Why open a business account online?

Customer interface, online management, cost reduction... Banking services for individuals are constantly evolving. What about banking services for professionals? For a long time, they remained unchanged; it was with the arrival of online banks and neo-banks that traditional offerings evolved. Competition increased, new functionalities were introduced and online business accounts saw the light of day.

Over the last few years, these accounts have become increasingly popular. What are they? What are their features? Why opt for an online business account?

What are the advantages of an online business account? What procedures need to be followed to access one? Before answering these questions, it's a good idea to take stock of what a business account is and what's at stake.

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What is the difference between a business account and a current account?

Business bank account: definition

A business bank account is an account opened in the name of the company and not in the name of its directors. This makes it possible to distinguish between the company's assets and those of its directors. Everything in the business account belongs to the company, but not to its founders.

Current account vs. business account

From a practical point of view, these accounts provide access to essential functions for managing company accounts. In particular, a business account allows you to make both national and international transfers on a larger scale, take advantage of accounting integrations, and obtain payment cards (Visa, MasterCard, Gold card, etc.). It really is a tool for managing your business accounts. Depending on the banking institution you choose and the rates you pay, the functions available will differ.

The second major difference between a current account and a business account is obviously the price. Because of the features it offers, a business account is more expensive. However, prices vary enormously depending on the account chosen. An account dedicated to an SASU or an SAS with more than 50 employees will have neither the same functions nor the same costs. You need to compare banks and their offers to choose the one best suited to your project.

Is it compulsory to open a business account?

Obligations governing an online business account

It's worth knowing that opening a business account is often compulsory when you run a company. As soon as capital is deposited, a business account must be opened. All limited companies (SAS, SARL, EURL, etc.) must open a business account (source: the portal of the French Ministries of Economy and Finance).

The share capital represents the company's assets and must therefore be held in its own account. Since all companies are legal entities, it is possible for them to open an account in their own name.

This requirement makes it possible to distinguish clearly between the company's assets and those of its directors, and makes it easier to keep track of income and expenditure.

What about setting up a sole proprietorship?

Previously, there was no obligation for the creators of sole proprietorships (EI, EIRL, etc.). However, since 2015, it has been compulsory for micro-entrepreneurs to open an account dedicated to their professional activity. This may be a business account or a current account (source: the portal of the French economic and financial ministries). This makes it possible to distinguish between business and personal financial transactions.

This obligation does not apply to sole traders who are not subject to the micro-enterprise scheme.

Good to know: in France, there is a right to an account. Anyone can have access to a bank account. How does this work?

• A bank has the right to refuse to open an account for a customer, without giving any explanation.
• Individuals in this situation can turn to the Banque de France, which will redirect them to a traditional bank that will be obliged to give them access to basic banking services.

What are the advantages of an online business account?

Opening a business bank account is compulsory in many cases, so it is essential to compare the offers available on the market. You can, of course, turn to traditional banks such as BNP Pro or HSBC Business. These offer reliable, high-quality services.

But you can also open an online account with a remote bank such as Boursorama Pro. Finally, you can turn to a neobank: Qonto, Shine, etc. These entirely digital organisations are known as banks 3.0. They allow you to manage all your accounts from home, deposit your capital online and take advantage of a host of services to simplify your accounting. To open an account, change a package or even close your account, everything can be done entirely online.

What's in it for you?

• Save time,
• Lower costs,
• Simplicity of use.

At least, that's what these financial organisations are promoting. Neobanks have no physical bank branches, so costs are reduced. Account maintenance charges are generally lower. What's more, all accounts can be managed from home.

There are many advantages to online business accounts:

• national or international transfers
• payment card orders,
• instant transactions, etc.

Traditional banks also offer online services, but you often have to pay extra to access the free services offered by neobanks.

What is the difference between a neobank and an online bank?

The difference lies in accreditation. Like a bank, an online bank is accredited as a credit institution. A neobank, on the other hand, is accredited as a payment institution. This means that a neobank cannot give you credit, and you cannot spend more money than you have in your account.

This difference means that people who have been banned from banking can open unbanked business accounts with neobanks. The services and charges are the same as for other customers.

How do I open an online account?

While managing an online account may seem simpler than a traditional account, what about opening one? What is the procedure for opening a business account online?

Before opening your account, it is essential to compare all the offers available on the market. The bank comparison tool will help you identify the cheapest bank, as well as the one offering the services best suited to your situation: the possibility of making electronic payments, an offer that is accessible to your legal status, a bank adviser who is there to listen to you, etc. Once you have made the comparison and chosen your offer, all you have to do is follow the simple procedures.

To open a business account online, you need to provide a number of supporting documents. These include

• proof of identity
• proof of address less than 3 months old,
• proof of activity (e.g. Kbis extract, proof of registration in the trade register, proof of INSEE registration).

All you have to do is send these documents via your computer to open your account.

Once these procedures have been completed, your documents must be validated by the organisation. In just a few minutes your account is open. No need to go anywhere!

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Conclusion

Online business accounts make it easier to manage your company's accounts. Easy access, reduced costs, a wide range of services: the advantages of online accounts are numerous. These 3.0 banks go much further in terms of digitalisation than traditional banks:

• online drafting of articles of association
• integrated accounting
• electronic expense reports, etc.

With your business account, you can manage more than just your money! Use an online comparison tool to find the best online bank for your business.

Guest article. The expert contributors are authors who are independent of the appvizer editorial team. Their comments and positions are their own.