The world has moved online and businesses of all sizes are now reaching global markets through e-commerce. For international operations, you need to consider payments for buying and selling.
If your business is already trading internationally, you may be looking to relocate your home market into international opportunities. If you recently stumbled upon a multi-currency business account while checking out how to start an online business in Singapore, then this article will help.
Like your multi-currency account, you need to consider transaction costs, FX volatility, supplier relations, and customer interaction. Figuring out the former will help your business tremendously.
Multi-currency business account in a nutshell. A multi-currency business account allows you to handle multiple currencies when buying and selling outside your domestic market. With it, you can hold dollars, euros, and pounds using a single account. Accounts that can only handle one currency may suffer from profits and business performance issues due to high fees and transaction complexities.
Signing up for a multi-currency business account is straightforward. You can even set up an account online. This means you won’t need to deal directly with a bank.
Here are a couple of benefits when you start using a multi-currency account to support your business.
Reduced transaction costs. Using separate accounts in different countries can be very expensive as each bank can charge operational fees, and since the transaction chain is complex, hidden charges are a possibility. Having a single multi-currency account allows you to possess all the currencies appropriate for your customer and supplier bases – and you are paid with just one account fee.
Foreign exchange management. Foreign exchange or FX is another consideration. A multi-currency business account will let you manage forex volatility. If you have just one account, you may lose money if the exchange rate is not in your favor. If you have European customers, they can pay into your account with a multi-currency account since it accepts euros. Similarly, you can pay any suppliers in euros.
Since a multi-currency account works like a holding account, you’ll be able to wait until you have a good exchange rate before converting from one currency into another.
Simplicity and convenience. As a business owner, you know that operational efficiency is often the difference between success or utter failure. Payment is the lifeblood of any business, so cashflow is critical. These are critical reasons to own a multi-currency business account if you operate internationally.
The administration is much easier with a multi-currency account since everything is in one place and streamlined. Monthly accounting becomes less demanding, without matching and reconciling invoices and receipts across multiple currencies. Also, there are fewer adjustments for exchange rate differences. You also won’t have to juggle different accounts and different banks across different jurisdictions. Everything is easily visible in one account, so tracking receipts and disbursements are a piece of cake.
End Note
If you’re looking to start an online business in Singapore or just starting to learn how to buy and sell overseas – a multi-currency account will easily put your business on the right track. Signing up for a multi-currency account is part of building the right online payment strategy for your business. To find out more about online payments and multi-currency business accounts, check out the top business account provider in your area.