Procedure For Opening a Business Account With Capitec: Fees and Documents You’ll Need

Personal accounts are not the only type of account you can open with Capitec bank. You can also open a business account. Although Capitec bank does not offer business accounts at the time of this post, the bank is working on business banking. This is why they recently acquired Mercantile bank. Capitec bank is working towards making the Mercantile bank its business bank. So, if you want to open a business account with Capitec, you should consider opening an account with Mercantile bank. In this post, you will learn how to open a business account and the requirements.

Capitec Bank is Moving into Business Banking

After being declared the best bank in the world by the Lafferty Group and the second-largest retail bank in South Africa, Capitec bank is now heading toward making a name for herself in business banking. On October 9, 2019, Capitec bank announced that their acquisition and purchase of Mercantile bank had been formally approved by the South African Minister of Finance and other relevant regulatory bodies. What that meant was that Capitec bank was now ready for business banking.

Although Capitec bank does not offer business accounts, they are working towards making Mercantile bank a household name when it comes to business banking. Capitec bank does not offer business accounts at this stage does not mean that you cannot open a business account with them. Since they are now the legal owners of Mercantile bank South Africa, you can also open a Mercantile business account.

Knowing how well Capitec bank has done in retail banking, there is no doubt that they will make a name for themselves in business banking.

A Business Account Differs From a Personal Account With Capitec Bank

Capitec Bank Codes
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Capitec bank is well known for its unique customer service and top-class security precautions in retail banking. Transactions with your Capitec account are secured such that your account number or details are not required to send money to you. Even when you transfer to others, they don’t get to see your account details.

As secured as retail banking with Capitec bank is, a business account with Capitec bank is completely different from a personal account. Since you can use your personal account for business, it is not professional and does not function as a business account.

Capitec business banking is aimed at helping manufacturing, wholesale, retail, and transport businesses. They provide loans for businesses and investment advice, unlike personal banking. With Capitec business banking, you enjoy the following services:

  • Merchant acquiring: The bank acts as a liaison between your business and other merchants and helps you settle any financial dispute between you and other merchants, accepts credit card payments, and provides you with relevant information.
  • Payment services: The bank accepts electronic payments via any means of payment, such as credit cards and bank transfers.
  • Insurance: In the words of Capitec bank, they intend to do business banking the Capitec bank way, this involves insurance. They have good insurance policies for business owners to help them recover losses.
  • Investment product and services: Capitec business banking will also provide investment products such as stocks and bonds.
  • Loans: As long as you prove that you have what it takes to pay back, Capitec business banking also provides loans for businesses.
  • Commercial transactions: Capitec business banking also provides business owners the opportunity of handling their transactions with other business owners with whom they do business.

Whether you own a small or big business, rather than using your personal Capitec account, perhaps you should consider opening a Mercantile bank account to enjoy the benefits of Capitec business banking. 

How to Open a Business Account With Capitec 

You can start the process of opening a Capitec business account online with your cell phone. After speaking with a Mercantile business banker online, you will then visit the bank with the required documents. Here is how to go about opening a Mercantile business account online:

  • Send ‘GROW’ to 32470.
  • Visit the official website of Capitec bank.
  • Tap on the menu bar at the top right corner of the home page.
  • Please scroll down to business services and tap on it.
  • Tap on any of the ‘learn more’ buttons.
  • Tap on the ‘I’m interested’ button below the page.
  • Fill the form.
  • Click on the ‘Yes I’m in’ button below.

Business Account With CapitecCurrently, it is not possible to convert your personal Capitec account to a business account. This is because Capitec bank does not offer business accounts at this stage. So, if you already have a personal account, you will have to follow the procedure above to open a Mercantile business account.

Requirements For Opening a Business Account

While opening an account with any bank, including Capitec, there are certain requirements you must meet up with. While opening a personal account, all you need is an identification document, but that will not be enough for opening a business account with Capitec. Documents you will need for opening a business account include:

Sole Proprietors

  • Identity document.
  • Trade references (two).
  • Tax number.
  • Proof of business address.

Corporate Companies

  • Founding statement.
  • Certificate of incorporation.
  • Identification document for all members.
  • Trade references (two).
  • Proof of business address.

Note: Even though you can start opening the business account online, you will have to visit the bank (Mercantile bank) to submit these documents.

Opening a Business Account With Capitec is Free

Just like a personal account, opening a business account with Capitec is also free. In the case of a personal account, even though opening the account is free, you will have to deposit at least R25 into the account to activate the account. Similarly, opening a business account is free, but you will have to transfer some money into it to activate the account.

To activate your business account with Capitec, you will have to make an initial deposit of up to R770. This is quite bigger than what it costs to open a personal account. This money used for activating the account remains for the account owner but cannot be withdrawn except the account is being closed.

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Romeo Ndlovu
Romeo's secret talent is taking the ordinary and making it extraordinary content. At work, he is thinking about how best to provide the most unique, original content that provides utmost satisfaction to the user. Away from work, he is a football addict who loves to catch up on his favorite pastimes
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