3 Address Mistakes to Avoid When Opening a Business Bank Account

We all know that sinking feeling when the bank informs you that the proof of address you provided does not reach the acceptable level. Typically, opening a bank account is a simple procedure. As long as you remember to provide the appropriate papers, the full application can be processed in a single day. It starts with a piece of official identification and ends with address verification to prove your residence.

Depending on the nation you reside in and the bank you are opening an account with, there are many acceptable forms of documentation you can provide as proof of residence. Obtaining the incorrect paperwork for your application may cause a delay in opening your account. Here are some mistakes to avoid while getting your proof of address for your business bank account.

What Do You Need to Create a Business Bank Account?

Typically, you can open a business bank account entirely digitally online or using a mobile device. As an alternative, company owners can contact or go to a branch to open an account.

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Depending on how you created the legal framework of your company, you could require any or all of the following:

• Your company’s address and phone number
• Whose name(s) will be used to identify the account owners
• Identification documents such as your driver’s license
• Documents proving the company’s legitimacy. Qualifying documents include the business’s federal tax identification number also called an employer identification number and if you are a sole proprietor, your Social Security number
• The minimum deposit amount required by the bank Documents from a state or municipal body proving the formation of a legal organization, such as a Private Limited Company (PLC).

However not that your account faces a risk of being closed down if you are not financing it.

Why Exactly Does the Bank Want Your Address?

A document that certifies your identity and present residence is known as proof of address. As implied by the name, it displays your current residence. For security purposes, most banks demand proof of their clients’ residency and identification. This implies that before granting consumers access to a business bank account, they need to provide identification. Typically, this procedure requires presenting a legitimate photo ID and evidence of address.

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They have a responsibility to reduce the possibility of account users engaging in criminal activity. Fraud, money laundering, or sponsoring crime are some of them. Making ensuring that accounts are not established using fraudulent names is one method they do. It’s crucial that each account may be linked to and associated with a certain person.

What Are the Address Major Mistakes You Are Likely to Make?

1. Using Inappropriate Documents when Getting Your Address

You can use several documents to act as evidence of address. However, not all of them are adequate to confirm that the address is yours. Below are some of the documents that are not acceptable as address proof for your business account:

• Transfer documents
• Pension statement
• Bank References
• Insurance industry records
• correspondence from the government that are more than three months old.
• Older than three months’ bank statements
• Older than three-month energy bills relating to the property
• Verifying clients’ addresses properly may aid organizations in better understanding their customer base in addition to guaranteeing compliance with legal requirements and preventing fraud.

Businesses may discover new development possibilities, customize their goods and services to match the unique demands of various locations and enhance their overall customer experience by gathering and analyzing data about the location of their clients. As a result, even though gathering and checking proof of address documentation may seem tedious, doing so may eventually increase business performance and customer happiness.

2. Not Using Your Residential Address as Verification Address

It is important to identify criminal actors, avoid fraud, and confirm that you are dealing with people who reside in your target locations. However, you can achieve this by identity verification and proof of address checks of your clients. Some banks must have them in order to comply with regulations. But, you have a choice in the method you choose to check someone’s address.

For businesses that seek a flawless onboarding process, sending postcards with verification numbers or demanding in-person inspections can be expensive and time-consuming. Online techniques for proving your address such as Proof of address.com are frequently a lot quicker in general, but you should still personalize the approach to meet your needs and objectives.

It is important to identify criminal actors, avoid fraud, and confirm that you are dealing with people who reside in your target locations. However, you can achieve this by identity verification and proof of address checks of your clients. Some banks must have them in order to comply with regulations. But, you have a choice in the method you choose to check someone’s address.

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3. No Bills with Your Name Are Coming to Your Residential Address.

Don’t panic if you find yourself in this position; you may still get other documents that will serve the same purpose. We advise locating your lease agreement or a current insurance policy that was recently taken out in your name. Adding your name to a phone bill is another option. To sign up for a basic phone plan, go to your nearby provider. Make sure the contract is registered at the right address. Within a month of registering the plan, the service provider will send you a bill or service contract that includes your full name and address.

Bottom Line

However, gathering and confirming evidence of proof of address can be difficult because it is quite simple to forge papers or give transitory or incorrect locations. Banks may demand various types of paperwork in order to address this problem. They may also utilize cutting-edge verification technology to validate papers and guarantee their accuracy.

Additionally, a lot of businesses have put strong data privacy and security rules in place to safeguard their clients’ personal information. This involves using encryption and other security measures to stop unwanted access and theft, as well as the safe handling and storage of proof of address paperwork.

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