The best multicurrency account, do you already have it? If your business is transacting different currencies opening multiple currency accounts is a smart move at the moment. With the surfacing issues about Brexit and Trump, having a multicurrency account will help you avoid paying for excess foreign exchange fees and it will also aid you in managing your business different currencies in one place.
Having an instant multi-currency account is highly recommended right now! Uncertainty issues within the economic climate are becoming a warning especially to those that are offering Dollars and Euros. If you want to protect your business from this kind of issue and from exchange rate fluctuations having the best multicurrency account is probably the best decision you’ll ever make in your business career.
To learn more about a multicurrency account with IBAN, this article will be your guide on everything you need to know.
What is a multicurrency business bank account?
If you are a newbie in the business industry you should know that an instant multi-currency account can hold multiple currencies within a single account. This only means that you can hold different currencies like Dollars, Euros and Pounds in a single bank account where you can deposit and withdraw money in each said currencies. Now managing multiple currencies is now possible and much easier as it only requires one account to deal with.
Not only will that, having an instant multi-currency account can save you a lot of money. Having multiple currency accounts in different countries will require a huge investment for you are required to pay monthly fees in order to keep your account open or need to have minimum deposits for your accounts abroad.
The best part of having a multicurrency account is that you do not need to remember numerous account details and login information.
Who is suitable for having a multicurrency account?
Do you think you are suitable for having a multicurrency account? Well, any kind or type of business having transactions across borders and are managing multiple currencies will greatly enjoy the benefits of having an instant multicurrency account for their business. Imagine, you can get paid in one currency and you can pay your suppliers or your employees using another currency. It makes your life easier which suits does with IBAN account for Forex merchants and IBAN account for CBD merchants.
Having a multicurrency account is also useful in the following instances:
- If you are an online seller and you are selling on numerous marketplaces including Amazon.
- If your business is trading internationally, it could be importing; exporting or you are doing both.
- If you are operating an e-commerce account and you are selling goods and services using multiple currencies.
- If you are employing your staff from foreign countries or is working with freelancers in different countries.
- If you are working independently or as a freelancer that works under international clients on a regular basis.
How does the multicurrency business account work?
It’s working similar with a standard checking account, the instant multi-currency account is a demand deposit account that will actually allow you to draw out payments or receive payments as you need it for your business.
You can access your funds in a multicurrency account by using your debit card, wire transfer, electronic payments and even through cheque. You should know that you will be receiving different rates of interest depending on the common currency you are holding.
Aside from that, you should probably know that a multicurrency account is also similar in having a business bank account. You’ll be entitled to fees that are associated with your business transactions. This could be a monthly account fee, charge for depositing or withdrawing payment transactions using currencies that are above a certain value.
What is IBAN?
According to Investopedia.com an IBAN short for International Bank Account Number is actually a standard international numbering system that is developed in order to identify a foreign bank account. IBAN is identified with a number that starts with two-digit country codes, then two numbers and is followed by three to five alphanumeric characters. Although it is said to be an account number it cannot replace a bank’s own account number because it is only created to provide further information that is highly useful in identifying overseas payments.
Opening a multicurrency account
When it comes to opening your very own multicurrency account, different providers actually have dissimilar requirements when it comes to opening this kind of account, especially in a UK bank.
Unlike in other major countries, UK banks are asking their clients to provide few documents in order to prove their identity and address. They said that they are doing it to comply with the FCA guidelines and to ensure that their clients’ accounts is not being open using false names or is being used for illegal purposes.
As clients wanting to have your multicurrency accounts with IBAN, you’ll have to provide proof of your identity; you could use a passport or a driving license and proof of your address. This can come in the form of a utility bill, a simple letter from an official agency like HMRC which can identify your full name and residential address.
You can open an instant multicurrency account online with well-known banks but other banks will need you to make a visit in order to show the original copies of your papers. Although any business that is suitable for having a multicurrency account can apply, it’s still a common practice that they are allowing their existing clients to open this kind of account. This only means that you might want to have or even open an account in your chosen bank so that they can endorse you with an instant multicurrency account.
How do IBAN works?
Instant IBAN used very precise letters, numbers and alphanumeric characters and these characters are also known as the BBAN or the Basic Bank Account Number. Each banking association will be choosing their BBAN as the standard for their countries bank account. In general, only the European banks are using IBAN but that was before, now, the practice of using IBAN is becoming more popular in other countries such as UAE.
In most common cases, IBA numbers are commonly used in sending interbank transfers or wiring money from one certain bank to another which are across the international borders. Here is a peek of the countries currently using the IBAN system:
- Albania: AL35202111090000000001234567
- Cyprus: CY21002001950000357001234567
- Kuwait: KW81CBKU0000000000001234560101
- Luxembourg: LU120010001234567891
- Norway: NO8330001234567
Fact: Amongst all the major countries, the US and Canada do not use the IBAN system, but, they still do recognize it and still process payments abiding by the system.
Advantages and Disadvantages of using multi currency business bank account
- Like it was stated above having this kind of account allows you to swiftly manage your multiple currencies just by using one account wherever you are in the globe.
- Multicurrency bank account helps you in saving money in the exchange rate whenever you are transacting using different currencies and if you are sending it to a recipient who is using the same banking partner.
- This can aid as you try to manage or go through exchange rate risks as you hold multiple currencies until the rates are favorable in your part.
- This is actually a simple and smart solution if you are trading your goods or services overseas, if you have a foreign staff or if you are regularly working with international clients.
- This kind of business bank account allows you to enjoy safe, secure and global access to your money with just a click away.
- It does not cover benefits to businesses that are not moving their money from one to country or currencies.
- You might find yourself facing substantial bank fees for transfers and monthly account fees.
- There is a chance that the account might not offer all the major currencies your business need during the transaction.
- The offered exchange rate might not match well with the best rate that is available at any given time of the day.
- There is a huge chance that you’ll be required to provide an overseas address or local address as you receive and make payments in your business.
Do Business minus the Borders
Just by reading this article, I hope that you gain further knowledge when it comes to instant multicurrency accounts, how it really works, which is suitable for using this account, identify what is instant IBAN which is a huge topic now in the business realm.
With a multicurrency accounts with IBAN, businesses will no longer have to worry with regards to their foreign transactions especially if they are someone like you who are handling multiple currencies. With these together, the transaction fees will be a lot cheaper and your clients from across the globe will also enjoy the experience you are providing as you are giving them the convenience they are always seeking for in a business provider like you.
So what are you waiting for? What’s stopping you from emerging to this borderless payment transaction? Do not waste any minute, open your very own multicurrency business bank account today and enjoy the perks it provides.