Benefits of Multi-currency Accounts
Is your SME business already trading international, or maybe you’re looking to move beyond Singapore and looking to grow your business and opportunities? If you are, there are many to opening a multi-currency business account. Here are some of them
• Reduced transaction costs
• Manage your foreign exchange efficiently
• Handle multiple payments easily
• Increased processing speed
• Positive customer experience
• Strengthen your supplier relations
1. Reduce transaction costs
If you hold separate accounts in different countries, each bank may charge a fee for operating the account, and because the transaction chain is more complex and often less transparent, there may be hidden charges. You may incur additional fees as payment is processed through correspondent banks – that’s the banking network that moves money around the world. A single multi-currency account enables you to hold all the currencies that match your customer and supplier bases – and you pay just one account fee.
2. Manage your foreign exchange efficiently
Foreign exchange (also known as forex or FX) is another cost to bear in mind. With a multi-currency business account, you can manage forex volatility.
Because a multi-currency account works like a holding account, you can wait until you have a good exchange rate before converting from one currency into another. And if you have sufficient funds, you can also manage supplier payments by buying currency at a good rate and storing it in your account for future use.
3. Handle multiple payments easily
Most businesses need to make multiple payments monthly or even on a daily business. Managing these operational requirements efficiently is critical.
With a multi-currency account, the administration is much easier because everything is in one place and streamlined.
4. Increased processing speed
Cross-border payments are usually slower than domestic payments, but if you can deal in local currencies, transactions will not only be more efficient, they’ll also be quicker because you’re accessing local payment networks. And with a multi-currency account that’s operated online or via an app, you have immediate access to your account wherever you are.
5. Positive customer experience
When you can pay your customers in their preferred currencies quickly, not only does it make for a happy customer. You will also save as you don’t have to undergo forced conversions to pay
6. Strengthen your supplier relations
As you are paying your suppliers in their preferred currency, they would be more grateful. In turn, this may translate to more favourable terms for your business.