Lesson 13: Opening a current (checking) account at the bank
Banking has changed rapidly with the advent of the internet. Online bank transfers (wires) are now common and, for many businesses, paying their bills with cheques (checks) has become a thing of the past.
The other big difference is the switch from cash to cards in the sales function. Cash is an expensive asset to manage: you have to count it, make change with it, secure it, and bank it. If a cash collection and delivery service is used, that is expensive. So no wonder that retailers and other businesses have jumped onto cards as a source of receiving payment from their customers.
Start-ups often start trading from their personal bank accounts and Ethel Nyembe, Head of Small Enterprise, ED & Franchising of Standard Bank explains why trading right from the start from a business bank account will help you in the long run
[Duration 1:20 - STOP at 1:20]
The other big difference is the switch from cash to cards in the sales function. Cash is an expensive asset to manage: you have to count it, make change with it, secure it, and bank it. If a cash collection and delivery service is used, that is expensive. So no wonder that retailers and other businesses have jumped onto cards as a source of receiving payment from their customers.
Start-ups often start trading from their personal bank accounts and Ethel Nyembe, Head of Small Enterprise, ED & Franchising of Standard Bank explains why trading right from the start from a business bank account will help you in the long run
[Duration 1:20 - STOP at 1:20]
Extenders
- Uncle Ernie doesn’t trust banks and says you should keep your cash hidden under your mattress instead. What advice would you give to him?
- What what you do if a customer pays you with a cheque, and when you deposit it into your bank account you get a message from your bank that they have dishonoured (bounced) the cheque because of ‘insufficient funds’ in the customer’s account at their bank?