Monday, 20 November 2017 Sydney
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Banking for your Business::

Starting business in a new country involves a lot of work. New systems, rules and infrastructure require quick learning and adaptation. An important aspect of business is organising your finances. Though your business banking needs will depend on your business’s individual circumstances and financial situation, we have outlined some typical business banking products and services that most Australian financial institutions provide.

 

Bank accounts

 

All businesses need to have a bank account. There are two main types of bank accounts: transaction accounts and savings accounts.

Transaction accounts are a basic necessity of business banking. They can help with payments and receivables and better management of your cash flow. All businesses will need an account which can be accessed by cheque, ATM, EFTPOS, telephone banking or internet banking, and into which you can add your takings, cash and other deposits. For example the Westpac Business One account has all these features and much more.

Savings accounts can help grow your business by offering competitive interest rates and flexible options. For example the Westpac Business Flexi earns interest with immediate access to your money.

 

Merchant Facilities

Merchant facilities provide your customers with the option to pay by credit or debit card.  A merchant facility can improve your cash flow, as your customers don't require cash in their account to pay. Australian financial institutions offer a wide variety of payment options for you to offer your customers.

 

Finance/Lending

Whether your business is just starting up or is well-established, chances are you will need finance at some stage in your business life-cycle. There are two types of finance options offered by most Australian financial institutions: short-term finance and long-term finance.

Short-term finance can help you manage fluctuations in your cash flow. Some common products include business credit cards, overdrafts and fixed term business loans. For example a Westpac Business Overdraft can provide the extra cash your business needs to cover those seasonal and unexpected expenses.

Long-term finance is used for funding investments such as a new business or equipment that expands the capacity of the business. 

There are a number of factors you need to consider before applying for finance such as:

1. how much do you need to borrow;

2. what type of loan will you need;

3. how long will you need it for;

4. can the business afford to repay the loan,

5. interest and any fees involved with the loan;

6. what security can you offer the lender

 

Insurance

Insurance is an essential part of running any business. Taking out the right insurance will help protect your business and minimise its exposure to risk. Your insurance requirements will vary according to the type of business you are operating, but you should be aware that some forms of insurance are compulsory, such as workers’ compensation and third party car insurance.

Australian financial institutions and insurance companies offer many different types of insurance cover. For example Westpac can provide insurance for your business covering property, theft, equipment, public liability and much more.

 

Superannuation

As a business owner, if you have any employees, you have both legal obligations and discretionary obligations relating to superannuation. Superannuation can be an important tool for encouraging and rewarding loyalty and service from your employees. Professional advice is recommended and most financial institutions, such as Westpac, have financial planners ready to help you with your superannuation decisions. 

Your business needs to be profitable as early as possible. Make sure you have all the knowledge for a successful start.

For more information visit www.westpac.com.au

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