Banking has been around in one form or another across varying cultures. Banking even existed before the advent of currencies and paper notes. It began with the Romans who created a creditor-debtor lending method that moved from their temples to formal institutions fully backed by the law. Banks have certainly evolved from the time of the Romans, and today we talk about many other forms of banking.
In ancient times, money was recorded using one of the most common debt instruments in ancient times, known as the ‘tally stick’. It was simply a piece of wood with notches cut into it to indicate money owed. It was then broken in half so the creditor and debtor had the same record of debt.
Today, however, formal banking systems now make use of a digital bank account that allows customers to know how much is in their account per time without calling or visiting the bank.
In this post, we will be exploring all the nitty gritties of not just bank accounts – but business bank accounts, who they’re for and how to open one with ALAT!
- What is a business bank account?
- Types of bank account
- Who needs a business bank account?
- Benefits of a business bank account
- Requirements for opening a business bank account in major banks in Nigeria
- Step by step guide to open a business bank account on ALAT
- What’s great about ALAT For Business?
What is a business bank account?
Before we proceed to explain what a business bank account is, what is a bank account? Bank account is a financial account that is maintained by a registered financial institution for a customer, where every financial transaction made between the bank and the customer is recorded. A business bank account is created by registered organisations, companies, brands and businesses that are established either for profit or non-profit purposes. (if you want to register a business visit the Corporate Affair Commission of Nigeria).
Every financial institution has different types of accounts for various reasons, and each one sets the terms and conditions for each type of account it offers.
Types of bank account
Bank accounts are commonly classified as – but not limited to;
- Savings Account
- Current Account
- Fixed Deposit Account
- Joint Account
- Corporate Account
- Domiciliary Account
- Non-resident Nigerian Account
As a customer, you’re entitled to more than one account. However, the laws of each country specify how bank accounts may be opened and operated. Once you open an account, you entrust your funds to the financial institution on deposit and it is recorded in your designated account by you.
Who needs a business bank account?
Ideally, no traditional small business owner should dream of operating without a business bank account. A business bank account gives the business credibility and helps you manage your business finances in a professional manner and separate those funds from your personal finances. Not only does having a dedicated account for business transactions make small business accounting much easier, but also a business checking account is required for any business operated as a separate legal entity from the owner.
Benefits of a business bank account
Here are some other benefits of a business bank account;
- Helps limit personal liability: Like we noted earlier, the most important step to separating your business finances from personal finances is by having separate bank accounts. Separating your finances prevents you from eating your capital and your profit.
- Professionalism: Having a bank account for your business gives your business a more professional outlook and allows you to earn the trust of prospective customers
- Preparing for future growth: Having a business account gives you more options for future growth. It helps to legitimise your business and if you ever decide to apply for a business loan in the future or other opportunities, having a business bank account makes everything easier.
Requirements for opening a business bank account in major banks in Nigeria
Opening a business bank account with some bank comes with a lot of hassles such as:
- Board Resolution authorizing the opening of the account and approving the account signatories.
- Copy of the company certificate and other incorporation documents.
- Completed corporate account opening form signed by the company’s designated signatories and the directors of the company.
- Residential address of the directors.
- Passports photograph of the signatories.
- Bank Verification Number of signatories of directors
- Valid identification of the directors such as international passport, driver’s license, etc.
- Tax Identification Number for the company
- Utility bill of business addresses such as the Power Holding Company of Nigeria (PHCN), water bill, Lagos Waste Management Authority (LAWMA), etc.
- Evidence of Special Control Unit Against Money Laundering (SCUML) registration for companies categorized as DNFI.
- Work permit for foreigner
- Two reference forms by corporate account holders.
Step by step guide to open a business bank account on ALAT
With ALAT by Wema, you can skip all the paperwork and the trips to the bank, and get right into opening your business bank account on ALAT right from your mobile phone. Here is how!
- Download the ALAT app from your mobile phone.
- Sign up on the signup page
- Input your BVN
- Upload all relevant documents
- Start funding your account
You can also monitor your Wema business bank account using ALAT For Business. This is the Wema Bank revamped Corporate Internet Banking platform designed to help you manage your business account better and stay on top of your finances wherever you are.
What’s great about ALAT For Business?
- Multiple account beneficiaries
- Money transfers of over ₦100 million
- Bills payment and Collection
- No hidden charges
- Bulk Transfers
- Easy Navigation and a refreshed new look
Click here to download the ALAT app from your apple or android device and open your business bank account for your business today!