Lessons from My Real Business Experience
When you start a business, every decision matters — especially financial ones. One question I’m often asked is:
“Why do you use a digital bank instead of a traditional, well-known bank?”
The answer is simple: experience has taught me what works and what doesn’t for start-ups.
My Experience with Traditional Banks
When I opened my first business accounts with traditional branch banks, my business was still at an early stage. Income was inconsistent, and profits were either very small or non-existent. Despite this reality, the bank charged a monthly maintenance fee of around R80 or more, regardless of whether the business made money that month.
Each month, I found myself depositing money just to:
Keep the bank account active
Cover bank charges
Pay basic business expenses
Sometimes even pay myself a small salary just to keep operations going
As any start-up owner knows, this is not sustainable.
Eventually, the pressure became too much. The account was closed, and I began receiving communication that the outstanding bank charges had been escalated to lawyers. This was emotionally and financially draining — especially because the “debt” was not due to overspending, but simply fees charged while the business was struggling to survive.
The Reality of Starting a Business
Most businesses do not become profitable immediately. The early stages are about testing, learning, adjusting, and growing. Unfortunately, traditional banks often operate on a one-size-fits-all model that assumes stable income from day one.
For start-ups, this creates unnecessary pressure and risk.
Why Digital Banks Are a Better Fit for Start-Ups
After my experience, I made a conscious shift to digital banking — and the difference was clear.
Digital banks typically:
Do not charge monthly account fees
Charge only for transactions, often at very low rates
Offer transparent pricing with no hidden costs
Are more forgiving and flexible for small or growing businesses
Reduce the risk of accumulating debt from bank charges alone
This model allows business owners to focus on what truly matters: growing the business, not just maintaining a bank account.
Protecting Cash Flow in the Early Stages
Cash flow is the lifeblood of any business, especially in the beginning. Fixed monthly bank charges eat into limited resources and can quickly become a silent business killer.
With digital banks, if the business is quiet for a month, you’re not punished for it. You only pay when you transact — which makes financial sense.
Traditional Banks Still Have Their Place
This does not mean traditional banks are bad. For established businesses with steady income, higher transaction volumes, and access to credit facilities, branch banks can offer valuable services.
However, they are not always the best starting point.
Choosing a digital bank is not about convenience or trendiness — it’s about financial survival and sustainability. My preference is rooted in lived experience, hard lessons, and a deep understanding of how fragile the early stages of business can be.
If you are starting a business or operating on a tight budget, consider a banking solution that grows with you — not one that drains you before you’ve even found your feet.
Sometimes, the smartest business decision is the one that reduces pressure, not prestige.
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