Small business banking

**ians** · 24-Aug-14, 07:18 PM

I visited FNB on Saturday.

Some interesting points...

Let's start with the fees. My service fee last month with Standard bank was a little over R 560.00, my turnover last month less than R100 k, this excludes all other fees, transfer fees, cash withdrawal fees etc etc etc. one example I did a R 550 eft transfer from my phone to a company, it cost me R55.00, that was just one of the transfers. It was actually a little more but we not going to stress about exact figures.

Cheque card, FNB offer a cheque card and an investment account with your business account. Standard bank doesn't offer a cheque card on business accounts only personnel accounts, what does this mean to a small business like mine, fees and more fees why because if I pay with my debt card ever time I swipe it, so to prevent these fees I transfer the money to my credit card which again cost fees, but even more of a mission, is having to wait the 3 days for the money to reflect in my Standard bank credit card. FNB cheque card, free unlimited swipes.

Cost for the package I am looking at R200 which includes a pile of services which interest me for what I want to do and are gona save me a couple hundred a month.

I am going to keep my one business current account with Standard bank while I test the waters with FNB, but from tomorrow I start shutting all other accounts with Standard bank, I just can't afford to bank with Standard any longer.

Ebuck sis another option which comes with the FNB account, I buy a lot of fuel. Standard bank ucount, no longer offers points for fuel, ebuck do, another saving which could cover my R200 service fee at FNB,

Gona be an interesting few weeks ahead watching the different bank accounts.

**ians** · 24-Aug-14, 07:22 PM

Just to put you in the picture, even if Nedbank was cheaper and offered a better service, I wouldn't even consider them. 23 years ago when I started my electrical business they told me piss off and take my business somewhere else, when I applied for vehicle finance. To add salt to wound, the bank manager told my business wouldn't last 5 years. Funny how they the ones begging me for my business and retrenching staff.

**ians** · 24-Aug-14, 07:36 PM

One thing I did forget to mention which I believe is going to be a huge factor when considering which bank to use as a small business. Smart phone payment methods, especially as a contractor, not so much for my manufacturing side, as payments will be done by electronic transfers.

As I am sure many contractors would agree, on site payments are going to become a reality soon. You fit the light, bill the customer and swipe the card. I believe this is going to help a lot of small contractor survive in the future, improving cash flow.

FNB informed me that they don't offer this facility at this point in time, but it should be available by the end of the year.

I am also told that there are a few challenges with this facility with the other banks at the moment. Maybe someone can assist with this comment. Do you experience any problems with this form of payments and are the costs a bit high?

**IanF** · 24-Aug-14, 07:54 PM

Originally Posted by ians

One thing I did forget to mention which I believe is going to be a huge factor when considering which bank to use as a small business. Smart phone payment methods, especially as a contractor, not so much for my manufacturing side, as payments will be done by electronic transfers.

As I am sure many contractors would agree, on site payments are going to become a reality soon. You fit the light, bill the customer and swipe the card. I believe this is going to help a lot of small contractor survive in the future, improving cash flow.

FNB informed me that they don't offer this facility at this point in time, but it should be available by the end of the year.

I am also told that there are a few challenges with this facility with the other banks at the moment. Maybe someone can assist with this comment. Do you experience any problems with this form of payments and are the costs a bit high?

Ian have a look at snapscan

but it is a Standard bank product. What I understand is you get a QRcode which the customer scans with their phone and then puts in the amount in and it is transferred. I have been paid a few times by FNB app a few times and that works immediately FNB to FNB.
You could get the QRcode printed on your invoices or back of your business cards.

**IanF** · 26-Aug-14, 09:12 AM

Originally Posted by ians

One thing I did forget to mention which I believe is going to be a huge factor when considering which bank to use as a small business. Smart phone payment methods, especially as a contractor, not so much for my manufacturing side, as payments will be done by electronic transfers.

As I am sure many contractors would agree, on site payments are going to become a reality soon. You fit the light, bill the customer and swipe the card. I believe this is going to help a lot of small contractor survive in the future, improving cash flow.

FNB informed me that they don't offer this facility at this point in time, but it should be available by the end of the year.

Ian
I just remembered about Payfast Pay now you could sign up no monthly fee and go onto the website at the job insert the amount and customers email. Then they can pay via Payfast website with their credit card. You can withdraw the money from Payfast after 48 hours which takes up to 2 days.
Just something to throw into the pot.

**IanF** · 24-Aug-14, 07:44 PM

Ian
Thanks for giving feedback, This should be interesting let us know about your experience with Internet banking as well

**Houses4Rent** · 28-Aug-14, 01:33 PM

To me running a business as sole prop is financial suicide. If anything goes wrong you go down with it - sometimes for a long time.

**ians** · 24-Aug-14, 08:35 PM

Thanks Ian, I look forward to the new challenges, there are a few things which concern me but at this point in time, I need to start looking at a more effective method of banking I cannot afford Standard bank business banking fees, which have become an overhead that I can reduce. It might not be as smooth as I am hoping but at least I am gona saving a pile of money.

**Houses4Rent** · 28-Aug-14, 09:41 PM

It works until the day someone successfully sues you for something you did not see coming. Lets think of an example - a car accident maybe and your insurance found a way to reject your/the opponents claim. Make that a bad accident where someone ends up in a wheelchair or worse... Suddenly you have a hectic debt to pay....

Or you are a landlord like me and someone slips in your house and manages that it was your fault e.g. wrong tiles used. Ends up being badly hurt for short or worse long term.

A large client lets you down and does not pay you and puts you in a bad cash flow situation and suddenly you cannot pay your creditors as you should.

SARS picks up long and largish mistakes your accountant made and now you owe SARS a large amount and penalties on top.

You are in married in community of property and your spouse has large debts or suffers one of the examples above. Suddenly you are going down too.

We all do not plan to be unable to pay our debts and then suddenly Murphy strikes... Never say never.

There are probably many other examples.

**ians** · 25-Aug-14, 07:20 AM

I wanted to get a more accurate figue for my banking fees so I just rounded off the amounts and added up. Last month 1 of my standard bank accounts cost me R 1100. By changing to FNB and using their R300 package, I should save around, being realistic because there might be a few hidden cost or cost which I might not have taken into consideration, around R600. By closing other accounts I can add on another R200. That would cover my cellphone and land line cost .