your finances.
Moreover, incoming and outgoing transfers are generally limited to S$25 each. All these factors make DBS the fitting option for your enterprise in Singapore.
Secure your chance of opening a business bank account
To increase your chances of opening a corporate bank account in Singapore, there are certain things you can do. The first thing is to have all of the required documents ready and organized.
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 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 to have a good relationship with your banker.
- Be prepared to answer any questions your banker may have about your business and its operations.
- Demonstrating a clear and concise business plan can also be helpful in this regard.
Opening a business bank account in Singapore can be a challenge, but it is definitely worth the effort. Make sure you follow the above tips to give yourself the best chance of success in choosing the perfect banking option.
Contact us today via email@example.com if you have any questions and learn more about our corporate banking products and services.
Disclaimer: While BBCIncorp strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact BBCIncorp’s customer services for advice on your specific cases.
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