Regardless of where you are in the world, we’re more connected than ever in this digital age. Companies are continually looking for global markets to dive into and are outsourcing entire departments offshore. As globalisation continues to shape the future of business, the need for owners to hold multi-currency accounts has never been stronger.
Whether you’re already trading overseas, or want to move beyond your home market so you can take advantage of overseas opportunities, multi-currency business accounts allow you to receive, pay, and hold multiple currencies. Here are just some key benefits you’ll gain from using one and how it can positively impact your business.
Lower Transaction Costs
In the past, companies would have to open several accounts for different currencies and countries. Each of these banks would charge account maintenance fees which could quickly add up. Foreign banks also require hefty minimum balances for you to open accounts. There were other charges you may have had to pay too, particularly for any foreign wire transfers.
One of the great things about a multi-currency account is having one can help you avoid these extra charges. Instead, all you need to shell out on is a nominal single account fee. Check out Silverbird who can help you set up a UK multi-currency account. They are an electronic money institution that offers cross-border payments that anyone can participate in.
Faster Transactions
When it comes to managing the financial side of things in your business, you’ll want transfers and payments to be done in a quick fashion. If you have a multi-currency account, this allows you to not only transact in different currencies, but you won’t have to wait for currency conversion either.
This can help speed up transactions, as well as reduce the time it takes to send and receive payments. While cross-border payments are normally slower than domestic payments, if you deal in local currencies, transactions will be more efficient and quicker as you’re accessing local payment networks.
Better Customer Experience
If there is one thing you need to focus on in business, it’s your customers. Providing a great customer experience is vital for keeping your audience on board. When your customers are satisfied with your payment method, you are more likely to get repeat business. Should prospective customers be unable to pay in their preferred currencies, you run the risk of losing sales which can be devastating for your business in the long term.
With that said, it’s essential to have an online payment acceptance system in place which combines currencies. If you are trading in Europe, make sure to deal in euros. For those who wish to pay in dollars, make sure you accept them as their preferred payment method.
Expense Management
A multi-currency account is also incredibly useful in making expense management a whole lot easier for your finance team. These accounts cancel the need to match paid and invoiced amounts in different currencies. Accounting adjustments needed to accommodate exchange rate differences become a whole lot easier too.
Because such accounts function in a similar manner to holding accounts, you’re able to wait things out until exchange rates are favourable enough for you to convert currencies. In a nutshell, multi-currency accounts provide you with a simple platform to conduct all forex transactions. This means all transactions are logged in one structured place where your finance staff can manage expenses.
Convenience for Suppliers
Just like your customers who would like to pay using their preferred currency, you’ll find your suppliers want the same experience too. Having a multi-currency account enables you to adapt to your suppliers, clients, and partners. Understandably, this can only be a good thing for your business, especially when it comes to creating and maintaining robust relationships, as well as more custom for you!
Because suppliers won’t have to pay or wait for currency conversion, they’re more likely to give you better terms on your deals with them. One of the hardest challenges in business is obtaining suppliers and keeping them on board, so making the payment process as straightforward and seamless as possible is key. You’ll find having a multi-currency account is convenient for you too. Because you’ll find it easier to manage payments, this could help reduce stress levels, not to mention boost how much money you’ll make!
It goes without saying, businesses that want to expand into new territories, grab more customers, and bring more clients on board can’t go wrong by using a multi-currency account. If you’re operating in multiple countries and currencies, having a multi-currency account is a no-brainer.
Should you choose to have a multi-currency account, you will have the freedom and ability to streamline your operation, lower costs, and of course, expand your reach. All of these go a long way in improving your bottom line and keeping your business on top.
