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Yes, free business banking does exist.
It is not often that South African banks give their services away for free. That is why I’m surprised that not more business start-ups are taking up Nedbank’s offer of ‘free banking’ for 24 months after opening a new account. Transactions that will incur no banking fees are:
- Cash deposits;
- Debit orders;
- Internet banking;
- Cheques written from own cheque book.
Any other transactions, including credit card sales, will be charged. There is a catch, though. To qualify for the free transactions you need to take out a loan to the value of at least R100 000. This could be vehicle finance, a term loan, a home loan, a commercial property bond or plant and machinery finance. Although Nedbank is adamant that the interest rate associated with the loan will be competitive, it’s always a good idea to compare the rate with quotes from the other big lenders. The offer applies only to businesses that have not been in operation for more than two years and are projecting an annual turnover of less than R7.5 million.
Another free service is the Small Business seminars held twice a year. I attended the Cape Town session this week and can vouch that these seminars are not only informative, but also entertaining, inspiring and fun.
Nedbank has also partnered with a company called SwiftReg to enable you to walk into the branch and have your business registered at very competitive fees. They currently charge R360 to register a shelf or a new close corporation and R960 to register a shelf company.
Don’t make the mistake of thinking that this is all pure altruism on Nedbank’s side, though. The first two years are often the time when small businesses are particularly fragile and most likely to fail. Nedbank is thinking long-term. By aiding business owners through this perilous period, the bank is counting on a larger number of mature fee-paying businesses ending up on their client book.
Tags: free, Nedbank, register, seminar, small business, SwiftReg
