Business Bank Account Considerations
Bank accounts in Malaysia offer a variety of features to help streamline running your business through facilitating financial transactions or just by offering essential services. These features often come at a cost and not every type of account will be suited to the needs of your business. Choosing the right type of bank account can help facilitate the success of your business in Malaysia. A business bank account will not only allow you to keep your personal and business finances separate, but it will also provide a range of benefits, allowing you to access loans, lines of credit, and other financial services.
Malaysian Bank Account Types
- Business Savings Account: A basic savings account that allows you to deposit and withdraw funds as needed. This type of account typically offers low interest rates, but it can be a suitable option for small businesses with limited transactions.
- Business Current Account: A more advanced account that offers a range of features and services. These include overdraft facilities, cheque books, and the ability to process a higher volume of transactions. Business current accounts are suitable for larger businesses with a high volume of transactions.
- Business Interest-Bearing Account: A type of account that allows you to earn interest on your business funds. The interest rate offered will typically vary depending on your account balance and which bank you choose.
- Business Cash Management Account: An account designed for businesses that need to manage large sums of cash. These typically offer cash management services, such as automatic sweep facilities and credit facilities, to help businesses manage their cash flow.
- Multi-Currency Business Account: As the name suggests, these types of accounts will allow you to make transactions using multiple currencies, making it a convenient option for businesses that frequently send or receive payments from overseas.
Factors to Consider When Choosing an Account
- Business Size: If you are just starting out and have a small business, a basic business savings account may be suitable. However, if you have a larger business with a high volume of transactions, you may need a business current account with higher transaction limits and access to more advanced financial services.
- Business Needs: Consider the types of transactions you most anticipate needing to make for your business, the volume of those transactions, and the types of services you will want going forward as your business gets started (e.g., access to lines of credit). For example, if you frequently send or receive payments from overseas, a business account with multi-currency capabilities might be more advantageous than the other options available to you. If you process a high volume of transactions, it may be more important to open a business account with low transaction fees or cash management services.
- Interest Rates: Consider the interest rates offered by different banks for their business accounts. Some banks offer higher interest rates for higher balances, which can help you earn more on your business funds.
- Online Banking: It is important to choose a business bank account that offers a secure and easy-to-use online banking platform, this is especially true for e-commerce businesses. Consider which banks offer services that let you manage your account, pay bills, and make transactions remotely.
- Customer Service: Choose a bank with a strong reputation for customer service and dedicated business banking support.
- Fees: Familiarize yourself with which fees are included in the different business bank accounts. These fees will differ from bank to bank, so be sure to take this step with every bank you are considering. Some banks may charge monthly maintenance fees, transaction fees, or other fees for using their business banking services. Make sure to compare the fees charged by different banks and choose one that offers the most cost-effective solution for your business.