For anyone looking to open a business bank account in Singapore, we should be very familiar with the interface and services of at least one of the three local banks. This makes them the natural first choice for new business owners.
In this article, we will look at two OCBC Business Bank Accounts that business owners can choose from – and cover some of their characteristics.
What OCBC Business Bank Accounts Are There?
There are two main OCBC Business Bank accounts that businesses registered in Singapore can apply for:
#1 OCBC Business Growth Account
#2 OCBC Business Entrepreneur Plus Account
For businesses that require to hold multiple currencies, we can also open the OCBC Multi Currency Business Account. Businesses that are registered overseas, but want to open a Singapore business account, can open the OCBC Business Foreign Account.
Read Also: [2021 Edition] 4 Best Business Bank Accounts In Singapore For New Business Owners
What Is The Minimum Monthly Balance For OCBC Business Accounts?
One of the first things new business owners will look at is the cost of opening the business account. Many of us would want to keep the costs as low as possible.
The OCBC Business Growth Account does not have any minimum monthly balance or minimum initial deposit. This means no fall-below fees to worry about. However, we will incur a $10 monthly maintenance fee (waived for the first 2 months) for holding the account. This makes the OCBC Business Growth Account ideal for newer businesses without deep financial backing.
The OCBC Business Entrepreneur Account is quite the opposite. There is an initial deposit requirement of $30,000 – which also acts as its minimum monthly balance. Businesses with an average monthly balance of less than $30,000 will incur a fall-below fee of $50. This can be quite hefty for younger businesses, especially if we do not hold the minimum amount for extended periods. However, if we do keep the minimum balance, then there is no recurring maintenance fee each month.
For businesses that want to want to hold foreign currencies, the OCBC Multi Currency Business Account is able to transact in 13 currencies. There will be a further monthly maintenance fee of $10. On the plus side, there is no minimum initial deposit or monthly balance required. On the OCBC website, it states that we can get a perpetual waiver if we open the OCBC Business Growth Account along with it. While this is good, it means we still need to fork out the $10 maintenance fee if we are holding the OCBC Business Entrepreneur Account.
Opening An OCBC Business Bank Account
We can open the OCBC Business Growth Account entirely online. The OCBC website states that the application process should take less than 10 minutes. The application must be completed by the owner, director or partner as registered in ACRA. You should also have details for your CorpPass when applying.
Read Also: Step-By-Step Guide To Registering Your New Business In Singapore
On the other hand, if we want to open the OCBC Entrepreneur Account Plus, we will need to submit an online application form. An OCBC customer representative will get in touch with us within the same business day if it is submitted before 5pm. A video appointment will be arranged for us to complete the application. Prior to COVID-19 measures, physical appointments would be arranged, at the convenience of the business, to complete the application.
If we close our business bank accounts within the first year, there is a $50 early closure fee that we have to pay.
Receiving Payments From Customers In Our OCBC Business Bank Account
We need to strike a balance when providing payment solutions to our customers. It needs to be cost-effective, so fees do not eat away at our margins, but also have to provide convenience, which means offering multiple ways for our customers to pay.
For businesses that are B2B in nature, invoicing customers is the main way to receive payment. We can leverage on our OCBC business account to create e-invoices, as well as to tap on InvoiceNow, a nationwide e-invoicing network. Once we do this, we will typically receive payment via bank transfers, PayNow Corporate or cheques. There are typically no fees associated with receiving payments in these methods.
Read Also: What Is PayNow For Business And 4 Reasons Why Businesses Should Adopt It
If we need to charge consumers, common payment methods include credit cards (Visa, Mastercard or American Express), mobile wallets (GrabPay, Alipay, Paylah), PayPal, PayNow, eNets or cash. Some of these cashless solutions require us to have a Point-Of-Sales (POS) terminal or set up online payment service, and this will incur a fee. There may also be a short lead time in settlement.
For brick-and-mortar businesses and those that come into contact with customers, OCBC also offers a OneCollect as a payment solution. With OneCollect, we can collect payments through PayNow QR as well as SGQR. Transaction fees tend to be lower when utilising PayNow and OneCollect also provides instant settlement.
Access To OCBC Velocity: Its Internet Banking Platform
When we open our OCBC Business Bank account – whether the Business Growth Account or Entrepreneur Account Plus – we get access to OCBC Velocity, its internet business banking platform. We can also log-in via the OCBC Business mobile app. The suite of business banking solutions can help us run our business more efficiently.
On OCBC Velocity, we can manage our business bank account and make transactions. On top of that, we can also tap on its cash flow forecasting feature and income and expense management tools. This enables us to keep track of our cash flow health and alert us to potential risks in the future.
As mentioned above, we can also embark on e-invoicing via OCBC Velocity. We can create e-invoices for free to send to our clients as well as prepare invoicing and billing templates to speed up the process. This makes it easier to keep track of receivables and we can also get alerts on unpaid invoices. We can also send (and receive) our e-invoices via InvoiceNow, a nation-wide e-invoicing network.
On OCBC Velocity, we can also make use of its templates to manage our payroll and/or regular payments to our suppliers. This shortens the amount of time we have to spend paying employees and/or suppliers each month.
We can also connect to popular business apps such as Quickbooks, Xero, Shopify and others on our OCBC Digital Business Dashboard. This can provide us a clear and consolidated view of our operations at the same time.
Completing Foreign Currency Transactions
OCBC Business Bank account holders can also make foreign currency transactions simply. OCBC currently offers Telegraphic Transfers (TT) or International Automated Clearing House (IACH) transfers.
When making a TT, we have to incur three types of charges:
- Commission: 0.125% (min. $10; max. $100)
- Cable charges: flat fee of $25 (if we make the transaction via our OCBC Business Bank Account) or $35 (via branch/manual instruction)
- Commission-in-lieu of exchange: 0.125% (min. $25; max. $120). This will only be incurred if we do not make a foreign currency exchange with OCBC (i.e. if we transfer the foreign currency via our OCBC Multi Currency Account).
Make making an IACH transfer, we only have to incur one flat charge:
- $30 per out-going transaction
However, we have to note that TTs support transactions in 17 currencies, while IACH transfers support transactions in nine currencies.
In addition, our payees may incur a fee before receiving their money from the beneficiary bank account. When making IACH transfers, our payee will receive the full amount. This can be a benefit when trying to negotiate a more favourable price or payment term when dealing with a foreign supplier or partner.
As mentioned, businesses can choose to open the OCBC Multi Currency Account to store up to 13 foreign currencies:
#1 US Dollar (USD)
#2 Eur (Euro)
#3 AUD (Australian Dollar)
#4 JPY (Japanese Yen)
#5 GBP (Pound Sterling)
#6 CNH (Chinese Yuan)
#7 HKD (Hong Kong Dollar)
#8 CAD (Canadian Dollar)
#9 NZD (New Zealand Dollar)
#10 CHF (Swiss Franc)
#11 SEK (Swedish Krona)
#12 DKK (Danish Krone)
#13 NOK (Norwegian Krone)
There is no minimum initial deposit or fall-below fee. There is a $10 monthly maintenance fee, except to those who open the account along with their OCBC Business Growth Account.
Read Also: 5 Reasons SMEs Should Consider A Temporary Bridging Loan, Even If You Don’t Need The Money
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