Did you know the type of bank account you use for your business impacts your chances of being approved for an SME loan with a formal lender!
Lenders are more likely to lend to businesses that use current accounts for their business transactions because they consider them “pure” business accounts.
When you apply for an SME loan, lenders ask you to submit your past bank statements. If you submit savings account statements, it is difficult for lenders to distinguish between your individual expenses and your business expenses.
So, barring exceptional cases, lenders tend to favour businesses that use a current account when making their lending decisions.
A current account also offers more features when compared to a savings account, and these features are beneficial for SMEs that do many transactions every month.
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