India is home to over 633 lakhs MSMEs (micro, small & medium enterprises), which contribute significantly to the country’s economic development. Among these, 99% are micro-enterprises, employing only a handful of people and started with a small amount of capital. If you are one of them, you already know the importance of money for the smooth functioning and growth of your business. Here’s a look at how a zero balance current account can give your business a little more financial flexibility.
Importance of zero balance current account for small businesses
Money is the lifeline of any business and to achieve your entrepreneurial ambitions and turn your ideas into reality, you need to maintain a healthy cash flow. This is where a zero balance current account can help.
Most current accounts require the business to maintain a minimum balance in the account. They even levy steep charges when the funds fall below the minimum balance requirement. This can be challenging when you have limited resources and tight budgets for your small business, which is the case during the growth stages of most MSMEs.
Opening a current account with no balance requirement gives you complete control over your capital to accelerate the growth of your business. Every decision becomes a business decision, rather than being driven by the fear of penalties or low-balance fines.
With the flourishing gig economy, freelancers, contractual workers, and consultants, the kind of business and their unique finance management needs are changing. For such businesses too, a current account with zero balance requirement is an attractive option to maximise the use of their financial resources.
Benefits of opening a zero balance current account
Unlimited transactions
With a current account, you can initiate business transactions freely. Current accounts typically do not have an upper limit on the amount or number of withdrawals or deposits.
Overdraft facility
If your small business needs funds to execute a big order or to expand to a new market, the overdraft facility can help. A current account may come with a preapproved limit for overdrafts. The overdraft facility gives your business instant access to credit for short durations. With this, you have access to additional liquidity to operate smoothly, without disrupting the business.
Seamless foreign transactions
Some current accounts allow your business to seamlessly conduct foreign transactions. If you’re conducting these transactions online, you can monitor forex rates and make informed decisions. This facility can be a boon for small businesses planning to expand beyond India.
Advantages of online banking
You can access your current account online or use the mobile application and enjoy 24/7 access to your funds.
With a current bank account on your phone via the app, you have access to all business banking services on a single platform. You can monitor, plan, transact, and pay bills in just a few taps from your mobile app. This significantly reduces effort and saves time for small firms, allowing them to focus on critical business functions.
Hassle-free account opening
Opening a current account with zero balance is quick and easy. Choose an account after considering the current account opening charges, monthly or annual maintenance charges, online and offline facilities, and customer service reputation.
You can open a zero balance current account in many ways, such as:
- Via the bank’s website
- Use the mobile banking app
- Call the bank’s customer service number
Give your small business the added advantage of a zero balance current account. Such an account is a modern banking solution to empower MSMEs to continue to offer jobs, drive innovation, and play a key role in India’s economic development.
