Entrepreneurs offering products or services internationally need a foreign currency business account that allows them to access and receive payments from international customers without stress or hassle.
We will look at why a foreign currency business account is essential and an introduction to how and where to open one.
Foreign currency business account in a nutshell
Also known as borderless accounts, borders or laws do not restrict business accounts in foreign currency. With a foreign account, a company can quickly receive, send and hold money in various currencies. A foreign currency account with a bank can be a luxury for many consumers and businesses as it can be expensive and not everyone is eligible.
How much does a foreign currency business account cost?
The high cost of a foreign currency account stems from the international transactions sent and received by a company and the currency conversions when you perform them. Bank exchange rates and international transfer fees are different and can fluctuate. An international wire transfer can cost about 3% – 6% in fees and receipt fees from the recipient’s bank.
However, a good banking partner offering a foreign currency business account can offer you the best available rates plus all the features of a foreign currency account.
Reasons why you need a foreign currency business account
A foreign currency account can be used for personal or business needs. For conventional users, having a foreign currency account comes in handy while traveling as it can help them get money in the local currency of the country they are in. It is also useful for purchases and payment of subscriptions in other currencies.
Nevertheless, a foreign currency account is beneficial for business as payments and receivables are possible in different currencies. This includes payments from foreign suppliers and suppliers and receiving payments. Businesses can bill their customers in their local currency using a foreign currency account, which offers customers convenience and leads to more sales. The account also avoids opening local bank accounts in other countries as the available currencies can be managed directly in one bank account.
It also minimized currency risk as one can easily convert between currencies to protect your money. To take full advantage of this benefit, a business needs to choose the right provider that will convert your money at a reasonable price, eliminating the need to pay for exchange rate surcharges and hidden fees.
How does a foreign currency business account work
This type of bank account allows a business to benefit from streamlined transactions, leading to a faster business process. Currency exchange is as easy as possible; However, keep in mind that not every currency is allowed in a foreign currency account. Contact your chosen provider for more information.
Open a foreign currency business account
Opening a foreign account is similar to a bank account; the bank needs your details, financial information, government issued ID or international passport. Processing can be done online or directly in a bank branch. Some banks require you to be physically present, while others operate entirely online.