Current business account forCurrent business account for Peter Griffin Peter Griffin

Peggy DiekhoffPeggy DiekhoffJohannes Johannes EckelmannEckelmannJenny GriesbachJenny GriesbachJulia NaumannJulia Naumann

StructureStructure

characterization of a business accountcharacterization of a business account

-> especially for Peter´s business-> especially for Peter´s business credit line and overdraft facilitycredit line and overdraft facility access ways access ways

-> online- and telephone-banking-> online- and telephone-banking examination of identity and examination of identity and

creditworthinesscreditworthiness

-> differences to the English -> differences to the English systemsystem

Features and characterization of a current Features and characterization of a current business accountbusiness account

for business people, juristically people, for business people, juristically people, companies, societies, public companies, societies, public administrations and self-employedadministrations and self-employed

serve as payment transactionsserve as payment transactions

= kind of current account with the = kind of current account with the possibility to authorize others possibility to authorize others

strict separation of private account and strict separation of private account and business accountbusiness account

make bookkeeping easiermake bookkeeping easier

Peter´s business accountPeter´s business account

Basic charge per month 12.50 Basic charge per month 12.50 EUREUR

One card is for free, every One card is for free, every further card costs 12.50 EUR further card costs 12.50 EUR per annumper annum

He can use all ATMs and He can use all ATMs and statement printersstatement printers

Direct banking is inclusiveDirect banking is inclusive If a statement will be send to If a statement will be send to

him, there is a charge of 0.75 him, there is a charge of 0.75 EUREUR

Per remittance, standing order Per remittance, standing order and direct debit he has to pay a and direct debit he has to pay a charge of 15 cent extracharge of 15 cent extra

Peter Peter needs an needs an account account for his for his winetradiwinetrading ng business. business.

Credit line and overdraft facilitiesCredit line and overdraft facilities

a credit line is any credit source extended to a business a credit line is any credit source extended to a business by a bank or financial institution by a bank or financial institution

There can be some forms: There can be some forms: Cash creditCash credit OverdraftOverdraft Demand loanDemand loan Export packing creditExport packing credit Term loanTerm loan Discounting or purchase of commercial bills, Discounting or purchase of commercial bills,

…… A credit line is a solution, which is allowed by banks A credit line is a solution, which is allowed by banks

and financial institutions, for customers to be liquid in and financial institutions, for customers to be liquid in hard times.hard times.

The line of credit is the maximum credit that a The line of credit is the maximum credit that a costumer is allowed.costumer is allowed.

Overdraft facilityOverdraft facility

Two forms of overdraft facilities:Two forms of overdraft facilities: Overdraft facility for business customers:Overdraft facility for business customers:

An overdraft facility is limited on a current accountAn overdraft facility is limited on a current accountgranted by a financial institution to have a liquiditygranted by a financial institution to have a liquidityreserve with the possibility to repay it at every time.reserve with the possibility to repay it at every time.

Overdraft facility for private customers:Overdraft facility for private customers:Since 1968 there is the possibility for private customersSince 1968 there is the possibility for private customersto overdraw their current account for solvency into overdraw their current account for solvency inGermany. A loan facility on a customers account at aGermany. A loan facility on a customers account at afinancial institution allowing the customer to overdrawfinancial institution allowing the customer to overdrawup to a certain agreed limit for an agreed period.up to a certain agreed limit for an agreed period.

Access ways – Online- and telephone-Access ways – Online- and telephone-bankingbanking

Online- banking:Online- banking: You can log in with your current account number and You can log in with your current account number and

your PIN (personal identity number) from any computer your PIN (personal identity number) from any computer with internet.with internet.

while logging in, you can do cash remittances, you can while logging in, you can do cash remittances, you can check the stand of money, standing order….check the stand of money, standing order….

Telephone-banking:Telephone-banking: You can call the telephone banking line from You can call the telephone banking line from

everywhereeverywhere Registration: your account number and your telephone Registration: your account number and your telephone

banking PINbanking PIN With telephone-banking you can also do cash With telephone-banking you can also do cash

remittances... remittances... For this, you need a mobilphone and your contact datesFor this, you need a mobilphone and your contact dates

For opening a business account, the For opening a business account, the bank needs some papers:bank needs some papers:

operating operating agreement agreement (Gesellschaftsvertr(Gesellschaftsvertrag) → where rights ag) → where rights and duties for and duties for companies are fixedcompanies are fixed

to stand to stand surety surety (Bürgschaft (Bürgschaft übernehmen)übernehmen)

current company registry current company registry (Handelsregister) → (Handelsregister) → information about information about company, place of company, place of business, branches, business, branches, companies capital, …companies capital, …

official paper of official paper of identity (valid identity (valid identity card or identity card or passport) from the passport) from the firm owner or from firm owner or from the person, who the person, who open the account open the account by order of the firmby order of the firm

No Schufa No Schufa inquiryinquiry

Examination of identity and Examination of identity and creditworthinesscreditworthiness

Identity:Identity: Necessary are the basics of Necessary are the basics of

the company registry, the company registry, operating agreement, of operating agreement, of corporate personscorporate persons

Identification card of the Identification card of the legitimating person legitimating person

Creditworthiness:Creditworthiness:- is only examined, if there is an inquiry of a loan- is only examined, if there is an inquiry of a loan- in order to grant a loan, the bank needs the last 3 - in order to grant a loan, the bank needs the last 3 annual financial statementsannual financial statements- creditworthiness is not examined during opening an - creditworthiness is not examined during opening an account for a companyaccount for a company

The differences to the English systemThe differences to the English system

Identity:Identity:

- like in Germany: name and birthday, as well as identification - like in Germany: name and birthday, as well as identification numbers (in the U.S. this is most likely your Social Security numbers (in the U.S. this is most likely your Social Security Number). Number).

- You may also need to provide a government ID or Driver’s License - You may also need to provide a government ID or Driver’s License number. number.

Creditworthiness, no differences to the German system:Creditworthiness, no differences to the German system:

- The bank pays attention on:- The bank pays attention on:- fixed monthly income;- fixed monthly income;- monthly maintenance costs - the costs incurred on a monthly - monthly maintenance costs - the costs incurred on a monthly basis to ensure normal operation (rent, electricity, water, basis to ensure normal operation (rent, electricity, water, telephone, etc.). telephone, etc.).

- the creditworthiness may be influenced by also other factors, - the creditworthiness may be influenced by also other factors, such as residence, place of work, property ownership, number of such as residence, place of work, property ownership, number of persons in the household, etc. persons in the household, etc.

Now we wish Peter Griffin a good Now we wish Peter Griffin a good start for opening a current account start for opening a current account

for his winetrading business!for his winetrading business!