Current business account for Peter Griffin Peggy Diekhoff Johannes Eckelmann Jenny Griesbach Julia Naumann

Structure  characterization of a business account -> especially for Peter´s business -> especially for Peter´s business  credit line and overdraft facility  access ways -> online- and telephone-banking -> online- and telephone-banking  examination of identity and creditworthiness -> differences to the English system -> differences to the English system

Features and characterization of a current business account  for business people, juristically people, companies, societies, public administrations and self-employed  serve as payment transactions = kind of current account with the possibility to authorize others = kind of current account with the possibility to authorize others  strict separation of private account and business account  make bookkeeping easier  make bookkeeping easier

Peter´s business account  Basic charge per month EUR  One card is for free, every further card costs EUR per annum  He can use all ATMs and statement printers  Direct banking is inclusive  If a statement will be send to him, there is a charge of 0.75 EUR  Per remittance, standing order and direct debit he has to pay a charge of 15 cent extra Peter needs an account for his winetrading business.

Credit line and overdraft facilities  a credit line is any credit source extended to a business by a bank or financial institution  There can be some forms:  Cash credit  Overdraft  Demand loan  Export packing credit  Term loan  Discounting or purchase of commercial bills, …  A credit line is a solution, which is allowed by banks and financial institutions, for customers to be liquid in hard times.  The line of credit is the maximum credit that a costumer is allowed.

Overdraft facility  Two forms of overdraft facilities:  Overdraft facility for business customers: An overdraft facility is limited on a current account granted by a financial institution to have a liquidity reserve with the possibility to repay it at every time.  Overdraft facility for private customers: Since 1968 there is the possibility for private customers to overdraw their current account for solvency in Germany. A loan facility on a customers account at a financial institution allowing the customer to overdraw up to a certain agreed limit for an agreed period.

Access ways – Online- and telephone- banking Online- banking:  You can log in with your current account number and your PIN (personal identity number) from any computer with internet.  while logging in, you can do cash remittances, you can check the stand of money, standing order…. Telephone-banking:  You can call the telephone banking line from everywhere  Registration: your account number and your telephone banking PIN  With telephone-banking you can also do cash remittances...  For this, you need a mobilphone and your contact dates

For opening a business account, the bank needs some papers: operating agreement (Gesellschaftsvertrag) → where rights and duties for companies are fixed to stand surety (Bürgschaft übernehmen) current company registry (Handelsregister) → information about company, place of business, branches, companies capital, … official paper of identity (valid identity card or passport) from the firm owner or from the person, who open the account by order of the firm No Schufa inquiry

Examination of identity and creditworthiness Identity:  Necessary are the basics of the company registry, operating agreement, of corporate persons  Identification card of the legitimating person Creditworthiness: - is only examined, if there is an inquiry of a loan - in order to grant a loan, the bank needs the last 3 annual financial statements - creditworthiness is not examined during opening an account for a company

The differences to the English system  Identity: - like in Germany: name and birthday, as well as identification numbers (in the U.S. this is most likely your Social Security Number). - You may also need to provide a government ID or Driver’s License number.  Creditworthiness, no differences to the German system: - The bank pays attention on: - fixed monthly income; - monthly maintenance costs - the costs incurred on a monthly basis to ensure normal operation (rent, electricity, water, telephone, etc.). - the creditworthiness may be influenced by also other factors, such as residence, place of work, property ownership, number of persons in the household, etc.

Now we wish Peter Griffin a good start for opening a current account for his winetrading business!