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How To Open A Business Account With Rak Bank

Dec 1, 2023 | Finance

Opening a business account with Rak Bank is a strategic move for entrepreneurs and companies aiming to leverage the bank’s comprehensive financial services in Dubai. As a financial institution dedicated to supporting the growth and operational efficiency of businesses, Rak Bank offers a variety of account types tailored to the unique needs of each business entity. Rak Bank provides the tools and resources necessary for efficient financial management, from the zero-balance RAKstarter Account designed for budding enterprises to the robust Business Current Account for established firms. We are here to guide you through selecting the right business banking product, understanding the benefits, and navigating the application process, enabling your business to flourish with Rak Bank’s business banking solutions.

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Introduction to RAK Bank Business Services

Overview of RAK Bank for Businesses

RAK Bank is known for its commitment to providing tailored financial solutions, making it a top banking choice for businesses in Dubai. The bank’s business banking strategy is designed to meet the specific needs of companies of all sizes. You’ll find that RAK Bank offers a wide array of services to support and manage the diverse financial requirements of the business community.

Range of Business Banking Products

RAK Bank ensures that you have a wide selection of banking products to manage your finances effectively. The Business Current Account is a key offering with a minimum average monthly balance of $6,806 (AED 25,000). This account fits businesses of all types, from small startups to larger corporations.

The bank also recognises the global nature of transactions in today’s business by providing the option to choose from multiple account currencies. These include AED, USD, EUR, or GBP. The multi-currency feature is particularly useful for businesses engaged in international trade or those that need to handle transactions in different currencies.

Benefits of Choosing RAK Bank for Your Business

Choosing RAK Bank as your business partner comes with many benefits. One of the most attractive is the competitive interest rates on business accounts. These rates are designed to help your business grow by maximising your capital. Interest rates vary from 0.10% to 0.25% per annum for accounts in AED and USD, depending on the balance.

The bank calculates interest using a differential method, which adjusts rates based on the balance. This can be more beneficial for you as your account balances fluctuate. It’s important to keep in mind that these interest rates may change at the bank’s discretion, so it’s wise to stay informed about the current rates.

The RAK Bank business also offers an opt-out option if you prefer to avoid earning interest on your accounts. You can arrange this with a simple email from your business’s registered email address. This flexibility and responsiveness to customer preferences show the bank’s willingness to adapt.

RAK Bank has stepped into the digital age by offering robust digital banking services on mobile only. These services let you manage your finances with ease and convenience. You can access your accounts and carry out transactions anytime and from anywhere, which is crucial in today’s fast-paced business environment.

RAK Bank provides a business Digital Access Card (DAC) for those who need digital access but are eligible for a Business Debit Card. This card grants access to digital banking services and allows for non-financial transactions. It ensures that all business representatives can efficiently manage the company’s banking needs.

Screenshot Of RAK Bank Webpage

(source: https://www.rakbank.ae/en)

Business Accounts with RAK Bank

Types of Business Accounts Offered

The RAKstarter Account is an ideal solution for entrepreneurs embarking on new ventures. This zero-balance account is specifically designed to alleviate the burden of maintaining a minimum balance, which is particularly advantageous during the initial phase of business operations, where maintaining liquidity is crucial.

Features and Benefits of Each Account

The RAKstarter Account also comes with the perk of one complimentary chequebook annually, which can substantially save a startup. While the interest rates for this account align with those of the Business Current Account, it’s noteworthy that rates for other currencies such as GBP, CHF, EUR, and JPY differ, with some not accruing interest and others like JPY potentially having a negative interest rate. The bank commits to a 30-day notification period for any rate adjustments, ensuring you have ample time to strategise financially.

The bank’s suite of services goes beyond mere account management, offering comprehensive solutions that support and facilitate various business operations, including payment processing and payroll management. This holistic approach is designed to ensure secure and efficient financial management, which is essential for businesses aiming to succeed in Dubai’s dynamic market.

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Documents Required For Opening A Business Bank Account With Rak Bank

When preparing to establish a business bank account with Rak Bank, it’s essential to arrive with the necessary data and documentation. The bank’s specific prerequisites must be met to initiate your application.

You’ll be required to make an initial deposit, the amount of which is determined by Rak Bank. Additionally, maintaining a prescribed balance in your account is a stipulation set by the bank.

