Corporate Banking Account – 5 Transactions You Can Do13 min read

Corporate Banking Account – 5 Transactions You Can Do13 min read

Opening and maintaining a corporate banking account is essential for running a successful business. A corporate account helps keep business finances separate from personal finances, simplifies accounting and tax processes, and provides professional credibility. 

But what exactly can you do with a corporate banking account? In this article, we’ll explore the 5 main types of transactions that are commonly performed with a corporate account.

What Transactions are Made With a Corporate Banking Account?

A corporate banking account provides essential tools for businesses of all sizes. Here are five main types of transactions commonly made:

Receiving Payments

One of the primary purposes of a corporate banking account is to receive payments from customers. Whether customers are paying invoices, membership fees, or making online purchases, a corporate account provides a central location for all payment inflows. 

Business owners can provide customers with their corporate account details, such as the bank name, account number and routing number to process payments efficiently.

Paying Vendors and Suppliers

On the other side of the transaction spectrum, a corporate account allows businesses to pay suppliers, vendors and other commercial partners. This includes paying invoices from utilities, professional service providers, materials suppliers and more. 

Managing payables through a corporate account helps businesses track expenses, ensure on-time payments and maintain positive relationships with partners.

Processing Payroll

Paying employees is a core operating expense for many businesses. With a corporate banking account, payroll transactions become seamless. 

Business owners can set up direct deposit to distribute paychecks into employee bank accounts on scheduled pay dates. This convenient process reduces payroll administration headaches.

Managing Business Expenses

With the flexibility of online and mobile banking, corporate accounts make it easy to manage everyday business expenses like utilities, rent, insurance, equipment purchases and more. 

Owners can pay bills, transfer funds between accounts and have full visibility into cash flow. This centralized expense tracking is vital for budgeting, accounting and profitability analysis.

Investing Withdrawals

Beyond daily operations, some corporate banking accounts provide robust investment services to grow business capital. 

Accounts may allow investment withdrawals to purchase stocks, bonds, mutual funds, certificates of deposits and more – all without touching personal assets. Professional investment advice can also help guide strategic allocation of business profits.

The above five transaction types are at the core of what most businesses accomplish through a corporate banking account. While personal responsibilities still require personal banking, a corporate account automates key financial activities to keep operations running smoothly.

Can More Than One Person Access a Corporate Banking Account?

Managing a corporate banking account alone can become overwhelming for business owners, especially as a company grows. 

Fortunately, corporate accounts allow additional authorized signers to assist with transactions. Having multiple points of access ensures consistent financial oversight and reduces reliance on any single individual.

Some key points about additional signers on a corporate account:

• Business owners establish signers by submitting their information and signatures during account opening. Signers are then verified and approved by the bank.
• Common signer roles include CEOs, CFOs, accountants and office managers. Signers can be assigned view-only, limited transaction or full access permissions as needed.
• Banks may limit the total number of signers allowed per account. Some extend signer privileges to board members to facilitate strategic financial decision making and oversight.
• Signer changes can be requested by submitting updated board resolutions or forms signed by existing authorized representatives. This provides flexibility as a company’s needs evolve over time.

The accessibility that multiple authorized signers provide is invaluable for growing businesses. It allows appropriate delegation of financial tasks while maintaining internal controls over the corporate banking account.

What Documents are Required to Open a Corporate Banking Account?

Opening a corporate banking account follows stricter procedures compared to personal accounts due to regulatory requirements. Know Your Customer (KYC) and Anti-Money Laundering (AML) standards mandate banks collect due diligence documents to verify a business’s legitimacy. 

The paperwork required can vary slightly between financial institutions, but typically includes:

• Articles of Incorporation – This states the company’s basic registration details and helps prove its legal status.
• Business License – Provides the business activity scope and physical address on record.
• EIN/Tax ID Certificate – The Employer Identification Number assigns a unique identifier for tax filing and reporting purposes.
• Board Resolution – This document formally authorizes the account opening and names initial signatories.
• Director/Owner ID Verification – Passports, driver’s licenses or national IDs of directors and substantial shareholders are regularly requested.
• Proof of Business Address – A utility bill, lease or similar documentation establishes the physical location on file.
• Signed Account Application – Provides additional details about the business, signers and intended banking activities.

Providing complete documentation upfront accelerates banks’ verification processing for faster account setup. Incomplete submissions may result in delays or even rejection. 

Making sure to include all required paperwork saves time and hassle later on.

Can Money Be Sent Internationally With a Corporate Banking Account?

One of the major advantages of a corporate banking account at a digital bank like The Kingdom Bank is the ability to easily facilitate global money movements. With the rapid rise of cross-border commerce, many businesses now have international customers, vendors or partnerships that require transferring funds across borders. 

A corporate account at an online bank with global payment capabilities streamlines these international transactions.

Some ways a corporate account holder can send money internationally include:

• Wire Transfers – Fast transfers but limited by business hours. Fees vary by country and currency exchange rates apply.
• Foreign Exchange – Exchange currencies and make payments in foreign denominations directly from the corporate account. Live rates provide transparency.
• Multi-Currency Accounts – Some banks like The Kingdom Bank allow multiple currencies like USD, EUR, GBP etc to be consolidated under a single account number for easy cross-border payments.
• Virtual Payment Cards – Generate virtual cards in different currencies to make online or invoice payments globally with built-in controls.
• Foreign Subsidiary Accounts – Businesses may link international accounts under the same login for consolidated visibility and fund transfers between corporate entities.

With cost-effective, seamless cross-border payment options, a corporate account at a well-regulated digital bank is perfectly suited for companies with international operations. 

The centralized accessibility it provides is vital for growing businesses in today’s global landscape.

The Best Online Bank for a Corporate Banking Account

When choosing where to bank as a company, one name rises above the rest for corporate services: The Kingdom Bank. 

Based in Dominica, The Kingdom Bank has disrupted the industry by pioneering online-first banking focused purely on business clients.

Some key strengths distinguishing The Kingdom Bank as a premier provider include:

• Digital-First Experience: Intuitive mobile/desktop banking portals replace clunky traditional systems.
• Global Accessibility: Accepts clients worldwide with account services available 24/7 remotely.
• Robust Security: Military-grade encryption, multi-factor authentication, and AI-powered fraud detection keep funds and data protected.
• Multi-Currency Accounts: Hold 50+ world currencies in a single master account with inter-currency transfers and card spending.
• Integrated Accounting: Native bookkeeping through direct data imports from popular accounting software.
• Advanced Payments: Issue and manage virtual and physical corporate cards alongside cross-border wires, targeted payouts, and automatic payroll processing.
• Competitive Pricing: Transparent fee structures compare very favorably against legacy brick-and-mortar competitors.

While large corporate treasury needs remain the domain of traditional private banks, The Kingdom Bank provides a refreshing alternative maximizing digital convenience at an affordable cost. 

As the future of banking moves online worldwide, The Kingdom Bank’s customer-focused model leads the pack for savvy growing businesses.

Whether processing daily customer deposits, paying international suppliers, issuing paychecks, or developing long-term investment strategies, advanced transaction capabilities through a dynamic corporate banking account power every business need. 

And no provider does online banking better for companies than industry innovator The Kingdom Bank.