The use of current account in business is convenient because
Answer Details
The use of a current account in business is convenient because it allows for withdrawals to be made at any time, without the need for prior notice. This provides businesses with the flexibility to access their funds as and when they need them, which is particularly important for day-to-day operations and managing cash flow.
In addition, current accounts typically do not earn higher interest rates on deposits compared to other types of accounts, such as savings accounts. However, they do offer the convenience of being able to make deposits and withdrawals easily, which can help businesses to keep track of their finances more effectively.
Finally, while loans may be available through a current account, this is not a guaranteed feature and will depend on the specific terms and conditions of the account. It is important to note that any loans taken out through a current account will likely come with interest and fees, which should be carefully considered before deciding to borrow money in this way.
Overall, the main advantage of a current account for businesses is its flexibility and convenience in managing day-to-day financial transactions.