Rak Bank may request to review details of your financial history through previous bank statements. They also assess your business relationships by examining a clear customer profile.

For verification purposes, personal identification documents are needed. In the case of a company account, a representative may need to be present in the UAE. However, preliminary steps as information, such as completing an application form and document submission, can be initiated online.

Visiting a local branch can be beneficial for receiving guidance on selecting the most suitable account for your enterprise.

The required documents are categorised as basic and supporting. The former includes your MoA, passports, visas, Emirates IDs for all partners, and evidence of physical office space, such as an office tenancy contract or Ejari.

Supporting documents vary based on your business activities and may encompass six months of bank statements, utility bills for address verification, and a VAT certificate if applicable. Additional materials like a business model or company profile, an applicant profile, and a client list may also be requested.

To finalise the account setup, your company licence and Emirates ID are indispensable. The timeframe for completing this process can extend from several weeks to a few months, and adherence to the minimum balance requirement is mandatory.

Screenshot Of RakBank Business Rakstarter Account Webpage

(source: https://quickapply.rakbank.ae/business/accounts/rakstarter)

Financing Solutions for Businesses

Business Loans and Credit Facilities

Securing financial backing is a critical step for business growth or initiation. RAK Bank provides business loans with a ceiling of $817,000 (AED 3 million) for eligible enterprises. These loans come with flexible repayment options, with terms that can span up to 60 months, facilitating easier budgeting and financial management.

Understanding RAK Bank’s SME Financing

RAK Bank’s RAKvalue SME packages are customised to meet the unique requirements of SMEs. These packages include complimentary international remittances, which can significantly reduce the cost of international business transactions. The RAKvalue SME packages also offer Business Insurance, which encompasses workmen’s compensation and public liability, with coverage levels dependent on the selected package. For example, the RAKvalue SME Max package provides additional benefits such as property cover.

The inclusion of cloud-based accounting software in these packages aids in streamlining banking features, allowing for more efficient handling time of accounting tasks, payroll, and VAT compliance. The RAKvalue SME Max package further includes inventory management. It permits unlimited user access to the accounting platform, which is beneficial for expanding businesses that require adaptable solutions.

Eligibility and Application Process for Financing

Your business must satisfy RAK Bank’s eligibility criteria to access these financing options. The bank evaluates the financial stability and growth potential to ensure loan repayment capability.

The application process is designed to be clear-cut, with RAK Bank offering assistance throughout. Prospective borrowers should prepare all relevant documentation and financial statements to expedite the process. By fulfilling the eligibility requirements and completing the application, businesses can access the financial support and tools provided by RAK Bank to prosper in Dubai’s competitive marketplace.

Screenshot Of RAK Bank Business Elite Webpage

(source: https://www.rakbank.ae/en/business/everyday-banking/rakbank-for-you/business-elite)

Benefits Of Opening A Business Account with Rak Bank

Opening a business account with Rak Bank offers many advantages tailored to fit the diverse needs of modern businesses. This is particularly attractive for SMEs looking to boost their financial management without the burden of maintaining a high balance.

Rak Bank’s Business Elite membership offers exceptional privileges and cost savings for businesses looking to take their banking experience up a notch. Business Elite members receive priority services, preferential pricing on various products and services, and lifestyle benefits that extend beyond traditional banking offerings. The membership gives you access to a community of like-minded business owners, which acts as a network of support and resources to help your business thrive.

Business Elite account holders enjoy the personalised service of a dedicated Relationship Manager. They also benefit from preferential exchange rates, fast-track services, and dedicated Elite Counters for quicker banking transactions. The additional perks for Business Elite members are extensive and include access to golf courses worldwide, complimentary valet services, discounts on travel tickets, travel insurance coverage, and more. These benefits are crafted to enhance the lifestyle of business owners while providing the essential tools and services for their business’s financial health.

Partnering with RAK Bank for Business Success

RAK Bank stands as a solid pillar for enterprises seeking a strong financial foundation in Dubai’s vibrant economy. With our diverse array of business banking solutions, from the accessible RAKstarter Account to the prestigious Business Elite memberships, they cater to your every financial need.

RAK Bank’s dedicated Relationship Managers and our digital banking platforms ensure that your banking experience is seamless and supportive, leaving you free to focus on your business growth. Forge ahead with RAK Bank as your trusted financial ally, and experience the peace of mind that comes with knowing your business finances are in capable hands.

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