If you have a mid or large-sized business, you may already know the benefits of business Current Account – everything from cash management service solutions, higher transaction limits, and Point of Sale (PoS) solutions to premium business cards and home-banking services. But because a Current Account is designed keeping in mind the specific needs of business enterprises, there is a whole range of other business solutions that allows a Current Account to play a crucial role for your business. Here is how.
1. Business financing solutions
When you open a business bank account, you have access to instant short-term and long-term credit. For short-term credit, you have the overdraft facility at your disposal. Whenever you require money for running your business, say when too much money is tied up in inventory or when there is a delay in accounts receivables, you can draw funds more than your Current Account up to a certain pre-defined limit.
In addition to short-term credit, when you open a Current Account for startups and businesses, you also have easy access to long-term business loans for growth and expansion purposes. You can avail collateral-free business loans up to Rs 75 lakhs with flexible repayment options within 72 hours. Since you already would have a Current Account with Kotak, the approval and disbursal process would be quick and hassle-free.
2. Optimum utilisation of funds
When you are running a business, it is crucial that you don’t let your money sit idle ever and direct it towards fruitful ventures. However, it’s also important to have a certain amount of liquid funds that you can access at any time without any hurdles. And with Kotak’s ActivMoney feature of Current Account, this conundrum is solved.
With the ActivMoney facility, whenever your Current Account balance has funds above a certain limit, those funds automatically get created into a fixed deposit so that you can earn good returns on that money. And whenever your Current Account balance falls below threshold, money from the fixed deposit is transferred to your account. This ensures that you always have access to your funds but at the same time, your money is making more money for you through the interest earned on fixed deposits.
3.Support in business functions
When you open a business bank account with Kotak, you get the best deals and offers for your business that go beyond banking. Whether that is managing salary payments with payroll software, getting assistance on legal and tax issues regarding your business, or supply chain management and logistics support, as a Current Account holder, you have access to these services.
In addition to this, if your business trades with customers and vendors outside of India, you can also benefit from a range of trade services offered to business bank account holders – from foreign direct investments and external commercial borrowings to capital account transactions and remittances.
Choose a Current Account as per your business needs
Kotak offers a wide variety of business Current Account, each catering to a specific kind of business and offering custom solutions. You can go through and compare the features of different Current Accounts and choose the one that best meets your business needs.
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.