Business banking refers to the services financial institutions offer, particularly to businesses. 

These services range from loans, current and savings accounts, loans, credit, financial consultations, and lots more.

Key Takeaways

• Financial institutions provide business banking services to enable business owners to properly manage their business cash flows.

• Business banking offers a range of services, including loans, savings and checking accounts, and financial consultations.

• Moniepoint MFB is one of the largest fintech institutions in Nigeria. It offers business banking services to small and large businesses, such as capital loans, CAC registration services, savings and current accounts, and more.

• Nigeria is home to approximately 40 million MSMEs. About 89.4% of these are in the informal economy. 

You've just set up your dream business or probably have been running one for a while, and the profits are hitting the roof.

Sounds amazing, right? Do you know, however, that to ensure your earnings are properly stored or reinvested, it's best to have a business bank account? 

Business banking offers numerous benefits, such as better organisation and proper tracking of your financial flows. 

Features of Business Banking

What can you expect from a business banking service? Some specific features of business banking include;

1. Business Accounts

Business banking institutions such as Moniepoint MFB offer business accounts that enable them to handle cash flows easily. 

For daily commercial activities like receiving payments from customers and paying for goods, a business bank account enhances a smooth process. You can also leverage business savings accounts, which enable you to save your business earnings for future projects or expenses. 

The amazing thing about having this account is that it helps you properly separate your business funds from your personal finances, especially during tax payments.

2. Business Loans and Credit

Capital is the lifeblood of any business, as access to finances enables your business to grow and expand. However, getting funds can be cumbersome, especially for informal businesses. This is where business banking services offered by institutions such as Moniepoint come in. 

Did you know that approximately 70.1% of Nigerian business owners in the informal sector have borrowed money for their business upkeep, more from family and friends? 

A business bank account enables you to easily access these loans and credit lines from financial institutions.

3. Cash Management and Employee Payroll Services

As a business owner, utilizing cash management tools offered by financial institutions enables you to properly track the funds flowing in and out of your business. Most institutions also provide payroll services that allow you to plan and pay your employees promptly and smoothly properly.

4. Payment Processing

Most businesses accept various forms of payment, including debit cards and mobile payment methods. 

Digital payments split between card and mobile transfers account for over 46.2% of payments received by business owners in Nigeria's informal sector. 

Additionally, Business banking services include business payment services using POS or payment gateway that allow you to accept payments from customers seamlessly.

5. Online or Mobile Banking

Online banking has become the order of the day in today's digital world. Most business, commercial, and retail banks offer various mobile and website banking services that allow business owners and individuals to conveniently access financial services. 

The ability to make transfers and receive payments from anywhere in the world allows for smooth business operations and growth.

Types of Business Bank Accounts

Understanding the various types of bank accounts available can help you get the right business banking services to suit your various business needs.

1. Current or Checking Account

A business checking account allows merchants to conduct daily financial activities like making deposits, receiving payments, and monitoring business finances. Business current accounts enable you to withdraw funds through cheques, drafts, and various online banking services.

2. Business Savings Account

A business savings account allows you to save your business funds for future investments or unexpected expenses. You can earn interest on this account, helping you grow your cash reserve while keeping your money safe.

3. Merchant Accounts

As a business that sells goods or services and processes debit cards and online payments, you'll most likely need a merchant account. This allows you to easily receive payments from your customers, which are initially stored in this specialized account before they can be transferred to your primary account after verification. 

What to Consider When Choosing a Business Bank Account

When choosing a business bank account, here are some tips to keep in mind;

1. The Size of Your Business

The size of your business helps you decide what kind of business account to opt for. For smaller businesses, using a basic current bank account can help you save on charges and fees. On the other hand, a large business dealing with large transaction volumes can opt for bank accounts that offer wider services.

2. Charges and Fees

You should pay attention to various bank accounts and their service charges, which range from monthly to per-transaction fees. It's important that you choose a bank that charges fees that align with your financial abilities. 

3. Your Financial Needs

When choosing a bank service, you should consider your business's unique needs. For instance, does your business require writing cheques, debit cards, online banking services, and so on? 

Understanding your needs is essential to opt for a bank account that offers these services and aligns with your business's requirements.

Conclusion

Business banking is essential to your business growth as it enables you to properly track and manage your business finances. 

From accessing business loans, cash management tools, and banking accounts, business banking institutions such as Moniepoint MFB enable you to benefit from its unique services. Sign up on Moniepoint today to get started on your seamless financial operations.