May a dedicated personal account be used for a business?

eshwar

Senior Member
Joined
Mar 22, 2011
Messages
501
If you can't afford R300 a month for bank fees then perhaps you should not be running your own business. In the great scheme of things R300 a month is nothing.
it was definitely not from affordability. More from being cost effective. Why pay extra for something that won't be used.
 

^^vampire^^

Expert Member
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Feb 17, 2009
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3,595
If you can't afford R300 a month for bank fees then perhaps you should not be running your own business. In the great scheme of things R300 a month is nothing.
it was definitely not from affordability. More from being cost effective. Why pay extra for something that won't be used.
It goes further than this. I've run a business for many years off an FNB gold account with the unlimited option. Each month I pay a fixed amount (currently about R180) and that's all I ever pay. When I wanted to open an FNB business account it was about R380 monthly for the account with 5 free online transactions, after that I must pay for each transaction. Now some months I do in excess of 100 transactions or more and so it comes down to either paying R180 for everything or up to R1000 for the same thing. I don't care if I'm making a billion rand a month I'm still not paying FNB 5-6 times more for the same service.

Only time I've ever had a problem is when people want a donation certificate in which case I just decline their donation as they will want the money donated into a business account which I simply tell them I don't have.
 

Swa

Honorary Master
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May 4, 2012
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22,977
There is no reason you can't. Obviously with a Pty Ltd there's more requirements with accounting and auditing. When it comes to interest you are correct but this is something you declare to Sars in any case or not as most people do. If Sars ever does do an audit you have the proof the interest is that of the business and not yours.

Wrt to payments there's no way to know if an account name matches without using a verification service and I doubt any business will use that when making payment but they may require proof it's the correct account as employees have committed fraud by substituting with their own. Usually though an official company letter or details from an official source is sufficient.
 

Crowley

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Jun 9, 2006
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6,186
My clients wanted stamped letters from the bank with my company account details when I applied for my vendor ID. Small companies might accept company letters though.
 

acidrain

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Jan 7, 2007
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4,887
My clients wanted stamped letters from the bank with my company account details when I applied for my vendor ID. Small companies might accept company letters though.
This. If you ever plan on doing vendor applications, 9/10 the one requirement will be bank account confirmation letter ( from the bank ).
 

eshwar

Senior Member
Joined
Mar 22, 2011
Messages
501
Thanks a lot for the information guys.

It's a pity that business banking is so so expensive. At a system level I cannot see why there is a cost difference to the account compared to a personal account. This makes me think it's just opportunistic pricing coming from a lack of competition in the space.

Bank Zero is busy taking it's sweet time to come on. It would be great to see some competition.

R 80 per month minimum for what. It's not even about affordability. It's like TV licenses, it's a small amount to pay if value is realised.
 
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