Tiberiu Moisă, BT: As firms grow, capitalization becomes relevant, but not for very small businesses

Tiberiu Moisă, Deputy Managing Director MidCorporate & SME, BT, messages for entrepreneurs: 

What the bank account requirement changes for entrepreneurs

• It's possible to do without a bank account - at first glance it's a less complicated solution. Today you may be cash-only, but in time your customers will want something else.
• Even with an account, much of the work can still be done in cash.
• The account gives you access to a world of exciting options to explore - from tailored financing solutions to financial education.
• Many things that drive us forward initially appear as obligations we think we could do without.

If you're a very small business, it's possible to get by without a bank account - and, indeed, many entrepreneurs choose this route. At first glance, it seems like a less hassle, simpler accounting solution, most likely chosen by small subsistence family businesses. The question is: is it really better this way? What does obligatory bank accounts change?

Even with a bank account, much of the work can still be done in cash, just as before. The existence of the account does not limit flexibility, but instead gives access to a world of interesting options to explore. You may be cash-only today, but in time your customers will want something else. Having these options at your fingertips, being familiar with them, and taking advantage of what suits you - all of this can make all the difference. In recent years, banks have become increasingly attentive to the needs of small businesses. There are financial education programs, financing solutions tailored to any size of business. Why not keep up to date?

Many things that drive us forward initially appear as obligations we think we could do without. But in this case, you can keep your small-firm flexibility by working the way you do best, while still having a bank account to hand.

Minimum capital for LLCs increased to 8,000 lei 

• For very small firms, we support removing barriers to entry, promoting financial and digital inclusion, financial education and an environment that makes it easier to start a business.
• There are other ways to stimulate capital formation.

As for the minimum limit for share capital, with 8,000 lei, we cannot really talk about capitalization of a business, and there are other ways to stimulate capital formation. For very small firms, we support removing barriers to entry, promoting financial and digital inclusion, financial education and an environment that facilitates starting a business. As firms grow, capitalization becomes relevant and is undoubtedly an important discussion for Romania. But not for very small businesses.

How much can financial inclusion increase? What about banking? Depends on what you measure. 

• The bancarization of the economy and society will continue to increase.
• Intense competition in the banking sector has played a key role in increasing the affordability of financial services.
• Today, the bank is literally at your fingertips, in your pocket.

If we look strictly at access to basic financial services - such as all forms of payment - then surely the bancarization of the economy and society will continue to increase. Implicitly, financial inclusion will also advance as exposure to banking services has, over time, a positive impact on financial literacy and brings more options to the table for small firms. The more visible and numerous these businesses are, the more attention they attract. It's a positive spiral from which everyone benefits - even if, on the surface, a very small firm just wants to be left to operate at its own pace. In reality, we need each other.

Intense competition in the banking sector has played a key role in making financial services more accessible. Today, banking is literally at your fingertips, in your pocket: digital services such as mobile banking, internet banking or virtual wallets, together with the physical network of banking outlets, support increased banking, tailored to the diverse needs of customers. We expect that this degree of banking and financial inclusion will continue to grow naturally also in the coming years because among young people the take-up of digital services is already very high - a clear example being the success of BT Pay.