Do you have a business that’s trading internationally? Looking to go beyond your local market and tap other opportunities overseas? Having a multi-currency business account will help you enter the international scene!
The world has truly moved online, and almost all businesses of many sizes are already on the internet, thanks to e-commerce. When you operate internationally, you need to plan payments for buying and selling.
From foreign exchange (Forex or FX) volatility, supplier relations, and customer satisfaction, there are multiple challenges to consider, which is why you must consider a multi-currency business account.
Let’s check out the many benefits of having a multi-currency business account. Here are just a few.
- Manage foreign exchange
- Reduced transaction costs
- Efficient handling payments
- Greater processing speed
- Stronger supplier relations
- Better customer experience
Manage foreign exchange
Foreign exchange cost is a top consideration for businesses of any size. A multi-currency business account will help you manage forex volatility. You may lose money if you have just one account if the exchange rate isn’t favorable. A multi-currency account lets you pay and receive different types of currency that suit the current forex situation.
Since multi-currency accounts work like holding accounts, you can wait out the exchange rate volatility before converting from one currency into another. If you have sufficient funds, it’s possible to manage supplier payments through currency purchase at a good rate and store it for future use.
Reduced transaction costs
If you have separate accounts in other countries, each bank may charge for operating the account, and since the transaction chain is complicated and less transparent, hidden charges may happen. Additional fees may also be incurred as payments are processed through correspondent banks. One multi-currency account allows you to pay just one account fee, and it will let you hold all the currencies that match your customer and supplier bases.
Convenience and simplicity
Operational efficiency is the difference between success and failure when running a business. Payments are the lifeblood of your business. Therefore cash flow and control are critical – all the more so when you operate internationally.
Multi-currency account management is much easier since all you need is in one place. Monthly accounting is less demanding, and there’s no matching and reconciling invoices and receipts across currencies. There are also fewer adjustments for exchange rates. A business won’t have to juggle different accounts and banks. Everything is visible in one account to easily track your receipts and disbursements.
Speed is vital for cash flow. Cross-border payments are often slower than domestic payments, but is enabled to deal in local currencies will make your business more efficient because you’re accessing local payment networks. A multi-currency business account will let you have instant access to your account on the fly.
Stronger supplier relations
As local currencies will help your overseas customers, your overseas suppliers will appreciate it if you pay them using their currencies. You may also get better terms if you accommodate their needs.
Better customer experience
Happy customers mean repeat business. If a customer can’t pay using their preferred currencies, you may lose sales. It makes sense to have a payment system that meets local expectations. Being international means being versatile.
If you look to buy or sell overseas, a multi-currency business account can help you get a better footing. A multi-currency business account is integral to a business that deals internationally. You can learn more about online payments by visiting multi-currency business account providers.