Businesses that handle many different currencies can benefit from the use of a multi-currency account to avoid paying excessive foreign exchange fees and to keep track of all of your currencies on one site.
Due to the current Covid-19 pandemic, the economic climate is constantly uncertain, which has increased the demand for a multi-currency business accounts as more businesses seek to protect themselves from exchange rate changes.
What is a multi-currency business account?
A multi-currency account functions similarly to a traditional bank account with certain additional benefits. Your account’s capabilities will vary based on where you open it, but you should anticipate being able to accomplish the following:
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- Money withdrawal
- Payments sent and received
- Checks or electronic transfers require access to your funds.
- Increasing the value of your account by earning interest (depending on the institution)
- Keeping track of your foreign currencies and exchange rates
Who are Multi-Currency business accounts most suitable for?
A multi-currency business account will help any business owner do business across borders and manage multiple currencies.
A multi-currency account, for example, is beneficial if:
- Your company does international business, whether it’s exporting, importing, or both. You’re an online vendor who sells on multiple platforms, such as Amazon.
- You run an e-commerce store that sells goods and services in a variety of currencies.
- You hire people from other countries or work with freelancers from other countries.
- You work with overseas clients on a regular basis as an independent contractor or freelancer.
What is a multi-currency IBAN account?
There are many types of multi-currency accounts available, but it doesn’t need to be complicated to select the best one for your business. A multi-currency IBAN account may be of interest to you if you would like to regularly trade in multiple currencies. This will essentially consolidate your various currency accounts so that you do not need to have several. In fact, a decent multi-currency IBAN will automatically place the incoming currency into the relevant account for you, all in one place.
We advise doing some further research about IBAN accounts if this sounds like a bank account that aligns with your business objectives. We found Monneo (an online bank) to be a useful resource as they regularly update their Insights section with guides on navigating high-risk banking and multi-currency transactions. To take things a step further, there are also what is known as “high risk” multi-currency accounts, these can be particularly useful for businesses that are categorised as high risk by regular banks. This could be everyday businesses such as travel agents, hotels, or even ticket booking services – as well as more obvious cases such as adult merchandise. These high-risk accounts come with features that prevent transactions from being blocked and your account from being frozen or charged, all the while handling multiple currencies.
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How to open a multi-currency business account?
If you meet your provider’s requirements, obtaining a multi-currency business account with a bank is relatively simple.
You may need to know the following information:
- Address for a business
- Information about yourself, including a current phone number
- Companies Number assigned to a residence
- Annual Turnover Estimate
It’s also worth noting that you can be asked to submit proof of your personal financial situation in order to prove that you have a clean banking and credit history.
Once all the required information is entered, the user is able to activate their account. Choose whatever currencies your business needs to activate first, and then fund your various accounts. This can be done by giving clients your international account information or by adding money to your various currency balances via bank transfers, credit card payments, and other methods.
To Conclude
Many businesses around the world work with innovative businesses that pay various partners in multiple currencies. With OpenPayd’s assistance, a multi-currency banking account can be a game-changer in terms of simplifying your financial transactions.